H1-b and 1099

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cerruti2827

Registered Users (C)
I am hoping to find answer to following:

I work for 'X ' as full time employee on H1-B visa. Have been receiving W-2

I work 3-4 days a month for 'Y' on another concurrent H1-B visa. I receive 1099 from them.

I have been filing taxes in 2007 and 2008 with W-2 and 1099.

Recently I read on line that H1-B cannot receive 1099. Is it illegal to receive 1099 on a part-time job with a valid H1-B for that employer ? Have i dont something illegal? will it adversely effect pending I-485?
 
When you receive a 1099, you do not have an employer-employee relationship. You are working as an independent contrator where you are your own employer. There are always issues with social security and medicare taxes at the full employer+employee rates. Even if you maxed out the Social Security with your main employer, Medicare taxes are due.

Since you have a concurrent H1B, why is that employer not paying you properly? You employer has as much liability with this arrangement as you do.
 
Well, thanks for responding. This was the reason I stopped working for the part-time employer.

Social Security taxes were maxed with my main job. I did pay federal/medicare/employer etc taxes on concurrent income. I do not beleive that I owe any money to IRS. I am more concerned about USCIS and whether this was acceptable arrangement.

My accountant says that he has done several other clients' taxes in my situation and he is not aware of any problems. However, I think its matter of who ends up getting randomly a udited. So far, it seems that it is not that big of an issue for a part-time job, as long as main full time employement duties are fulfilled properly.
 
Given that you are no longer working for this employer and are up to date with taxes, I believe pointing out the reason for leaving the employer is a good thing to reply to if asked during processing.

Ask the attorney handling your GC case if he advises any action like reporting to the DOL at this time.

Corrective action on your part is a positive reflection on you; IMO, you need not be overly concerned.
 
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