F1 VISA, FICA EXEMPT , SE TAX

Forum|Forum|3 years ago
May 8, 2023
1 reply
27 views

Hi to all folks, god bless you.

Client as of Nov 2022 had been a F1 visa but on 15th Nov 2022 has become a green card holder.

He earned $120000 as self-employed and his employer had been in England. If we assume all income was associated with F1 visa period, I need a help to find out in what part of Sch C can enter this exemption, SE tax.

If $100000 was related to F1 visa period and $20000 for green card period, how can I consider SE tax for this situation?

Thanks for your help.

ProSeries Professional

This topic has been closed for replies.

BobKamman

Level 15

Looks like a dual-status alien to me. But it's confusing when you indicate he is "self employed," but has an "employer." What was his total income for the year? Just the $12,000, or is that in addition to something paid from Britain?

Resident Alien at End of Year

You must file Form 1040, U.S. Individual Income Tax Return if you are a dual-status taxpayer who becomes a resident during the year and who is a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return. Attach a statement to your return to show the income for the part of the year you are a nonresident. You can use Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents as the statement, but be sure to write "Dual-Status Statement" across the top.

https://www.irs.gov/individuals/international-taxpayers/taxation-of-dual-status-aliens

HOPE2Author

Level 7

You right. He has a dual status. All his income came from England and he was an independent contractor for a company in England. Employer, what I said I meant that company in England. I have to ask how much he earned while he was nonresident (F2 Visa) right? And how much was for the other status. His wife had had F1 visa. His wife has 2 W-2s and both were non-resident before November. After Nov 2022 they were resident since they received green card. I think for both should file 1040NR separately and for part of resident period should file 1040. New question is how to allocate wife's W-2s for resident and non-resident period. I read the link it was super useful but I confused how can I make 1040NR and 1040 in Prosereis at the same time. Also, I confused when should Write : "Dual-Status Return" and when should Write "Dual-Status Statement" across the top. I am trying to complete this return for me it is very important to find out how to do this.

Thanks for your help, God bless you.

sjrcpa

Level 15

Use Publication 519 that is referenced at the bottom of the link Bob provided.

I suspect it won't be easy to do in ProSeries. You may need to set up 3 client files.

The more I know the more I don’t know.

Resident Alien at End of Year

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