How do I take 1099 being on H1

[krisna]

Hello,

I have a question in regard to the below situation:

I am on H1 with X company and at the present I am working in a project through, Y company as a layer between my X company and the actual client ( Myself < X < Y < client).

The situation is that the Y company has offered me to pay a part of the money they are getting and show the reason as I have provided services to them.

So the actual question, is it ok to take 1099 being on H1 and will it be considered as second job.

Please suggest me.

Your reply is highly appreciated.

Thanks

Krisna

[immihelp]

You can't take 1099 like that. That would be considered like a second job without USCIS authorization.

[KRJ]

1099 while on H-1

Please advise.
My employer owns several companies and I am working on
H-1 B for one of his companies. Is it okay to get an
1099-MISC from one of his other companies (Kind of bonus, described on the 1099-MISC as Non-employee compensation). There is no
distinction between the work I do, I work from the
same location and for the same company, which he uses
for other companies..The name and address of this
other company is different than that sponsered by H-1
B. He is also filing GC from the H-1 B approved
company. I have received one 1099-MISC for last year (2004) and I filed it as self employment using Schedule C-EZ. I was not sure last year but I have received this year too and I want to make sure before I file. Does this 1099-MISC affect my H-1B, future
immigration prospects and would I face any problems
during the process. My employer feels and says it is absolutely fine to do that way, as both the companies are owned by him. How do I know if we are right. I hope I made some sense..Please advise

[marjen]

What will happen then if you have already filed a 1099 while you are on H1B status? What are the consequences?

I would appreciate any info on this.

Thank you

MarJen

[leifbooger]

For Krisna, I think if the Y company is an indian company with a branch in India., you can negotiate with them to pay you that part amount in India. You would need to get an Indian tax ID which any chartered account can do for you. In India, you have the freedom to get paid from anyone. Am not sure if this will work though. Just an idea.

[rizviks]

Consequences of 1099 on h1B with EAD and I-140 approved

What will happen then if you have already filed a 1099 while you are on H1B status? What are the consequences?

I would appreciate any info on this.

Thank you

MarJen

Marjen, were you able to find an answer to your problem. How was the situation resolved.

Forum:

I am in the same situation currently and request help finding a solution. Is there a way to transfer the 1099 income to W2 because they both were issued by the same company? Does this situation in any way jeopardize my 485.

Thanks,
Riz

[txh1b]

Why did the company pay you on a 1099? These consulting companies try to reduce the amount of employment taxes paid to the govt and in return put the employees in trouble.

1099 income can be changed to W2 income if the company truly wants to correct it, it will issue a corrected W2 and you have to file an amendment tax return.

It all depends on why the 1099 was issued in the first place.

[Jeff4cpa]

This is a very thorny issue. Marjen, if you already filed your return with a 1099 while on H1b, I recommend going to your employer and having him/her amend the payroll tax returns to take the money as W-2 wages. If your employer refuses to do so, all you need to do is get the state unemployment agency involved. They hate it when employers pay employees using 1099. You would then amend your tax return with a 1040X. I also recommend consulting with a tax advisor who is familiar with immigration issues.