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tax returns on h1b

tax returns on h1b

Old Oct 13th 2009, 6:40 pm
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Default tax returns on h1b

i am sub contracting on a h1b , when being paid does the money have to be paid to me directly or can i set up a corporation and pay myself through that , in fact does anybody know of a accountant who knows how best to deal with the h1b visa and its implications for tax returns.
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Old Oct 13th 2009, 7:51 pm
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Default Re: tax returns on h1b

Originally Posted by helmet View Post
i am sub contracting on a h1b , when being paid does the money have to be paid to me directly or can i set up a corporation and pay myself through that , in fact does anybody know of a accountant who knows how best to deal with the h1b visa and its implications for tax returns.
If you're contracting, your're self employed; see IRS.gov for details.
I'm not sure what the benefit would be in setting up a corporation to pay yourself from; the tax is going to be paid one way or another, and a corporation may put you on the hook for more taxes than you expected.
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Old Oct 14th 2009, 2:50 am
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Default Re: tax returns on h1b

I would assume that your employer (i.e. the entity paying you an income) would have to be the entity listed on your Labor Condition Application (LCA).
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Old Oct 20th 2009, 3:26 pm
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Default Re: tax returns on h1b

On H1B you will file a 1040NR which is a non-resident alien tax return.

You may wish to establish a corporation for liability reasons (you should talk to an attorney), however you are entitled to all the same business expense deductions whether you are a sole proprietor or a corporation.

Certain companies can elect to be taxed as a "S" corporation which potentially provides a good tax shelter from self employment tax. However one of the conditions is that all the owners of the company must either be US Citizens or resident aliens.

Therefore if you establish a corporation it will be taxed as a regular corporation and I think you will end up paying more tax this way.
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Old Oct 20th 2009, 6:48 pm
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Default Re: tax returns on h1b

Originally Posted by Peter Newton View Post
On H1B you will file a 1040NR which is a non-resident alien tax return.
Unless he meets the substantial presence test, which is very likely.
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Old Oct 22nd 2009, 1:07 pm
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Default Re: tax returns on h1b

Originally Posted by AdobePinon View Post
Unless he meets the substantial presence test, which is very likely.
Right- in future years he will probably meet the substantial presence test and then file on 1040.

The OP just got to the states (I believe he had his H1B interview in London in September). So he will file on 1040-NR for 2009.
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