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Tax Question 1099-MISC

Discussion in 'BlackHat Lounge' started by raotnv, Apr 15, 2010.

  1. raotnv

    raotnv Junior Member

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    Any body around here with H1B Visa who are earning through affiliate marketing. I keep confusing about this thing by hearing so many things from forums. Some body said I can't have 1099-misc income while holding H1B visa. Some others say it is fine as long as you have your regular jobs. I really really appreciate your thoughts on this from other people who are having H1B visa.

    Thanks
    Rao
     
  2. CEPI

    CEPI Power Member

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    Technically the laws regarding the H1B say that you cannot be self employed and all online marketing income (well most like adsense, affiliates, cb, etc) are considered self employed businesses.

    The following was on the AdSense forums:
    Attorney Murthy : "A person on an H1B is not allowed to work on a 1099
    at all. One who is on an EAD is allowed to work as an independent
    contractor if s/he is the I-485 dependent on the EAD and not the
    principal applicant for the GC, to be on the safe side. If the total
    time working was less than 180 days, there is possible hope to obtain
    the I-485 in the U.S. Otherwise, it adds complications and will not
    generally allow the person to obtain an approval of the I-485 from
    within the U.S. You should consult an immigration attorney to discuss
    this issue since it could have serious consequences. "
    So I guess I'm sorry to drop the bad news.... :(
     
  3. raotnv

    raotnv Junior Member

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    I saw those messages already. I am trying to explore some alternative ways to do it legitmately. I know that lot of people already doing these kind of earnings while holding H1B. For example they can take their friends help to register the firm forward these earnings to that firm and act as a passive investor to that firm some thing like that.
     
  4. CEPI

    CEPI Power Member

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    If you are making a significant amount that would warrant setting up a corp, just pull up a shelf corp with nominee directors, and pay yourself as a "consultant" to the marketing firm that is US based. That way you have no link to your name being a director on the corp and you can have it pay you as an outside consultant.

    There are definitely ways to skirt the situation if you may be losing significant amounts of money, I just didn't know how in depth you wanted to get.
     
  5. raotnv

    raotnv Junior Member

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    Thanks for your thoughts cadkin. Any body else who are having H1B and earning on IM?.