Hi,

I have been working under F1/OPT since Oct 2006. I have stayed here long enough and thus considered resident for taxing purposes.

1. However, my current employer, by policy, doesn’t withhold FICA (social security taxes) from F1 employees. So on my W-2, the social security tax box is blank all together. So my question is, given that I am considered a resident for taxing purposes, am I required to pay FICA? If so do I have to accommodate for the FICA somewhere myself? How should I reflect that on the 1040 Form (I don’t even know how much FICA is)?

2. Also, if I was still in school before Sept 2006, and my parents abroad sent me money to pay for my non-resident (per the policy of University of California) tuition [which was quite a significant amount; about $7000 per quarter], can I file for any kind of credit even though I didn’t come up with that money for tuition myself? If so, what kind of credit should it be?

3. If I only received less than 4 dollars for interest from my saving account, do I still have to report it? (I didn’t get any interest-tax-form from my bank)

4. Finally, what will happen if I mistakenly filed my tax return incorrectly? Will I be penalized? If I still owe them money, what will happen?

Thank you so much!

-- Ken

AtlantaTaxExpert

Ken:

When did you FIRST arrive in the U.S.?

superkenasking

I first came in Jan 1998. And I have been here pretty much all the time except Jun 2004 ~ Sept 2005 when I was in Japan for a school year.

2006: Jan 9 ~ March 23, March 28 ~ Dec 31 : 352 days
2005: Sept 11 ~ Dec 16 : 112 days
2004: Jan ~ Jun : ~157 days
2003: Jan ~ Dec : ~349 days
1998~2002: Full Year except summer vacation (mid Jun ~ mid Sept): 272 days x 5 yrs

Thanks. Let me know if you need more information.

- Ken

AtlantaTaxExpert

Ken:

You are a resident alien. Any exemption granted under a F-1 or J-1 visa has long since expired.

1) Tell your employer about your resident alien status. He will not take the FICA taxes for 2006 (he would pay a huge fine if he did), but he will probably collect the FICA taxes from 1 January 2007 onward. You do NOT pay FICA taxes on your annual tax return.

2) Yes, you CAN claim the Education Credits or Deduction, even though your parents provided the tuition money.

3) It is okay not to report so small an amount.

4) You may be penalized if, as a result of filing incorrectly, you did not pay taxes that were due. If you over-paid, nothing will happen to you.

superkenasking

That is very helpful! Thank You! I really appreciate your help! AtlantaTaxExpert you are the best!

-- Ken

AtlantaTaxExpert

Glad to help!

Tips are appreciated! ;-)