Spouse nonresident - tax question
Mar 24th 2003, 2:57 am
#1
Guest
Posts: n/a
Spouse nonresident - tax question
Hello there:
I posted this question to misc.taxes, but it looks like they do not
know too much about tax issues when immigration is involved.
I am a green card holder, my spouse is on F-1 OPT. We will choose to
file our tax return as "Married filing jointly" since IRS permits this
situation. She is currently self-employed - if we filed her tax
return as 1040NR, she would not have to pay self employment tax, which
is really the Medicare and Soc. Sec. taxes. However, since we choose
to go with a joint return, she will be treated as a resident for IRS
regulations, and will have to pay self employment tax. Is this going
to be a problem at Social Security and INS? The reason I am asking is
because INS regards her as a nonresident alien and if she pays the
self employment tax, this will show up in SS records and they may
alert INS and let them know that she is working illegally as a
resident alien.
Any thoughts?
Thank you
I posted this question to misc.taxes, but it looks like they do not
know too much about tax issues when immigration is involved.
I am a green card holder, my spouse is on F-1 OPT. We will choose to
file our tax return as "Married filing jointly" since IRS permits this
situation. She is currently self-employed - if we filed her tax
return as 1040NR, she would not have to pay self employment tax, which
is really the Medicare and Soc. Sec. taxes. However, since we choose
to go with a joint return, she will be treated as a resident for IRS
regulations, and will have to pay self employment tax. Is this going
to be a problem at Social Security and INS? The reason I am asking is
because INS regards her as a nonresident alien and if she pays the
self employment tax, this will show up in SS records and they may
alert INS and let them know that she is working illegally as a
resident alien.
Any thoughts?
Thank you
Mar 24th 2003, 9:26 am
#2
Guest
Posts: n/a
Re: Spouse nonresident - tax question
The rules for tax residency and for immigration residency are totally
different. You can end up as a tax resident even if you are in the US as a
tourist, or even illegally. So you will not get into trouble with the
immigration agencies (BCIS, BCBP etc. INS no longer exists) for filing
that tax return.
On Sun, 23 Mar 2003 19:57:57 +0000, bulent wrote:
> Hello there:
>
> I posted this question to misc.taxes, but it looks like they do not
> know too much about tax issues when immigration is involved.
>
> I am a green card holder, my spouse is on F-1 OPT. We will choose to
> file our tax return as "Married filing jointly" since IRS permits this
> situation. She is currently self-employed - if we filed her tax
> return as 1040NR, she would not have to pay self employment tax, which
> is really the Medicare and Soc. Sec. taxes. However, since we choose
> to go with a joint return, she will be treated as a resident for IRS
> regulations, and will have to pay self employment tax. Is this going
> to be a problem at Social Security and INS? The reason I am asking is
> because INS regards her as a nonresident alien and if she pays the
> self employment tax, this will show up in SS records and they may
> alert INS and let them know that she is working illegally as a
> resident alien.
>
> Any thoughts?
>
> Thank you
different. You can end up as a tax resident even if you are in the US as a
tourist, or even illegally. So you will not get into trouble with the
immigration agencies (BCIS, BCBP etc. INS no longer exists) for filing
that tax return.
On Sun, 23 Mar 2003 19:57:57 +0000, bulent wrote:
> Hello there:
>
> I posted this question to misc.taxes, but it looks like they do not
> know too much about tax issues when immigration is involved.
>
> I am a green card holder, my spouse is on F-1 OPT. We will choose to
> file our tax return as "Married filing jointly" since IRS permits this
> situation. She is currently self-employed - if we filed her tax
> return as 1040NR, she would not have to pay self employment tax, which
> is really the Medicare and Soc. Sec. taxes. However, since we choose
> to go with a joint return, she will be treated as a resident for IRS
> regulations, and will have to pay self employment tax. Is this going
> to be a problem at Social Security and INS? The reason I am asking is
> because INS regards her as a nonresident alien and if she pays the
> self employment tax, this will show up in SS records and they may
> alert INS and let them know that she is working illegally as a
> resident alien.
>
> Any thoughts?
>
> Thank you
Mar 24th 2003, 11:57 am
#3
Guest
Posts: n/a
Re: Spouse nonresident - tax question
bulent wrote:
>
> Hello there:
>
> I posted this question to misc.taxes, but it looks like they do not
> know too much about tax issues when immigration is involved.
>
> I am a green card holder, my spouse is on F-1 OPT. We will choose to
> file our tax return as "Married filing jointly" since IRS permits this
> situation. She is currently self-employed - if we filed her tax
> return as 1040NR, she would not have to pay self employment tax, which
> is really the Medicare and Soc. Sec. taxes. However, since we choose
> to go with a joint return, she will be treated as a resident for IRS
> regulations, and will have to pay self employment tax. Is this going
> to be a problem at Social Security and INS? The reason I am asking is
> because INS regards her as a nonresident alien and if she pays the
> self employment tax, this will show up in SS records and they may
> alert INS and let them know that she is working illegally as a
> resident alien.
>
> Any thoughts?
>
> Thank you
What a tangled web we weave ... The INS and SS and IRS do speak with
each other ... She's working illegally ... she may well pay the price.
Better get ready with a plan B in case she's deported.
>
> Hello there:
>
> I posted this question to misc.taxes, but it looks like they do not
> know too much about tax issues when immigration is involved.
>
> I am a green card holder, my spouse is on F-1 OPT. We will choose to
> file our tax return as "Married filing jointly" since IRS permits this
> situation. She is currently self-employed - if we filed her tax
> return as 1040NR, she would not have to pay self employment tax, which
> is really the Medicare and Soc. Sec. taxes. However, since we choose
> to go with a joint return, she will be treated as a resident for IRS
> regulations, and will have to pay self employment tax. Is this going
> to be a problem at Social Security and INS? The reason I am asking is
> because INS regards her as a nonresident alien and if she pays the
> self employment tax, this will show up in SS records and they may
> alert INS and let them know that she is working illegally as a
> resident alien.
>
> Any thoughts?
>
> Thank you
What a tangled web we weave ... The INS and SS and IRS do speak with
each other ... She's working illegally ... she may well pay the price.
Better get ready with a plan B in case she's deported.
Mar 24th 2003, 11:59 am
#4
Guest
Posts: n/a
Re: Spouse nonresident - tax question
Ingo Pakleppa wrote:
>
> The rules for tax residency and for immigration residency are totally
> different. You can end up as a tax resident even if you are in the US as a
> tourist, or even illegally. So you will not get into trouble with the
> immigration agencies (BCIS, BCBP etc. INS no longer exists) for filing
> that tax return.
That's not the point Ingo ... what is significant is that she has been
working illegally under the OPT ... Self employment is not part of the
deal. She could conceivably get caught.
>
> The rules for tax residency and for immigration residency are totally
> different. You can end up as a tax resident even if you are in the US as a
> tourist, or even illegally. So you will not get into trouble with the
> immigration agencies (BCIS, BCBP etc. INS no longer exists) for filing
> that tax return.
That's not the point Ingo ... what is significant is that she has been
working illegally under the OPT ... Self employment is not part of the
deal. She could conceivably get caught.
Mar 24th 2003, 7:31 pm
#5
Guest
Posts: n/a
Re: Spouse nonresident - tax question
I do not agree with your opinion that she is working illegally under
OPT. She does not have a firm or a business. She is hired by a
consulting firm to perform services only for that firm, and they have
an office for her in the building. Her degree is MBA and she is
providing consulting only in her field. The only issue is her income
was reported on a 1099 instead of a W-2.
S B wrote in message news:...
> bulent wrote:
> >
> > Hello there:
> >
> > I posted this question to misc.taxes, but it looks like they do not
> > know too much about tax issues when immigration is involved.
> >
> > I am a green card holder, my spouse is on F-1 OPT. We will choose to
> > file our tax return as "Married filing jointly" since IRS permits this
> > situation. She is currently self-employed - if we filed her tax
> > return as 1040NR, she would not have to pay self employment tax, which
> > is really the Medicare and Soc. Sec. taxes. However, since we choose
> > to go with a joint return, she will be treated as a resident for IRS
> > regulations, and will have to pay self employment tax. Is this going
> > to be a problem at Social Security and INS? The reason I am asking is
> > because INS regards her as a nonresident alien and if she pays the
> > self employment tax, this will show up in SS records and they may
> > alert INS and let them know that she is working illegally as a
> > resident alien.
> >
> > Any thoughts?
> >
> > Thank you
>
>
> What a tangled web we weave ... The INS and SS and IRS do speak with
> each other ... She's working illegally ... she may well pay the price.
> Better get ready with a plan B in case she's deported.
OPT. She does not have a firm or a business. She is hired by a
consulting firm to perform services only for that firm, and they have
an office for her in the building. Her degree is MBA and she is
providing consulting only in her field. The only issue is her income
was reported on a 1099 instead of a W-2.
S B wrote in message news:...
> bulent wrote:
> >
> > Hello there:
> >
> > I posted this question to misc.taxes, but it looks like they do not
> > know too much about tax issues when immigration is involved.
> >
> > I am a green card holder, my spouse is on F-1 OPT. We will choose to
> > file our tax return as "Married filing jointly" since IRS permits this
> > situation. She is currently self-employed - if we filed her tax
> > return as 1040NR, she would not have to pay self employment tax, which
> > is really the Medicare and Soc. Sec. taxes. However, since we choose
> > to go with a joint return, she will be treated as a resident for IRS
> > regulations, and will have to pay self employment tax. Is this going
> > to be a problem at Social Security and INS? The reason I am asking is
> > because INS regards her as a nonresident alien and if she pays the
> > self employment tax, this will show up in SS records and they may
> > alert INS and let them know that she is working illegally as a
> > resident alien.
> >
> > Any thoughts?
> >
> > Thank you
>
>
> What a tangled web we weave ... The INS and SS and IRS do speak with
> each other ... She's working illegally ... she may well pay the price.
> Better get ready with a plan B in case she's deported.
Mar 24th 2003, 8:24 pm
#6
Guest
Posts: n/a
Re: Spouse nonresident - tax question
bulent wrote:
>
> I do not agree with your opinion that she is working illegally under
> OPT. She does not have a firm or a business. She is hired by a
> consulting firm to perform services only for that firm, and they have
> an office for her in the building. Her degree is MBA and she is
> providing consulting only in her field. The only issue is her income
> was reported on a 1099 instead of a W-2.
BCIS does NOT consider practical training to include self-employment.
Many schools indicate this on their web pages.
She is working illegally.
>
> I do not agree with your opinion that she is working illegally under
> OPT. She does not have a firm or a business. She is hired by a
> consulting firm to perform services only for that firm, and they have
> an office for her in the building. Her degree is MBA and she is
> providing consulting only in her field. The only issue is her income
> was reported on a 1099 instead of a W-2.
BCIS does NOT consider practical training to include self-employment.
Many schools indicate this on their web pages.
She is working illegally.
Mar 24th 2003, 9:27 pm
#7
Guest
Posts: n/a
Re: Spouse nonresident - tax question
I copied this from a university website,
----------------------------
Employment" is defined as the rendering of services on either a part-time or
full-time basis for compensation, financial or otherwise, including
self-employment. The regulations divide employment of F-1 students into
several categories:
------------------------
And it does mention about "including self-employment" ??
YJ
"S B" wrote in message
news:[email protected]...
> bulent wrote:
> >
> > I do not agree with your opinion that she is working illegally under
> > OPT. She does not have a firm or a business. She is hired by a
> > consulting firm to perform services only for that firm, and they have
> > an office for her in the building. Her degree is MBA and she is
> > providing consulting only in her field. The only issue is her income
> > was reported on a 1099 instead of a W-2.
> BCIS does NOT consider practical training to include self-employment.
> Many schools indicate this on their web pages.
> She is working illegally.
----------------------------
Employment" is defined as the rendering of services on either a part-time or
full-time basis for compensation, financial or otherwise, including
self-employment. The regulations divide employment of F-1 students into
several categories:
------------------------
And it does mention about "including self-employment" ??
YJ
"S B" wrote in message
news:[email protected]...
> bulent wrote:
> >
> > I do not agree with your opinion that she is working illegally under
> > OPT. She does not have a firm or a business. She is hired by a
> > consulting firm to perform services only for that firm, and they have
> > an office for her in the building. Her degree is MBA and she is
> > providing consulting only in her field. The only issue is her income
> > was reported on a 1099 instead of a W-2.
> BCIS does NOT consider practical training to include self-employment.
> Many schools indicate this on their web pages.
> She is working illegally.
Mar 24th 2003, 9:59 pm
#8
Guest
Posts: n/a
Re: Spouse nonresident - tax question
YJ wrote:
>
> I copied this from a university website,
>
> ----------------------------
> Employment" is defined as the rendering of services on either a part-time or
> full-time basis for compensation, financial or otherwise, including
> self-employment. The regulations divide employment of F-1 students into
> several categories:
> ------------------------
>
> And it does mention about "including self-employment" ??
>
> YJ
That is a definition of "employment" ... it is NOT the definition of
"Practical Training" ... it is mentioned on several sites to indicate
that any of these activities are not permitted without INS
authorization. The context of the definition is significant.
From the site ...
http://elmo.shore.ctc.edu/icurrent/e...nt_options.htm
"Practical training authorization is automatically terminated if you
transfer to another school. Self-employment does not qualify as
practical
training."
http://depts.washington.edu/uwiso/students/eop.html
"Self-employment does not qualify as practical training."
http://www.franklin.edu/prospective/...mployment.html
"Foreign students may not be "self-employed," that is, they may not
provide professional services for a fee or work as "independent
contractors."
http://www.pct.edu/international/iss...t_services.htm
"Self-employment is not permitted. Foreign students may not provide
professional services for a fee or work as "independent contractors."
http://www.iievn.org/studyUSA%20pre-departure.htm
"You many not be self-employed as an international student. "
http://www.duke.edu/web/cssa/newbie/working.html
"AT NO TIME can foreign students engage in self-employment.
Engaging in unauthorized work automatically violates your visa status,
and a potential employer (unintentionally or perhaps intentionally)
will
have hired an illegal alien and faces prosecution. "
The last one is probably the most strong statement ... and from a highly
credible source - Duke University is a decidedly renowned one. The
emphasis "AT NO TIME" comes from the site ... and means what it says.
Stuart
>
> I copied this from a university website,
>
> ----------------------------
> Employment" is defined as the rendering of services on either a part-time or
> full-time basis for compensation, financial or otherwise, including
> self-employment. The regulations divide employment of F-1 students into
> several categories:
> ------------------------
>
> And it does mention about "including self-employment" ??
>
> YJ
That is a definition of "employment" ... it is NOT the definition of
"Practical Training" ... it is mentioned on several sites to indicate
that any of these activities are not permitted without INS
authorization. The context of the definition is significant.
From the site ...
http://elmo.shore.ctc.edu/icurrent/e...nt_options.htm
"Practical training authorization is automatically terminated if you
transfer to another school. Self-employment does not qualify as
practical
training."
http://depts.washington.edu/uwiso/students/eop.html
"Self-employment does not qualify as practical training."
http://www.franklin.edu/prospective/...mployment.html
"Foreign students may not be "self-employed," that is, they may not
provide professional services for a fee or work as "independent
contractors."
http://www.pct.edu/international/iss...t_services.htm
"Self-employment is not permitted. Foreign students may not provide
professional services for a fee or work as "independent contractors."
http://www.iievn.org/studyUSA%20pre-departure.htm
"You many not be self-employed as an international student. "
http://www.duke.edu/web/cssa/newbie/working.html
"AT NO TIME can foreign students engage in self-employment.
Engaging in unauthorized work automatically violates your visa status,
and a potential employer (unintentionally or perhaps intentionally)
will
have hired an illegal alien and faces prosecution. "
The last one is probably the most strong statement ... and from a highly
credible source - Duke University is a decidedly renowned one. The
emphasis "AT NO TIME" comes from the site ... and means what it says.
Stuart
Mar 25th 2003, 3:03 am
#9
Guest
Posts: n/a
Re: Spouse nonresident - tax question
Thanks for the great information.
Say if my husband (permanent resident) has a small business and I am
voluntarily helping him out. Will this violate anything???
I have a EAD under SSR. (special student relief)
Thank you very much.
YJ.
"S B" wrote in message
news:[email protected]...
> YJ wrote:
> >
> > I copied this from a university website,
> >
> > ----------------------------
> > Employment" is defined as the rendering of services on either a
part-time or
> > full-time basis for compensation, financial or otherwise, including
> > self-employment. The regulations divide employment of F-1 students into
> > several categories:
> > ------------------------
> >
> > And it does mention about "including self-employment" ??
> >
> > YJ
> That is a definition of "employment" ... it is NOT the definition of
> "Practical Training" ... it is mentioned on several sites to indicate
> that any of these activities are not permitted without INS
> authorization. The context of the definition is significant.
> From the site ...
> http://elmo.shore.ctc.edu/icurrent/e...nt_options.htm
> "Practical training authorization is automatically terminated if you
> transfer to another school. Self-employment does not qualify as
> practical
> training."
> http://depts.washington.edu/uwiso/students/eop.html
> "Self-employment does not qualify as practical training."
> http://www.franklin.edu/prospective/...mployment.html
> "Foreign students may not be "self-employed," that is, they may not
> provide professional services for a fee or work as "independent
> contractors."
> http://www.pct.edu/international/iss...t_services.htm
> "Self-employment is not permitted. Foreign students may not provide
> professional services for a fee or work as "independent contractors."
> http://www.iievn.org/studyUSA%20pre-departure.htm
> "You many not be self-employed as an international student. "
> http://www.duke.edu/web/cssa/newbie/working.html
> "AT NO TIME can foreign students engage in self-employment.
> Engaging in unauthorized work automatically violates your visa status,
> and a potential employer (unintentionally or perhaps intentionally)
> will
> have hired an illegal alien and faces prosecution. "
> The last one is probably the most strong statement ... and from a highly
> credible source - Duke University is a decidedly renowned one. The
> emphasis "AT NO TIME" comes from the site ... and means what it says.
> Stuart
Say if my husband (permanent resident) has a small business and I am
voluntarily helping him out. Will this violate anything???
I have a EAD under SSR. (special student relief)
Thank you very much.
YJ.
"S B" wrote in message
news:[email protected]...
> YJ wrote:
> >
> > I copied this from a university website,
> >
> > ----------------------------
> > Employment" is defined as the rendering of services on either a
part-time or
> > full-time basis for compensation, financial or otherwise, including
> > self-employment. The regulations divide employment of F-1 students into
> > several categories:
> > ------------------------
> >
> > And it does mention about "including self-employment" ??
> >
> > YJ
> That is a definition of "employment" ... it is NOT the definition of
> "Practical Training" ... it is mentioned on several sites to indicate
> that any of these activities are not permitted without INS
> authorization. The context of the definition is significant.
> From the site ...
> http://elmo.shore.ctc.edu/icurrent/e...nt_options.htm
> "Practical training authorization is automatically terminated if you
> transfer to another school. Self-employment does not qualify as
> practical
> training."
> http://depts.washington.edu/uwiso/students/eop.html
> "Self-employment does not qualify as practical training."
> http://www.franklin.edu/prospective/...mployment.html
> "Foreign students may not be "self-employed," that is, they may not
> provide professional services for a fee or work as "independent
> contractors."
> http://www.pct.edu/international/iss...t_services.htm
> "Self-employment is not permitted. Foreign students may not provide
> professional services for a fee or work as "independent contractors."
> http://www.iievn.org/studyUSA%20pre-departure.htm
> "You many not be self-employed as an international student. "
> http://www.duke.edu/web/cssa/newbie/working.html
> "AT NO TIME can foreign students engage in self-employment.
> Engaging in unauthorized work automatically violates your visa status,
> and a potential employer (unintentionally or perhaps intentionally)
> will
> have hired an illegal alien and faces prosecution. "
> The last one is probably the most strong statement ... and from a highly
> credible source - Duke University is a decidedly renowned one. The
> emphasis "AT NO TIME" comes from the site ... and means what it says.
> Stuart
Mar 25th 2003, 4:45 am
#10
Guest
Posts: n/a
Re: Spouse nonresident - tax question
On Mon, 24 Mar 2003 12:57:53 +0000, S B wrote:
> bulent wrote:
>>
>> Hello there:
>>
>> I posted this question to misc.taxes, but it looks like they do not
>> know too much about tax issues when immigration is involved.
>>
>> I am a green card holder, my spouse is on F-1 OPT. We will choose to
>> file our tax return as "Married filing jointly" since IRS permits this
>> situation. She is currently self-employed - if we filed her tax return
>> as 1040NR, she would not have to pay self employment tax, which is
>> really the Medicare and Soc. Sec. taxes. However, since we choose to
>> go with a joint return, she will be treated as a resident for IRS
>> regulations, and will have to pay self employment tax. Is this going
>> to be a problem at Social Security and INS? The reason I am asking is
>> because INS regards her as a nonresident alien and if she pays the self
>> employment tax, this will show up in SS records and they may alert INS
>> and let them know that she is working illegally as a resident alien.
>>
>> Any thoughts?
>>
>> Thank you
>
>
> What a tangled web we weave ... The INS and SS and IRS do speak with
> each other ... She's working illegally ... she may well pay the price.
> Better get ready with a plan B in case she's deported.
I don't think this is illegal as per the law. People with employment
authorization can work for any employer; it is not tied to one particular
employer. I'm not even sure if the practical training has to be in your
field (although it obviously *should* be).
However, since the university recommends the work authorization, they can
impose additional restrictions as a matter of policy. I'm not sure just
how much that actually means in legal terms, though.
> bulent wrote:
>>
>> Hello there:
>>
>> I posted this question to misc.taxes, but it looks like they do not
>> know too much about tax issues when immigration is involved.
>>
>> I am a green card holder, my spouse is on F-1 OPT. We will choose to
>> file our tax return as "Married filing jointly" since IRS permits this
>> situation. She is currently self-employed - if we filed her tax return
>> as 1040NR, she would not have to pay self employment tax, which is
>> really the Medicare and Soc. Sec. taxes. However, since we choose to
>> go with a joint return, she will be treated as a resident for IRS
>> regulations, and will have to pay self employment tax. Is this going
>> to be a problem at Social Security and INS? The reason I am asking is
>> because INS regards her as a nonresident alien and if she pays the self
>> employment tax, this will show up in SS records and they may alert INS
>> and let them know that she is working illegally as a resident alien.
>>
>> Any thoughts?
>>
>> Thank you
>
>
> What a tangled web we weave ... The INS and SS and IRS do speak with
> each other ... She's working illegally ... she may well pay the price.
> Better get ready with a plan B in case she's deported.
I don't think this is illegal as per the law. People with employment
authorization can work for any employer; it is not tied to one particular
employer. I'm not even sure if the practical training has to be in your
field (although it obviously *should* be).
However, since the university recommends the work authorization, they can
impose additional restrictions as a matter of policy. I'm not sure just
how much that actually means in legal terms, though.
Mar 25th 2003, 1:08 pm
#11
Guest
Posts: n/a
Re: Spouse nonresident - tax question
YJ wrote:
>
> Thanks for the great information.
> Say if my husband (permanent resident) has a small business and I am
> voluntarily helping him out. Will this violate anything???
> I have a EAD under SSR. (special student relief)
>
> Thank you very much.
>
> YJ.
I would presume that your EAD is restricted. Volunteering *is*
considered employment if the work would normally be done by a paid
employee, therefore, the chances of this work being illegal is quite
high!
>
> Thanks for the great information.
> Say if my husband (permanent resident) has a small business and I am
> voluntarily helping him out. Will this violate anything???
> I have a EAD under SSR. (special student relief)
>
> Thank you very much.
>
> YJ.
I would presume that your EAD is restricted. Volunteering *is*
considered employment if the work would normally be done by a paid
employee, therefore, the chances of this work being illegal is quite
high!
Mar 25th 2003, 5:04 pm
#12
Guest
Posts: n/a
Re: Spouse nonresident - tax question
Stuart,
I can see where you are coming from. So much for trusting the
International Office at the school. When we asked them about this,
they said it does not matter how she is paid for her services, as long
as she is working in her field. Fortunately the work she is doing is
*exactly* the same as what she studied at school. But I do not know
if this is going to help BCIS's approach to this matter.
"Ingo Pakleppa" wrote in message news:...
> On Mon, 24 Mar 2003 12:57:53 +0000, S B wrote:
>
> > bulent wrote:
> >>
> >> Hello there:
> >>
> >> I posted this question to misc.taxes, but it looks like they do not
> >> know too much about tax issues when immigration is involved.
> >>
> >> I am a green card holder, my spouse is on F-1 OPT. We will choose to
> >> file our tax return as "Married filing jointly" since IRS permits this
> >> situation. She is currently self-employed - if we filed her tax return
> >> as 1040NR, she would not have to pay self employment tax, which is
> >> really the Medicare and Soc. Sec. taxes. However, since we choose to
> >> go with a joint return, she will be treated as a resident for IRS
> >> regulations, and will have to pay self employment tax. Is this going
> >> to be a problem at Social Security and INS? The reason I am asking is
> >> because INS regards her as a nonresident alien and if she pays the self
> >> employment tax, this will show up in SS records and they may alert INS
> >> and let them know that she is working illegally as a resident alien.
> >>
> >> Any thoughts?
> >>
> >> Thank you
> >
> >
> > What a tangled web we weave ... The INS and SS and IRS do speak with
> > each other ... She's working illegally ... she may well pay the price.
> > Better get ready with a plan B in case she's deported.
>
> I don't think this is illegal as per the law. People with employment
> authorization can work for any employer; it is not tied to one particular
> employer. I'm not even sure if the practical training has to be in your
> field (although it obviously *should* be).
>
> However, since the university recommends the work authorization, they can
> impose additional restrictions as a matter of policy. I'm not sure just
> how much that actually means in legal terms, though.
I can see where you are coming from. So much for trusting the
International Office at the school. When we asked them about this,
they said it does not matter how she is paid for her services, as long
as she is working in her field. Fortunately the work she is doing is
*exactly* the same as what she studied at school. But I do not know
if this is going to help BCIS's approach to this matter.
"Ingo Pakleppa" wrote in message news:...
> On Mon, 24 Mar 2003 12:57:53 +0000, S B wrote:
>
> > bulent wrote:
> >>
> >> Hello there:
> >>
> >> I posted this question to misc.taxes, but it looks like they do not
> >> know too much about tax issues when immigration is involved.
> >>
> >> I am a green card holder, my spouse is on F-1 OPT. We will choose to
> >> file our tax return as "Married filing jointly" since IRS permits this
> >> situation. She is currently self-employed - if we filed her tax return
> >> as 1040NR, she would not have to pay self employment tax, which is
> >> really the Medicare and Soc. Sec. taxes. However, since we choose to
> >> go with a joint return, she will be treated as a resident for IRS
> >> regulations, and will have to pay self employment tax. Is this going
> >> to be a problem at Social Security and INS? The reason I am asking is
> >> because INS regards her as a nonresident alien and if she pays the self
> >> employment tax, this will show up in SS records and they may alert INS
> >> and let them know that she is working illegally as a resident alien.
> >>
> >> Any thoughts?
> >>
> >> Thank you
> >
> >
> > What a tangled web we weave ... The INS and SS and IRS do speak with
> > each other ... She's working illegally ... she may well pay the price.
> > Better get ready with a plan B in case she's deported.
>
> I don't think this is illegal as per the law. People with employment
> authorization can work for any employer; it is not tied to one particular
> employer. I'm not even sure if the practical training has to be in your
> field (although it obviously *should* be).
>
> However, since the university recommends the work authorization, they can
> impose additional restrictions as a matter of policy. I'm not sure just
> how much that actually means in legal terms, though.
Mar 25th 2003, 5:48 pm
#13
Guest
Posts: n/a
Re: Spouse nonresident - tax question
bulent wrote:
>
> Stuart,
>
> I can see where you are coming from. So much for trusting the
> International Office at the school. When we asked them about this,
> they said it does not matter how she is paid for her services, as long
> as she is working in her field. Fortunately the work she is doing is
> *exactly* the same as what she studied at school. But I do not know
> if this is going to help BCIS's approach to this matter.
This definitely has the potential to cause problems. Whether it *will*
or not is another matter altogether, especially in the current situation
with high terrorist alert status in the US.
She might be better off if there is some kind of "exclusivity" clause in
her agreement with the company she's working for ... i.e. she can only
work for them.
>
> Stuart,
>
> I can see where you are coming from. So much for trusting the
> International Office at the school. When we asked them about this,
> they said it does not matter how she is paid for her services, as long
> as she is working in her field. Fortunately the work she is doing is
> *exactly* the same as what she studied at school. But I do not know
> if this is going to help BCIS's approach to this matter.
This definitely has the potential to cause problems. Whether it *will*
or not is another matter altogether, especially in the current situation
with high terrorist alert status in the US.
She might be better off if there is some kind of "exclusivity" clause in
her agreement with the company she's working for ... i.e. she can only
work for them.
Mar 25th 2003, 6:57 pm
#14
Guest
Posts: n/a
Re: Spouse nonresident - tax question
For what's it worth...I have been working illegally for the past 3
years (H1 expired in Feb 2000) and I file my tax returns EVERY year! I
never had any problems with INS tracking me down.
In my opinon, NOT filing your tax returns would do more harm then good
as when you go file your immigration papers - past copies of tax
returns helps your petition. Plus they are hefty fines and penalities
imposed by the IRS for not filing a return when you owe taxes.
Just my 2 cents worth..
S B wrote in message news:...
return.
>
> That's not the point Ingo ... what is significant is that she has been
> working illegally under the OPT ... Self employment is not part of the
> deal. She could conceivably get caught.
years (H1 expired in Feb 2000) and I file my tax returns EVERY year! I
never had any problems with INS tracking me down.
In my opinon, NOT filing your tax returns would do more harm then good
as when you go file your immigration papers - past copies of tax
returns helps your petition. Plus they are hefty fines and penalities
imposed by the IRS for not filing a return when you owe taxes.
Just my 2 cents worth..
S B wrote in message news:...
return.
>
> That's not the point Ingo ... what is significant is that she has been
> working illegally under the OPT ... Self employment is not part of the
> deal. She could conceivably get caught.
Mar 25th 2003, 11:17 pm
#15
Guest
Posts: n/a
Re: Spouse nonresident - tax question
Stuart,
She started working last November and unfortunately she does not have
an agreement with the company with the "exclusivity" cause. In fact,
I do not think she even has an agreement with them for her services.
Thanks for bringing this up, we are hoping that the company will apply
for an H-1 soon but in the meantime, we will make every effort to
remedy this situation. I guess I will call our attorney pretty soon
here.
The interesting thing is I have recently talked to our (a very well
known and respected) attorney for the H-1 application, and I had
described him what the current situation was. I did not directly ask
him if this situation was OK but I guess he thought everything was
fine since he did not bring up anything about working as an
independent contractor with OPT being illegal. I would have thought
that as soon as I had explained this situation to him, he would have
reacted the same way that you did.
We'll see how it goes. Thanks for your input.
S B wrote in message news:...
> bulent wrote:
> >
> > Stuart,
> >
> > I can see where you are coming from. So much for trusting the
> > International Office at the school. When we asked them about this,
> > they said it does not matter how she is paid for her services, as long
> > as she is working in her field. Fortunately the work she is doing is
> > *exactly* the same as what she studied at school. But I do not know
> > if this is going to help BCIS's approach to this matter.
>
> This definitely has the potential to cause problems. Whether it *will*
> or not is another matter altogether, especially in the current situation
> with high terrorist alert status in the US.
>
> She might be better off if there is some kind of "exclusivity" clause in
> her agreement with the company she's working for ... i.e. she can only
> work for them.
She started working last November and unfortunately she does not have
an agreement with the company with the "exclusivity" cause. In fact,
I do not think she even has an agreement with them for her services.
Thanks for bringing this up, we are hoping that the company will apply
for an H-1 soon but in the meantime, we will make every effort to
remedy this situation. I guess I will call our attorney pretty soon
here.
The interesting thing is I have recently talked to our (a very well
known and respected) attorney for the H-1 application, and I had
described him what the current situation was. I did not directly ask
him if this situation was OK but I guess he thought everything was
fine since he did not bring up anything about working as an
independent contractor with OPT being illegal. I would have thought
that as soon as I had explained this situation to him, he would have
reacted the same way that you did.
We'll see how it goes. Thanks for your input.
S B wrote in message news:...
> bulent wrote:
> >
> > Stuart,
> >
> > I can see where you are coming from. So much for trusting the
> > International Office at the school. When we asked them about this,
> > they said it does not matter how she is paid for her services, as long
> > as she is working in her field. Fortunately the work she is doing is
> > *exactly* the same as what she studied at school. But I do not know
> > if this is going to help BCIS's approach to this matter.
>
> This definitely has the potential to cause problems. Whether it *will*
> or not is another matter altogether, especially in the current situation
> with high terrorist alert status in the US.
>
> She might be better off if there is some kind of "exclusivity" clause in
> her agreement with the company she's working for ... i.e. she can only
> work for them.