Ask Experts Questions for FREE Help!
Ask    ||    Answer
 
Advanced  
 

Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
Free Answers in 3 Easy Steps

Register Now
3 Steps

At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.

Home > Money & Services > Taxes   »   FICA exemption

 
Thread Tools Search this Thread Display Modes
Question
 
 
#1  
Old Dec 28, 2006, 09:52 PM
sbrz5
New Member
sbrz5 is offline
 
Join Date: Dec 2006
Posts: 4
sbrz5 See this member's comment history on his/her Profile page.
FICA exemption

Hi,
Thank you much for answering my question.
I came to U.S on F-1 visa in august 2003. I have got my OPT in oct 2006 and it is going to be expired in oct 2007. I understood from your e-mail that i am exempted from FICA taxes. I have few questions regarding this.

1. i have heard that the exemption of FICA taxes will last for five year starting from the entering in to the united states is it right? If it is yes am i expempted from the FICA taxes until August 2008? But by that time i will be on H-1. Can we exempt from FICA even if we are on H-1? or only F-1 students are exempted from FICA taxes?

2. What documents or forms i have to provide to my employer to prove or show that iam exempted fromthese taxes.

Please help me by answering these questions also.

Sincerely

Reply With Quote
 
     

Answers
 
 
Old Dec 29, 2006, 07:17 AM   #2  
Senior Tax Expert
AtlantaTaxExpert is offline
 
Join Date: Feb 2005
Location: Atlanta, Georgia
Posts: 13,322
AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.
1) The day you convert from the F-1 to the H-1 or H-1B visa, that day to become liable for FICA taxes.

2) You need to show your employer a copy of your visa and show that the work with this employer is related to the field of study that you are pursuing in the U.S. For example, if you are pursuing a masters in software engineering and work on an OPT with a software company, you qualify for the exemption. If, however, you work part-time at a bookstore to earn some extra money to meet expenses, then that income from the bookstore is NOT related to your studies and therefore NOT exempt from FICA taxes.
  Reply With Quote
 
     
 
 
Old Dec 30, 2006, 12:56 AM   #3  
New Member
sbrz5 is offline
 
Join Date: Dec 2006
Posts: 4
sbrz5 See this member's comment history on his/her Profile page.
Quote:
Originally Posted by AtlantaTaxExpert
1) The day you convert from the F-1 to the H-1 or H-1B visa, that day to become liable for FICA taxes.

2) You need to show your employer a copy of your visa and show that the work with this employer is related to the field of study that you are pursuing in the U.S. For example, if you are pursuing a masters in software engineering and work on an OPT with a software company, you qualify for the exemption. If, however, you work part-time at a bookstore to earn some extra money to meet expenses, then that income from the bookstore is NOT related to your studies and therefore NOT exempt from FICA taxes.

Hi,
Thanks much for your answer. I am working in the same field. do i need to submit any other forms or documents from the irs website? I thought i have to submit form 843 is it right? Please let me know.

Sincerely.
  Reply With Quote
 
     
 
 
Old Dec 30, 2006, 10:54 AM   #4  
Senior Tax Expert
AtlantaTaxExpert is offline
 
Join Date: Feb 2005
Location: Atlanta, Georgia
Posts: 13,322
AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.AtlantaTaxExpert See this member's comment history on his/her Profile page.
You use Form 843 only if the employer refuses to refund the improperly-withheld Social Security and Medicare tax.

In the process, the FIRST step is to notifiy the employer of the error in withholding these taxes and formally request that they be refunded. This can be done with minimal effort on the employer's part up to the end of January 2007.

If the employer refuses, for whatever reason, you need to get the refusal in writing. Once you have that, you can then download IRS Pub 519 to read pages 42-48 and Form 843 to request the refund. See Internal Revenue Service.

If you need help, contact me at [email address].
  Reply With Quote
 
     

Your Answer
Email me when someone replies to my answer
Join Login





Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

 
Similar Sponsors


Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page

Similar Threads
Tax Exemption for Dependent
(12 replies)
Tax exemption for H4
(1 replies)
FICA Tax Exemption
(1 replies)
Tax exemption
(3 replies)
FICA Tax Exemption Calculation
(3 replies)

Search this Thread

Advanced Search

Bookmarks

Sponsors



Copyright ©2003 - 2009, Ask Me Help Desk.
All times are GMT -8. The time now is 06:15 AM.