H2A Visa and SS

Today TaxMama hears from Duncan who is taking good care of a client. “My client from Mexico lives in the US from April until December every year. He is working here under an H2A agricultural visa. As I understand, since he is here for 9 months, he is a resident alien according to the substantial presence test. However, his earnings under the H2A visa are not subject to SS tax. His employer gives him a 1099 with earnings in box 7, nonemployee compensation, which normally is subject to the tax. What is the best way to handle this situation?


Hi Duncan,

You’re right. He is exempt from Social Security taxes.

Pick up the income on Schedule C and any related expenses. Then override the Schedule SE and write TOTALIZATION in the income line.

Or, enter -0- on the income line and include a disclosure statement about his H2A visa and the visa number. You should be fine.

You may need to check with your software company to see if they already have a built-in procedure for this.

And remember, you can find answers to all kinds of questions about aliens and other tax issues, free. Where? Where else? At www.TaxMama.com.

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