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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14869
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am a F1 MBA student from one of the reputed public universities.

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I am a F1 MBA student from one of the reputed public universities. After 1 year of MBA program and before starting my full-time CPT in Summer'11, my university asked me to work on a student project for 5 days with another reputed public university. This sister public university asked to work as an independent contractor and mentioned that they would (on their own) reimburse for my student travel and phone calls cost (while working on the student project) which I agreed to. They later paid $1000 as reimbursement for these travel costs etc. They have sent me 1099-Misc now for filing my taxes. The amount $1000 is mentioned under non-employee compensation (Box 7) of 1099-Misc.

Is this illegal for F1 student, like me to have 1099-Misc for reimbursement from a public university. Am I voilating my status. If yes, whats the way out. I am working to file taxes for 1099-Misc tomm. Please advice.

Robin D :

Hello and thank you for using Just Answer
It is not liiegal for a student on an F1 VISA to receive a 1099MISC. You will need to report the income on the 1040NR return with the Schedule C attached to show the Self Employment income. You will not need to pay Self Employment tax on the net earnings. Any amounts for expenses that you have a receipt for can be claimed against the income.
I hope this information is helpful and thank you in advance for clicking ACCEPT

Customer:

Thanks for the response. I have a quick follow-up question. Since I didnt know about the receipts, I have only receipts for a few expenses and not for total $1000. But I have incurred cost close or more to that amount. Can I still claim $1000 as expense ?

Robin D :

If you were audited by the IRS they would want to see receipts for the expenses claimed

Robin D :

If you coulc get copy of the expenses you turned in to the university that they used to reimburse you by that would be good

Robin D :

Please know you can always come back even after you click ACCEPT

Robin D :

Did you have another question

Robin D :

I thank you again and although you thanked me for my response you will need to actually CLICK on the ACCEPT if you are satisfied and complete on this subject. If you have another question on this specific subject then you can post that before you click ACCEPT.

Customer:

Thanks. I would like to accept just after this last bit. As soon as you respond to this.

Robin D :

Go ahead

Customer:

University didnt ask me to sumbit any receipts..

Robin D :

How did they know what to reimburse

Customer:

they just asked me ..

Customer:

and verified at the market level

Customer:

standards for travel

Customer:

it actually combination of travel expenses and phone bills etc

Robin D :

The IRS is not that trusting. You would ned to show a log for any travel that was directly related to the work and not just getting tot he other University. You can use the reciepts for the phone.

Customer:

ok thanks

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