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Level 1
posted Jun 8, 2020 9:59:59 AM

Going from H1B to non resident alien

Hi, 

 

I am a Malaysian, currently on a H1B, until June 30th (and have been working here on H1B since 2015), I will be returning to Malaysia on July 6th, and will be working for a telemedicine company, and will be paid as an independent contractor/1099. 

My questions are 

 

1) Will I be paying US taxes on my 1099? I assume I would since I think I am considered a resident alien for 2020 since I was here for more than 183 days.  

2) Would I be paying taxes on 1099 in 2021? 

3) This is a long shot, does anyone here know if I would be taxed twice(by US and Malaysia) this year since I think I will be paying US taxes on my 1099 for 2020, and will be home. 

0 2 607
2 Replies
Level 15
Jun 21, 2020 8:57:58 PM

@XCross -- (1)  when you leave the USA, your work visa is terminated  and therefore you become a Non-Resident Alien thereafter. 

(2) so for the year 2020, you will be a Dual Status  taxpayer thus:

    (a) you file a form 1040  covering your world earnings for the period  Jan 1st through the day your visa is terminated / you leave the US soil

    (b) you also file a form 1040-NR for any US source income  for the rest of the year and in any subsequent years that you have income from the USA

(3)  NOTE -- when you work on foreign soil for an US entity  ( for example  your current US employer pays you as a contractor  but you perform the work in foreign country ) your income is sourced to the foreign country -- it is NOT US sourced income.  Therefore  USA cannot tax  this not can your employer issue a 1099 to you, even if you have a SSN.

 

If you need more help on this. please let me know 

Level 1
Jun 22, 2020 12:06:33 AM

Hi @pk

 

Thank you so much! 

That was very helpful.