h1b contractor and tax
#1
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Joined: Aug 2008
Location: cocoa beach florida
Posts: 35
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!
#4
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Joined: Aug 2008
Location: cocoa beach florida
Posts: 35
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??
#5
Re: 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!
#6
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Thread Starter
Joined: Aug 2008
Location: cocoa beach florida
Posts: 35
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
#7
Re: h1b contractor and tax
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.
#8
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Thread Starter
Joined: Aug 2008
Location: cocoa beach florida
Posts: 35
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
#10
Re: h1b contractor and tax
http://britishexpats.com/forum/showthread.php?p=8013608
#11
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Joined: Jul 2004
Posts: 102
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
#12
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Joined: Jan 2008
Location: SoCal
Posts: 437
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
#13
Forum Regular
Joined: Dec 2006
Location: Atlanta
Posts: 66
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.
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.