Earning Royalties on H1B via 1099

[orientresolve]

I know that similar question would have been asked several times but I would like to be bit more specific on my situation where I received royalties on my photographs and then received 1099 from Getty Images being on H1B.

I came across several advice over the internet but I need to know if I shall report this during tax filing? One of the lawyer who does corporate immigration for a very large company mentioned that I should travel outside the country and this would waive this off however I couldn't really understood by what does he means.

Could you please throw some light on this?

[JoeF]

If you get a 1099, you of course have to report that in your tax returns.

You may have an issue with immigration based on working outside of your employment, if you are running this photo-selling business while in the US on H1.

[Attorney_25]

This depends on whether you are doing "work" in the US related to your photography business. If so, you have a status issue. If not, you can receive payments.

Leaving the US and re-entering resolves status issues in some situations, but when you come to re-enter if CBP thinks you will be working illegally based on past illegal work, you may be denied admission.

Lying on your taxes can cause you serious problems, immigration and criminal. Consult with a CPA or tax attorney as to whether you are required to report certain earnings, and behave accordingly. That is a separate issue from status/leaving/re-entering etc.

[orientresolve]

Attorney_25,

It is not a "work" in the US related to photography business. On the 1099-MISC, the amount of $150 in the mentioned in box 2 (Royalties) and $9 is mentioned in box 4 (Federal income tax withheld).

I am certainly declaring this income in my tax filing by consulting a tax consultant.

Thanks for your reply.