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Tax year 2026Checked

Paid on a 1099 as an F-1 student? How contract income is taxed

Freelance work or CPT paid on Form 1099-NEC: how it reaches Form 1040-NR, and why a nonresident alien usually owes no Social Security or Medicare tax on it.

By F1TaxReturn Tax Team. Published . Facts checked against the sources below on . 5 minute read.

In short

  1. A nonresident alien generally owes no self-employment tax on 1099-NEC pay, unless a social security agreement covers them under the US system (Publication 519, 2025).
  2. Contract profit is taxed at the 2026 graduated rates, 10% on the first $12,400, and moves from Schedule C line 31 to Schedule 1 line 3 to Form 1040-NR line 8 (2026 drafts).
  3. A US client may withhold 30% and report the pay on Form 1042-S with income code 17; you claim that tax on line 25g of Form 1040-NR (2026 draft).
  4. With no wages as an employee subject to withholding in 2026, your Form 1040-NR is due Tuesday, June 15, 2027; with such wages, Thursday, April 15, 2027.
  5. The 2026 Form 1040-ES (NR) says you usually must pay estimated tax if you expect to owe at least $1,000 after withholding and refundable credits and your withholding fails its 90% or 100% test.
Contents, 9 sections

F-1 students who are nonresident aliens for 2026 owe income tax at graduated rates on contract work in the US, but usually no Social Security or Medicare tax (Publication 519). The profit goes on Schedule C, then Schedule 1 line 3, then Form 1040-NR line 8 (Form 1040-NR instructions).

Ask your designated school official whether F-1 rules allow the work. The 2026 filing guide covers the rest of the return.

Do I pay Social Security tax on 1099 income?

While you are a nonresident alien, you generally owe no self-employment tax, the Social Security and Medicare tax of the self-employed (Publication 519, chapter 8). The exception is a social security agreement that covers you under the US system (2025 Schedule SE instructions).

Watch out

If your country has a social security agreement with the US

These agreements generally make you pay only to the country where you live, so a student who lives in the US may be covered by the US system. The 2025 Schedule SE instructions list 30: Australia, Austria, Belgium, Brazil, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, South Korea, Spain, Sweden, Switzerland, United Kingdom and Uruguay. If yours is one, ask the Social Security Administration or a tax professional before you file.

Key facts

Self-employment tax while a nonresident alien
None, unless a social security agreement covers you under the US system
Where the profit goes (2026 drafts)
Schedule C line 31, then Schedule 1 line 3, then Form 1040-NR line 8
Income tax on the profit in 2026
10% up to $12,400, 12% to $50,400, 22% to $105,700
30% withheld by a client
Form 1042-S, income code 17; claimed on Form 1040-NR line 25g
Due date if you had no 2026 wages subject to withholding
Tuesday, June 15, 2027
For
F-1, J-1, M-1 and Q students who are nonresident aliens for 2026 and were paid as contractors for work done in the US, on Form 1099-NEC or Form 1042-S.
Not for
Resident aliens for 2026, who pay self-employment tax like US citizens and file Form 1040. This guide covers the federal return only, not state returns or whether F-1 rules allow the work.

Where does a 1099-NEC go on Form 1040-NR?

Box 1a of Form 1099-NEC goes on Schedule C line 1, where you subtract your business expenses. The net profit on Schedule C line 31 then moves to Schedule 1 line 3 and on to Form 1040-NR line 8.

Ana's $9,000 from Form 1099-NEC box 1a, minus $600 of expenses on Schedule C, leaves $8,400 of net profit for Schedule 1 line 3 and Form 1040-NR line 8. No Schedule SE.The path of Ana's 2026 contract pay, for a student who is a nonresident alien. Form 1099-NEC box 1a: $9,000 from two clients, $5,000 and $4,000. Schedule C: line 1 gross receipts $9,000, line 28 expenses $600, line 31 net profit $8,400. Schedule 1 line 3, business income: $8,400. Form 1040-NR line 8, additional income: $8,400. Schedule SE is not needed: a nonresident alien owes no self-employment tax unless a social security agreement covers them under the US system. Line numbers are from the 2026 drafts of Schedule C, Schedule 1 and Form 1040-NR, and are the same on the 2025 forms.How 1099-NEC pay reaches Form 1040-NRExample: Ana, an F-1 nonresident alien, tax year 2026Form 1099-NEC, box 1aTwo clients: $5,000 and $4,000$9,000Schedule CLine 1, gross receipts$9,000Line 28, expensesminus $600Line 31, net profit$8,400Schedule 1, line 3Business income, added into line 10$8,400Form 1040-NR, line 8Taxed at the graduated rates$8,400No Schedule SEA nonresidentalien owes noself-employmenttax unless asocial securityagreementcovers themLine numbers: 2026 drafts, the same as on the 2025 formsAna's $9,000 from Form 1099-NEC box 1a, minus $600 of expenses on Schedule C, leaves $8,400 of net profit for Schedule 1 line 3 and Form 1040-NR line 8. No Schedule SE.The path of Ana's 2026 contract pay, for a student who is a nonresident alien. Form 1099-NEC box 1a: $9,000 from two clients, $5,000 and $4,000. Schedule C: line 1 gross receipts $9,000, line 28 expenses $600, line 31 net profit $8,400. Schedule 1 line 3, business income: $8,400. Form 1040-NR line 8, additional income: $8,400. Schedule SE is not needed: a nonresident alien owes no self-employment tax unless a social security agreement covers them under the US system. Line numbers are from the 2026 drafts of Schedule C, Schedule 1 and Form 1040-NR, and are the same on the 2025 forms.How 1099-NEC pay reachesForm 1040-NRExample: Ana, F-1 nonresident, 20261099-NEC, box 1a$9,000Two clients: $5,000 and $4,000Schedule CLine 1, gross receipts$9,000Line 28, expensesminus $600Line 31, net profit$8,400Schedule 1, line 3$8,400Business income, into line 10Form 1040-NR, line 8$8,400Taxed at the graduated ratesNo Schedule SENo self-employment tax for anonresident alien unless a socialsecurity agreement covers themLine numbers: 2026 drafts, the sameas on the 2025 forms
Only the profit, after expenses, reaches Form 1040-NR.

The line numbers are the same on the 2025 forms and the 2026 drafts. Pay for work done abroad is covered in income from your home country.

Worked example: Ana, F-1 student in Florida, first arrived in 2024

Ana comes from a country with no US tax treaty and no social security agreement. Her only 2026 US pay came from two design clients, who sent Forms 1099-NEC for $5,000 and $4,000. She spent $600 on software used only for that work. Like most nonresident aliens, she gets no standard deduction (who gets $16,100).

Ana's 2026 returnAmount
Schedule C line 31, net profit: $9,000 minus $600$8,400
Federal income tax before any qualified business income deduction: 10% of $8,400$840
Self-employment tax$0

The 2026 rates are 10% up to $12,400, 12% to $50,400 and 22% to $105,700 (Rev. Proc. 2025-32). Nothing was withheld, so she pays it with her return. The 2026 Tax Table, not yet published, can differ by a few dollars, and the qualified business income deduction (line 13b of the 2026 draft) may lower the tax if she qualifies. Florida does not impose a personal income tax (Florida Department of Revenue).

Why did my client withhold 30%?

A US client that knows you are a nonresident alien may withhold 30% and report the pay on Form 1042-S with income code 17, for independent personal services (Publication 515).

The pay still goes on Schedule C, and you claim the tax withheld on Form 1040-NR line 25g (2025 form and 2026 draft). If Ana's clients had withheld 30% of $9,000 ($2,700), her refund would be about $1,860 ($2,700 minus $840), or more with the qualified business income deduction.

When is my return due if all my pay came on a 1099?

If your only 2026 pay came as a contractor, on Form 1099-NEC or Form 1042-S, your Form 1040-NR is due Tuesday, June 15, 2027, because that pay is not wages. If you also had wages subject to US income tax withholding, such as a W-2 job, it is due Thursday, April 15, 2027 (2025 Form 1040-NR instructions).

Were you paid wages in 2026 that are subject to US income tax withholding, such as an on-campus job, CPT or OPT? If a treaty exempted all of your pay, the Treasury regulations point to No.
  1. Monday, February 1, 2027Your W-2 is due
  2. Monday, March 15, 2027Your 1042-S is due
  3. Thursday, April 15, 2027Form 1040-NR, if you had wagesDue if you were paid wages subject to US income tax withholding in 2026, such as an on-campus job, CPT or OPT reported on a W-2. Attach Form 8843 to it.
  4. Tuesday, June 15, 2027Form 1040-NR with no wages, or Form 8843 alone YoursDue if you had no wages subject to US income tax withholding in 2026, for example only a taxable scholarship. If Form 8843 is the only thing you file, mail it by this day.

Your Form 1040-NR is due Tuesday, June 15, 2027. If Form 8843 is the only form you file, it is due that day too.

The 2027 filing season for Ana, whose only 2026 pay came on Forms 1099-NEC. Due dates for 2026 returns, from IRC 6072(a) and (c).

Any tax you owe is due the same day (2027 tax deadlines).

Do I need to make estimated payments?

Clients usually take no tax out of contract pay, so you may need to pay 2026 estimated tax with Form 1040-ES (NR). The 2026 form says you generally must if both apply:

  1. You expect to owe at least $1,000 for 2026 after withholding and refundable credits.
  2. You expect your withholding and refundable credits to be less than 90% of your 2026 tax or 100% of your 2025 tax (if that return covered all 12 months), whichever is smaller.

Ana's $840 is under $1,000, so she did not have to. With a W-2 job too, the form says a new Form W-4 with more withholding may replace estimated payments.

My CPT employer paid me on a 1099. Is that right?

A 1099-NEC for CPT work may be wrong: whether you were an employee or a contractor depends on how much the company controlled your work (IRS). You or the company can file Form SS-8 to have the IRS decide, which can take at least six months.

If you believe you were an employee and cannot get the form corrected, the 1099-NEC instructions say to report the pay as wages and attach Form 8919. That form works out Social Security and Medicare tax, which F-1 students do not owe on CPT pay while they are nonresident aliens (FICA on F-1 pay). Ask a tax professional before you use it. If you report the pay as wages, file by Thursday, April 15, 2027. Your income tax rates are the same either way (how CPT pay is taxed).

What to do next

  1. Collect every Form 1099-NEC, any Form 1042-S (due to you by Monday, March 15, 2027) and your expense receipts.
  2. F1TaxReturn does not prepare Schedule C. Use a paid preparer, the IRS forms by hand, or Sprintax, which says it cannot e-file a return with Form 1099-NEC (Sprintax, checked October 18, 2026).
  3. Mail Form 1040-NR with Form 8843 by Tuesday, June 15, 2027, or by Thursday, April 15, 2027 if you also had wages subject to withholding (where to mail them).

Questions students ask

Do F-1 students pay self-employment tax?

Not while they are nonresident aliens, unless a social security agreement covers them under the US system (Publication 519). From the first year as a resident alien, usually the sixth calendar year in the US, self-employment tax applies under the same rules as for US citizens. It also applies to pay received as a resident alien for work done earlier.

A client abroad pays me for work I do in the US. Is that US income?

Pay for work you do while you are in the US is usually US-source income, wherever the client is (Publication 519, Table 2-1). F, J, M and Q students can exclude pay from a foreign employer, but Publication 519 does not say whether a client who hires you as a contractor counts as one. Ask a tax professional before you leave that pay off your return.

Can I deduct expenses from my 1099 income?

Yes, on Schedule C, if they are expenses of the work and connected with your US business; the 2025 Form 1040-NR instructions allow only effectively connected income and expenses there. Most nonresident aliens get no standard deduction, so keep receipts for every business expense. Students from India who qualify under Article 21(2) can also take the $16,100 standard deduction.

Can F1TaxReturn prepare my return if I have a 1099-NEC?

No. F1TaxReturn does not prepare Schedule C, so it cannot prepare a 2026 return that includes contract income. Use a paid preparer, the IRS forms by hand, or Sprintax, whose site says a return with Form 1099-NEC is mailed rather than e-filed (checked October 18, 2026).

Sources

This guide is checked against these 13 documents, most recently on .

  1. Publication 519 (2025), U.S. Tax Guide for Aliens, IRS
  2. Instructions for Form 1040-NR (2025), IRS
  3. Instructions for Schedule SE (2025), IRS
  4. Schedule C (Form 1040) 2025, Profit or Loss From Business, IRS
  5. Schedule C (Form 1040) 2026, draft, IRS
  6. Form 1099-NEC (Rev. December 2026) and Instructions for Recipient, IRS
  7. Form 1040-NR (2026), draft, IRS
  8. Schedule 1 (Form 1040) 2026, draft, IRS
  9. Publication 515 (2026), Withholding of Tax on Nonresident Aliens and Foreign Entities, IRS
  10. Form 1040-ES (NR) (2026), U.S. Estimated Tax for Nonresident Alien Individuals, IRS
  11. Independent contractor (self-employed) or employee?, IRS
  12. Revenue Procedure 2025-32 (2026 tax rates), IRS
  13. Do I have to file a personal income tax return in Florida?, Florida Department of Revenue