Sole Proprietorship and non-resident tax status

[maciver]

What is the name of your state? FL

Hi. I have just received my interim EAD card while waiting for my application for permenant residency on the basis of marriage to be processed. I am about to go into business as a sole proprietor (I believe I was advised on this list that that would be perfectly ok given my circumstances). My question relates to my tax obligations. To date, as a non-resident alien, I have not been liable for medacaid or social security tax. I believe that my tax status will not change in this regard until January 2006. I was wondering how I deal with this issue under self employment. I have also posted this message to the Immigration Law forum in case it would be more appropriate to have done so.

Thanks

 

[Snipes5]

The circumstances under which a person is not liable for Medicare/SS tax are extremely narrow.

Since your intent is to become a permanant resident, and it is likely that you have already met the physical presence test with regard to resident status for TAX purposes, assume your taxes are just like those of every other US Citizen, and file accordingly.

Immigration doesn't like it when someone who is attempting to attain permanent resident status tries to take a treaty position to avoid taxes.

Also note that if you are married to a US citizen, you are free to file a joint return and be treated as a citizen for tax purposes. This would be wise, given your immigration status.

Snipes