What are my tax obligations as a nonresident self-employed worker in the U.S.?
💼 Working for yourself in the U.S. as a nonresident? Here’s what you need to know.
Being self-employed can be rewarding — but also confusing, especially when you’re in another country and unfamiliar with U.S. tax rules.
If you’re a nonresident (for example, on an F-1, J-1, or other temporary visa) and you earn money as a freelancer, independent contractor, or business owner, you have specific tax responsibilities.
This guide explains how self-employment taxes work for nonresidents, key deadlines, and how to stay fully compliant.
🧾 Who is considered self-employed in the U.S.?
The IRS defines a self-employed individual as someone who:
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Runs their own business as a sole proprietor or independent contractor
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Is a partner in a business partnership
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Works for themselves, even part-time
If you earn income from your own services rather than being paid on payroll, you are considered self-employed.
Examples:
🎨 Graphic designer • 💻 IT consultant • ✍️ Writer • 📸 Photographer
💰 What is self-employment tax?
Self-employment tax covers Social Security and Medicare contributions.
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Tax rate: 15.3% total
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12.4% for Social Security
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2.9% for Medicare
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Applies if your net earnings (income minus expenses) exceed $400 in a year.
👉 The 2025 Social Security wage cap is $176,100, meaning you won’t pay Social Security tax above this income level.
While most nonresident employees on payroll are exempt from FICA (Social Security and Medicare), self-employed nonresidents are not.
📅 When is the tax deadline?
Your U.S. tax return must be filed by April 15, 2025.
If you owe taxes, you must also make quarterly estimated tax payments using Form 1040-ES to avoid penalties.
🧮 How do I calculate my self-employment tax?
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Determine your gross income (all earnings).
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Subtract your business expenses — such as equipment, travel, or training.
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The remaining amount is your net profit.
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If that amount is $400 or more, you must file and pay self-employment tax.
You’ll report this income and expenses on Schedule C as part of your Form 1040-NR (nonresident tax return).
👩💻 Freelancers and F-1 OPT students
If you’re on OPT (Optional Practical Training), you can work for yourself only if your self-employment is directly related to your field of study and approved by your school’s international office.
❗ Working without authorization may violate your visa conditions.
💸 Common deductions for self-employed nonresidents
You can reduce your taxable income by claiming business-related deductions, such as:
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Phone, internet, and software used for work
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Office supplies and equipment
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Business meals and travel expenses
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Educational costs that enhance your professional skills
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Mileage for business use of your car (56 cents per mile for 2025)
Keep receipts and documentation for all deductible expenses.
📄 Information returns
If you paid anyone more than $600 for services, you must file an information return (Form 1099-NEC or 1099-MISC) to report these payments to the IRS.
📑 How to file your U.S. tax return
Filing as a nonresident is different from filing as a U.S. resident.
You’ll generally need to file:
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Form 1040-NR (U.S. Nonresident Alien Income Tax Return)
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Schedule C (Profit or Loss from Business)
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Form 8843 (if required to report visa status)
You may also have to file a state tax return depending on where you earned income.
💡 Need help with your nonresident self-employment taxes?
At J1 Summer Tax Back, we make U.S. tax filing simple for nonresidents — including freelancers and independent contractors.
With our service, you can:
✅ Determine your residency status
✅ Calculate your self-employment and income taxes
✅ Prepare both federal and state returns correctly
✅ Apply for an ITIN if you don’t have one
✅ Get 24/7 support from our tax experts
🧮 Stay compliant and confident — file your nonresident self-employment taxes the easy way with J1 Summer Tax Back.