Help! On F1 status, received 1099-Misc

W

worker89

New Member
Hi,

I am an international college student on F1 status. I own a website and I receive commissions for advertisements on my website.
I received 1099-MISC with income in Box 7 (nonemployee compensation). The income is small, only about 8 hundred dollars.

When I asked my school advisor how I should file tax, she told me that it is illegal for me to work and that my F1 status will be terminated if I am found out.

I have 2 questions
1) Will I really get into trouble, since I am not really working?
2) Do I need to file tax, since the amount I earned is less than what I spent to build my website?

thanks for all help
Dave
 
I personally don't think you'd get in trouble since you are not prevented from having income, you just can't work. Since your 1099 says - non-employee compensation, that might be a proof that you didn't work for them. I'd look into filing taxes anyway, and if your entire income is less than a certain limit, you may not need to file taxes at all.
 
worker89 said:
1) Will I really get into trouble, since I am not really working?
2) Do I need to file tax, since the amount I earned is less than what I spent to build my website?
Click to expand...
1. you have started a business and are operating it. This is definately not in compliance with your F-1 status. There is no question you are 'working'.
2.You received a 1099, thus you should file a tax return. I am confident that you will not have to pay any taxes since the income is so low, but you still should file. However, filing will provide a paper trail that you have be operating a business which could be used as evidence against you by the USCIS.
 
Hi all,

what do u think is my best course of action?

Just file taxes and hope for the best?

thanks in advance
Dave
 
If you had income of more than $8450 in 2006, you must file a tax return. This would of course provide a paper trail of your violation of F-1 status. It seems that you had income of less than $8450, so you don't have to file a tax return.

I would advise you to stop with the website advertisements or at least have them paid to your address in another country. You definately don't want to receive any more 1099s.
 
owning a business does not always equate to working for that business (especially if that business is a website which may be "based" whereever - in another country). Commissions on a website for advertizing may not be construed as "being employed by a company in the US".

A friend of mine on F-1 used to buy stuff and sell stuff, and received income from the activities. While it was income, it was not employment.
 
worker89,

Several of us have been through that road, although I am not out of it yet, this would be my advice. I am not sure whether you need to file a tax return or not, find that out and do what the law says, tax evasion is a seriour crime here. I did the same thing that you did (got 1099-misc with F1 visa), and unless you apply for a greencard and need to change status then no one will ever find out, at least no one from USCIS, unless you tell them. What you need to do is in less than 6 months from the day you worked, leave the country and come back in. As long as you do that this should still allow you to get permanent residency according to the C.F.R. 245(k), which says that you can be out of status for up to 180 and still not be negated a change of status to permanent resident. Or at least that is my understanding. I have read this law and don't really understand it very well, but I am counting on it to save my butt.
 
file it....

If I were you i'll file my taxes....I believe the IRS and immigration are separate and ins will not find out about it. but on the other hand if you don't file, the IRS might come after you because they already have your 1099 on file and this may create unnecessary attention.
but please speak to an immigration lawyer before you do anything.
good luck.
 
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