TN Visa Employed and Doing Contracts

[bichonfrise74]

Hi,

I'm currently employed in the US. I have a TN visa. Last year, I started to do some contractual work and now that company is going to send a 1099 tax form. The amount of money that I received from the contractual work would be less than $1,500.

I just realized that I cannot do contractual work since I'm currently employed and since TN is a employer-based visa. So, I'm not sure what to do next? Should I file the tax related to the contractual work? What is the implication if I file or not file with regards to USCIS?

Thanks.

[Steven]

The IRS and USCIS don't talk to each other so I wouldn't get too wound up about it although technically you have violated your TN-1 status.

Your bigger problem is the tax paperwork, 1099 may not have been the correct method for them to use if you file in the US as a non-resident on 1040NR. Should have used 1042 instead.

Have a read of IRS publications 515 and 519 for more information, does depend on the situation, i.e. where the work was performed, whether you file as a resident or non-resident in the US.