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F1 Visa - after 5 years - Social Security & Medicare Taxes

Asked Jan 3, 2012, 07:03 AM — 15 Answers
Doing PhD in US on F-1 visa since August 2007...
Getting salary from the university...

I understand that the tax status will change to resident alien this year (2012)... How about FICA taxes?

Thanks!

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15 Answers
tedcwfung's Avatar
tedcwfung Posts: 5, Reputation: 10
Junior Member
  
#11

Jan 16, 2012, 09:04 AM
I will be utilizing OPT starting later this year, then STEM after that. H visa may be foreseeable but won't know till 2+ years later. Closer connection option still ok?
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,866, Reputation: 3723
Senior Tax Expert
  
#12

Jan 16, 2012, 09:18 AM


Possibly.

Burden of proof for closer connevtipn is on YOU.

You will still have to pay FICA (Social Security & Medicare) taxes, and normally filing as a resident is a bettet option unless you have sognificant overseas income.
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tedcwfung's Avatar
tedcwfung Posts: 5, Reputation: 10
Junior Member
  
#13

Jan 16, 2012, 09:41 AM
Oh, I thought if my closer connection claim is accepted, I would be considered a nonresident alien hence exempt from FICA taxes?

Also, are the tax rates different for nonresident aliens than resident aliens? Why is filing as resident a better option?

At this point, what should I tell my employer regarding my alien status for 2012?

Thanks so much for answering my questions, AtlantaTaxExpert!
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tedcwfung's Avatar
tedcwfung Posts: 5, Reputation: 10
Junior Member
  
#14

Jan 16, 2012, 09:43 AM
I am currently on part-time CPT, by the way
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,866, Reputation: 3723
Senior Tax Expert
  
#15

Jan 16, 2012, 09:51 AM


Filing as a resident is better because you are eligible for more deductions & credits.

The FICA exemption ends after five years for F-1 students as a matter of U.S. tax law whether you retain non-resident status or not.
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MukatA's Avatar
MukatA Posts: 7,105, Reputation: 963
Tax Expert
  
#16

Jan 16, 2012, 06:06 PM


After 5 years on F1, you must pay FICA taxes even if you claim closer connection option.
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