I got a 1099-Misc from my employer, which means I was considered as a self-employed contractor instead of their employee. I am a international student from China, and in article 20(c) US-China income tax treaty, it looks like I can claim it no matter whether I'm a employee or self-employed.
So, I followed the instruction online and entered (-5000) under Fedural Taxed/Less Common Income/Miscellaneous Income 1099A, 1099C/Other Reportable Income. However that did not change the amount of tax due at all. It's because my gross receipt didn't change and therefore the self employment tax didn't change either.
Should I just deduct this $5000 from my gross receipt? Like, if my actual income was $8000, should I just say my gross receipt was $3000? Or should I enter this -$5000 as something else?
