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3) Taxes & Compliance
W-2 vs 1099 income
When you get paid, you will receive a document at the end of the year.
- W-2 (Employee): This is for a standard job. Your boss takes taxes out of your paycheck automatically. This is the safest way to get paid.
- 1099 (Contractor): This is for freelance work. Warning: No taxes are taken out. You must save about 25–30% of this money yourself to pay the IRS later.
- As an F-1 student, you can generally only have W-2 income from authorized CPT/OPT jobs. Doing 1099 gig work (like Uber or DoorDash) without specific authorization is a violation of your visa.
Free Resource: What's The Difference Between W-2 and 1099 Income? | Employee vs. Self-Employed
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