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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13116
Experience:  15years with H & R Block. Divisional leader, Instructor
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Exchange student here Florida is doing a Medical Research

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Exchange student here Florida is doing a Medical Research Study and being compensated for the study. So, is this legal and how do we report his income earned without a SS# ***** ITIN. Can he continue doing the study?

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

If he is compensated they should have requested his tax payer identification number (ITIN or SSN). If they pay $600 or more to him they must issue a 1099MISC.

He would need to file a tax return and complete form W7 to request an ITIN.

Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

Customer: replied 4 days ago.

Okay, I get that, but how about for the employer who has to issue a 1099-MISC without a ITIN or Social Security Number?

They will withhold tax on the payment because there is no identification by the receiver.

An employer is not supposed to hire someone without authorization to work in the US.

Customer: replied 4 days ago.

even as an exchange student

A student would still need an ITIN to be employed.

Customer: replied 4 days ago.

Okay, not suppose to but in your previous answer you stated they can apply for a ITIN when they file a tax return and a W-7 ? They were working without authorization then? So, can an ITIN be applied for while here on his exchange which expires in July of 2017, so his M-1 shows that.

If they were not an employee then they would be considered self employed. Self employed individuals do not need work authorization.

Generally an ITIN is requested when they have a tax reason (such as filing). There are exceptions for requesting the ITIN with no tax return attached, so yes, a student could apply for an ITIN now.

Customer: replied 4 days ago.

Thank you

You are most welcome.
A positive 5 star rating is appreciated so I get credit for the response.

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