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-   -   h1b contractor and tax (https://britishexpats.com/forum/usa-57/h1b-contractor-tax-644935/)

helmet Dec 15th 2009 5:32 pm

h1b contractor and tax
 
hello , got my h1b and just done first job for company but i am a contractor not full time employed . So when doing my taxes ( i think) i will file a 1099 , does anyone have any suggestions on how to minimize the amount of tax i will have to pay ? can i start an LLC or do i have to be paid direct to me ? any suggestions welcomed , thank you!

Bob Dec 15th 2009 6:10 pm

Re: h1b contractor and tax
 
something to ask the sponsors surely and their lawyers?

fatbrit Dec 15th 2009 6:15 pm

Re: h1b contractor and tax
 

Originally Posted by helmet (Post 8175138)
hello , got my h1b and just done first job for company but i am a contractor not full time employed .

I'd say there was an oxymoron here. Certainly skating on thin ice if nothing else.

helmet Dec 15th 2009 6:46 pm

Re: h1b contractor and tax
 
skating on thin ice ?? there is nothing wrong with contracting on a H1B if you have nothing helpful to say then why bother??

Ray Dec 15th 2009 6:47 pm

Re: h1b contractor and tax
 

Originally Posted by helmet (Post 8175138)
hello , got my h1b and just done first job for company but i am a contractor not full time employed . So when doing my taxes ( i think) i will file a 1099 , does anyone have any suggestions on how to minimize the amount of tax i will have to pay ? can i start an LLC or do i have to be paid direct to me ? any suggestions welcomed , thank you!

Outsourcing companies .. the very thing the USCIS is clamping down on ..with 25000 actual site visits being done.

helmet Dec 15th 2009 6:50 pm

Re: h1b contractor and tax
 
how do you think you can comment on my situation without knowing anything?? I am not working for an outsourcing company I am working for one company as a contractor as stated in my H1B application so obviously there is no problem . If we could get back to my original question and hopefully some helpful responses

fatbrit Dec 15th 2009 6:56 pm

Re: h1b contractor and tax
 

Originally Posted by helmet (Post 8175338)
skating on thin ice ?? there is nothing wrong with contracting on a H1B if you have nothing helpful to say then why bother??

It's your funeral, not mine. If you don't want anyone to point out that you're on thin ice, don't post it in a public forum. Other folks who are looking at an H1b need to know that this is not the norm, and they find this out by reading the replies. So get off your high horse -- this forum ain't about you.

helmet Dec 15th 2009 7:07 pm

Re: h1b contractor and tax
 
what are you going on about ?? are you a H1b immigration specialist?? do you no more than the attorney who filed my application or the officials who granted my visa?? If you cant help with my original question thats fine but stop wittering on

AdobePinon Dec 15th 2009 7:56 pm

Re: h1b contractor and tax
 

Originally Posted by helmet (Post 8175405)
what are you going on about ?? are you a H1b immigration specialist?? do you no more than the attorney who filed my application or the officials who granted my visa?? If you cant help with my original question thats fine but stop wittering on

Then go pay someone to say exactly what you want to hear.

meauxna Dec 15th 2009 7:56 pm

Re: h1b contractor and tax
 

Originally Posted by helmet (Post 8175405)
what are you going on about ?? are you a H1b immigration specialist?? do you no more than the attorney who filed my application or the officials who granted my visa?? If you cant help with my original question thats fine but stop wittering on

I don't really want to help you avoid tax but your question was already answered the last time you asked it.
http://britishexpats.com/forum/showthread.php?p=8013608

austin_d_powers Dec 16th 2009 9:56 pm

Re: h1b contractor and tax
 

Originally Posted by helmet (Post 8175352)
how do you think you can comment on my situation without knowing anything?? I am not working for an outsourcing company I am working for one company as a contractor as stated in my H1B application so obviously there is no problem . If we could get back to my original question and hopefully some helpful responses

If you have a H1B visa then legally you are an employee of the company that applied for that visa. As an employee you should receive a W2 form from your employer in Jan/Feb showing your earnings and taxes paid. You can not be an independent contractor on a H1B visa. If you are being paid by this company then you must have signed some sort of contract/ paper work stating your relationship to the company (employee, corp to corp, 1099).

emailrob Dec 17th 2009 6:07 am

Re: h1b contractor and tax
 
are you an employee but are contracted out to other companies to perform services for them? If so, as above you are an employee of your parent company and should be paid and taxed as such, IMO

aceastwood Dec 19th 2009 7:34 pm

Re: h1b contractor and tax
 
You will be given a 1099 by your "employer", not file one. Like others, I don't see how you can be sponsored for an H1B and yet not be an employee.

The IRS is pretty hot on companies that classify their workers as contractors rather than employees. Your 'employer' gets significant benefit from treating you as an independent contractor. See http://jobsearchtech.about.com/od/la...l/aa121800.htm.

However, if the IRS decides that you are really an employee, your 'employer' will get hit with a bunch of extra costs.

If you are genuinely a contractor, then you will need to pay self-employment tax. Basically, what this means is that you pay both the individual and the employer's social security and Medicare (one of the benefits the company gets by not treating you as an employee). Say goodbye to 15.3%

Then you pay Federal and state (in most states) tax on the rest.


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