Hello,

I am a resident of India, I have been in the US from Aug 2004. My wife has been in the US since Aug 2005. I just finished my Masters and am working full time in OPT status. My wife is still in F1 status. Should my employer cut Social Security and Medicare taxes? We wanted to file in Married status. Please help!

Thanks,
Harsh

Harsh:

Since you are still F-1 status (presumed because you are on an OPT), you should file as a non-resident alien (Form 1040NR).

Since you are Indian, you can claim your wife as a dependent AND claim the $5,000 standard deduction for 2005. You should also file Form 4483 with the tax return.

Talk to your employer about being exempt from Social Security and Medicare taxes. Ask that he stop withholding the Social Security and Medicare taxes. If he refuses, get the refusal in writing, as you will need it when you request a refund of the Social Security and Medicare taxes. You should Form 483 to make that claim for refund.

Contact me at dpmtax@mail.com if you need help with this process.

You should File F