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HELP! A Nigerian Missionary and tax form 1099 misc.?
I have a Nigerian missionary living with me. He worked in D.C. last year and recently received form 1099 misc. He is on an R1 visa and was doing missionary work. The form states $4,650 in box 7. Is he required to pay taxes on that?
Also, he showed me his pay stubs. On the pay stubs for the majority of the year the stubs said: Federal and State exemption: 99. The other part of the year they said exemption: 1. This doesn't make sense to me. Is this normal?
1 Answer
- Anonymous1 decade agoFavorite Answer
Yes, he must report the 1099-Misc. The only question is whether or not he's considered a resident alien or not. Resident aliens pay SE tax, Non-Resident Aliens do not. He reports the 1099-Misc on schedule C.
Use the substantial presence test to make the determination of whether or not he met the test or not. If he meets the 183 day test over the last 3 years, he's resident and files a 1040. If he doesn't meet the test, he files a 1040NR.
The W-2 are cheats. He put down 99 exemptions to guarantee had had little or no withholding. Even as a non-resident his income was more than $3400--and it certainly was!--he was supposed to put single 0 or single 1 only. (His cutoff as a resident would be a mere $400 due to the SE income.)