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Old 11-03-2016, 01:31 PM
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Freelancer Not Counted As A U.S. Person?

Hello, if I am a freelancer and a nonresident alien, who is also working a W2 job part time, what should I do in order to pay taxes? Do I even need to pay taxes for the freelancing part or just the W2 job?



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Old 11-03-2016, 08:57 PM
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Hello, if I am a freelancer and a nonresident alien, who is also working a W2 job part time, what should I do in order to pay taxes?====>> you are a nonUS resident aslongas you have not passed the green card test or the substantial presence test.then, you may receive a Form 1042-S and a Form W-2; only a Form 1042-S or only a Form W-2. you should never receive a Form 1099. Non-resident foreign workers /foreign students who stay and work in the US are nevertheless subject to withholding tax. Form 1042-S used to report all your w2 employee compensation payments that are exempt from taxation under an income tax treaty and All other taxable income paid to you, a Non US resident. is the annual information return for any monetary amounts given to a non-resident alien working in a U.S-based institution / business.
on your regular W2 income, you need to pay taxes to IRS/state but you are exempt from soc sec taxes so called FICA tax; but all non US resident aliens are also exempt from self-employment tax aka SECA tax covering Social Security. However, non-resident aliens who are citizens of countries that have totalization agreements with the US, in which their US Social Security payments cover their retirement and disability benefits in their home countries, may be required to make self-employment Social Security contributions. 19 Euro countries and Australia, Canada, Chile, Japan and South Korea, have such agreements with the US You must file Form 1040NR. you cannot claim the standard deduction. Use Schedule A of Form 1040NR to claim itemized deductions. If you are filing Form 1040NR-EZ, youcan only claim a deduction for state or local income taxes. If you are claiming any other deduction, they must file Form 1040NR.However, students and business apprentices from India may be eligible to claim the standard deduction.As a freelancer you need to file form SCh C and report your self employment income as a freelancer on SCh C and on form 1040NR line 13.i guess aslongas the amount on your SCh C line 29/ 31 is $400 or exceeds $400 you need to pay estimated taxes to IRS/your state.


Do I even need to pay taxes for the freelancing part or just the W2 job?======>As mentioned above



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