Fuzzy on 1099
Moderator: Mark T Serbinski CA CPA
Fuzzy on 1099
Hello, I'm still a little fuzzy on the language regarding how a 1099 is interpreted. I'm interested in contracting my services with a company who will issue a 1099 against my social security number. My accountant says that is fine. Now, here's where I'm puzzled - When filing a tax return for that year when the 1099 was issued, one files the income on a Schedule C. This form is used by "Self Employed" individuals. This sounds like a conflict against the spirit of NAFTA defining TN requirements and eligibility. Does anyone have any insight regarding the above?
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Mark T Serbinski CA CPA
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Hi Gerry:
According to IRS rules, you would file a schedule C with your 1040 or 1040NR, depending on your status in the U.S.
Although it is not permitted to be "self employed" on a TN visa, there is normally no problem as long as you only provide services for the one company which sponsored your TN. In this way you are not truly "self employed", since you are not offering your services to others.
Regards,
Mark T. Serbinski, CA, CPA
According to IRS rules, you would file a schedule C with your 1040 or 1040NR, depending on your status in the U.S.
Although it is not permitted to be "self employed" on a TN visa, there is normally no problem as long as you only provide services for the one company which sponsored your TN. In this way you are not truly "self employed", since you are not offering your services to others.
Regards,
Mark T. Serbinski, CA, CPA