Is it legal to work as a 1099 independent contractor while on CPT or OPT?

 

Is It Legal to Work as a 1099 Independent Contractor While on CPT or OPT?

✅ Yes, but only in certain cases. The legality depends on whether you are on CPT or OPT and the type of work you do.

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🔹 1099 Work on CPT (Curricular Practical Training) ❌ (Usually Not Allowed)

🚨 Most schools and USCIS do NOT allow independent contractor (1099) work on CPT.

✔ CPT must be tied to a specific employer and your academic program.
✔ You must have an offer letter from an employer before starting work.
✔ Self-employment or contract work (1099) is typically NOT permitted.

📌 Exception: Some universities may allow CPT for independent work if it's clearly structured within your degree program. Check with your Designated School Official (DSO).

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🔹 1099 Work on OPT (Optional Practical Training) ✅ (Allowed with Restrictions)

🎯 On OPT, you CAN work as a 1099 independent contractor—but only if:
✔ The work is directly related to your degree field.
✔ You maintain records of all contracts and work done.
✔ You work at least 20 hours per week to meet OPT requirements.

📌 You do NOT need an employer to sponsor you, but you are responsible for your own taxes.

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🔹 1099 Work on STEM OPT (24-Month Extension) ❌ (Not Allowed)

🚨 1099 contract work is NOT allowed on STEM OPT.
✔ You must have a formal employer-employee relationship with supervision.
✔ Your employer must be E-Verified and complete Form I-983 training plans.
✔ Self-employment or freelance work does NOT qualify.

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🔹 Risks of Doing 1099 Work Without Authorization

❌ Working as an independent contractor on CPT or STEM OPT violates your visa status.
❌ If caught, you could face visa denial, deportation, or future immigration issues.

🚀 Best Strategy:

• Still studying? Stick to employer-based CPT.

• On OPT? You can do 1099 work but keep records.

• On STEM OPT? Stick to W-2 employment.

📌 Need help choosing the right work authorization path? 😊