Question details
I worked for ABC Company for last 3 years. They extended my H-1B at the end of 3rd year. But during my 4th year (this year) I changed my employer and updated my H-1B too. At the same year, ABC Company was sold to another company. ABC Company decided to give bonus to its current and formal employees. I got a bonus
check from ABC Company. Since, I was not on their payroll they issued me a 1099
misc form for tax purposes for this tax year. My understanding is H-1B employee
can file only W-2 form with current employee. If I file my tax with this 1099 misc
form from ABC Company? Am I violating the H-1B rules?
ANSWER
See clip from Attorney Rajiv S. Khanna's conference call video that addresses this question.
FAQ Transcript:
I don't see any problem. The reason being, that payment even though they are paying you after you left the company is not the violation of your status. It is reflective of the amount already earned. While you have H-1 with these folks you earned these amounts. Now, 1099 usually a bad idea but in your circumstances I don't see it as problem. Usually you can only do W-2 but in this particular case I am not quite sure how USCIS is going to look at it. What questions they are going to ask you.
But I can tell you this in the ultimate analysis after you have responded and made clear that , the money given as part of a bonus which was earned by you , you had a H-1 with that company . So it's not a new work. I don't think you will have any problem. So, legally you are in good position.