US resident Alien on TN - work performed for non-tn company
Moderator: Mark T Serbinski CA CPA
US resident Alien on TN - work performed for non-tn company
I'm currently a US resident alien on a TN visa for company A. I performed work for US company B during that time as self-employment connected to canada. Should I fill out a W-9 and receive a 1099 or should I give them a W-8eci or otherwise?
Once in TN status, all other work performed in any way connected to US firms MUST also be in TN status. You worked illegally.
For taxes: Since you are a US resident alien, you should be issued a 1099.
For taxes: Since you are a US resident alien, you should be issued a 1099.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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CalGreenCard
- Posts: 14
- Joined: Mon Jan 18, 2010 10:21 pm
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CalGreenCard
- Posts: 14
- Joined: Mon Jan 18, 2010 10:21 pm
[quote="tax95"]perhaps an odd question... but what if all of the money was returned to the company? (it's not a very large amount).[/quote]
I'm not 100% clear whether this work was legal from an immigration perspective or not--as per your previous question it was certainly legal if actually performed in Canada.
If it were to have been illegal, however, returning the money wouldn't make it legal. If a particular type of job is ordinarily performed for pay, rather than on a volunteer basis, when performed by US citizens--then it cannot legally be performed, for free or for pay, by unauthorized non-citizens. The fact that you previously accepted money pretty much shows that this is a for pay kind of job, not a volunteer kind of job. You can't suddenly make it legal by returning the money and pretending it is a volunteer job.
Since you are a US tax resident, you would be taxed on that basis even if the work was performed in Canada. Since you presumably have a US SSN, you would indeed just provide that on Form W-9 and expect to get a 1099. Form W-8 addresses whether income is "effectively connected" with a US trade or business--a distinction that is relevant for tax nonresidents but unimportant for tax residents.
If the amount was less than $600, they are not required to provide a Form 1099. If they fail to issue a Form 1099, you still would report the income as though it were 1099 income.
I'm not 100% clear whether this work was legal from an immigration perspective or not--as per your previous question it was certainly legal if actually performed in Canada.
If it were to have been illegal, however, returning the money wouldn't make it legal. If a particular type of job is ordinarily performed for pay, rather than on a volunteer basis, when performed by US citizens--then it cannot legally be performed, for free or for pay, by unauthorized non-citizens. The fact that you previously accepted money pretty much shows that this is a for pay kind of job, not a volunteer kind of job. You can't suddenly make it legal by returning the money and pretending it is a volunteer job.
Since you are a US tax resident, you would be taxed on that basis even if the work was performed in Canada. Since you presumably have a US SSN, you would indeed just provide that on Form W-9 and expect to get a 1099. Form W-8 addresses whether income is "effectively connected" with a US trade or business--a distinction that is relevant for tax nonresidents but unimportant for tax residents.
If the amount was less than $600, they are not required to provide a Form 1099. If they fail to issue a Form 1099, you still would report the income as though it were 1099 income.
Sounds fishy.
In future make sure any work you perform in US is covered by its own TN.
The manner in which you are paid, where the money is sent, and even IF you are paid, as cal said, mean nothing. Work performed in US for US clients/employers/facilities by an existing TN holder, must be done with another TN.
Do not confuse this with the right that Cdn residents have to 'go down to US on business', since that is done on B1 status. An active TNer can't do work a B1 does, since one can't mix statuses, one is in effect violating their TN.
In future make sure any work you perform in US is covered by its own TN.
The manner in which you are paid, where the money is sent, and even IF you are paid, as cal said, mean nothing. Work performed in US for US clients/employers/facilities by an existing TN holder, must be done with another TN.
Do not confuse this with the right that Cdn residents have to 'go down to US on business', since that is done on B1 status. An active TNer can't do work a B1 does, since one can't mix statuses, one is in effect violating their TN.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best