J-2 visa question

[garciabeck]

Asking for a friend:

This friend is in the United States on a J-2 visa (because his wife is here studying on a J-1).  He is working for two separate U.S.-based companies as an independent contractor (he was hired by both before actually moving to the U.S.) 

One of the companies had him fill out a W-9 once he moved here and is paying him in a U.S. bank account

The other company has said they will continue paying him in his home country bank account via wire transfer. He has inquired whether this is legal and they've essentially ignored him and his questions. 

He wants to comply with all U.S. tax laws and is wondering if he needs to declare the income from this second job, where he is being paid in his home country. 

Hope this makes sense. Appreciate any insight. 

[pk]

@garciabeck , from your post  I am going to assume the following:

(a) the person in question  is on J-2 and has workpermit 

(b) the person has SSN associated with the workpermit

(c) 2021 is his first year on J-2 and is going to meet the substantial presence test i.e. he will be filing a form 1040

 The fact that he has two  different payors  depositing payments in two countries is not material here -- what matters is that the work is being done in the USA and hence the income is US sourced and taxed by the USA.  Suggest you tell us his home country also because  a tax treaty between the USA and that "other" country may indeed impact taxability of income.

The reason for assuming that the person will meet  Substantial Presence Test is because TurboTax ONLY supports  form 1040 and NOT 1040-NR-- and not trying to determine whether the person is subject to world income or US sourced income only.

Does this answer your query ?

[garciabeck]

Thanks so much for such a quick response, this is very helpful. All of your assumptions are correct.  He has a work permit and definitely meets the substantial presence test. His home country is Colombia.