Hi @pk I have a question of a similar nature. I am a Ukrainian national considering applying for a U4U scheme visa to the US. I am trying to understand the taxation rules for self-employment under such circumstance
If I come to the US under the U4U program and get paid on a 1099 basis I should file returns as self-employed, right? Can you please verify or correct my findings? As far as I understand until I meet the substantial presence criteria I will be considered a nonresident alien and as such I will not have to pay the FICA self-employment 15,3% tax. Say, I arrive in the US in November 2023 and have an average monthly income of $5000 on a 1099 basis. Until roughly somewhere in June 2024 I will be a nonresident alien. I will have to pay the standard federal and state (NJ) tax on my 1099 income as any US citizen but will be exempt from the self-employment taxes. And after June 2024 I will become a tax resident and will have to pay self-employment tax on my income earned after June 2024. Is this correct?
Also, I won't be able to claim the standard deduction until the next year after I become a tax resident, which in this example will be 2025?
Thank you for your help!
