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J-1 visa exempt of SS and Medicare taxes (Work and Travel program)

Asked Oct 12, 2006, 05:49 PM — 4 Answers
Hi everybody,

I was present in us for 150 days in 2005 on a J-1visa.
I participate in Work and Travel program.
Surprisingly for me, my employer deducts SS and Medicare taxes from my salary.
I talked to him about that and he said that IRS would fix the mistake in the end of the year.
I filled form 843 and Form 8316.
After almost 2 months, IRS processed my request for refund of SS and Medicare and send me a letter. The letter from IRS says that I am not eligible for REFUND, because J-1 visa student who participate in Work and Travel program are not exempt of paying SS and Medicare.
I was so confused I still do not know what to do.
I also send all the other papers that they ask in Publication 519 (like letter from the employer, my W-2 form, copy of my visa,copy of my passport)

Can you please give me any advice?

I state as my reason in my papers that I am exempt because:

4 Answers
AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,862, Reputation: 3723
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#2

Oct 12, 2006, 07:36 PM


Ann:

Students under a F-1 visa are normally exempt from Social Security and Medicare taxes.

Visitors on J-1 visas is somewhat more complicated. Can you tell what country you are from, as the tax treaty with your home country may address your situation.
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troj's Avatar
troj Posts: 20, Reputation: 1
New Member
 
#3

Oct 13, 2006, 01:24 PM
Quote:
Originally Posted by AtlantaTaxExpert
Ann:

Students under a F-1 visa are normally exempt from Social Security and Medicare taxes.

Visitors on J-1 visas is somewhat more complicated. Can you tell what country you are from, as the tax treaty with your home country may address your situation.

I am from Bulgaria.
And as far as I know ,my country do not have a tax traty with US.

What to do ?
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LUNAGODDESS's Avatar
LUNAGODDESS Posts: 467, Reputation: 263
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#4

Oct 13, 2006, 02:45 PM
[quote][i]According to IRS Pub. 519, I am not subject to Social Security and Medicare taxes while on Work and Travel Program as long as I am a nonresident alien for tax purposes.
I am a non-resident alien student of a J-1 visa.
Section 3121(b)(19) of the Internal Revenue Code and the regulations there under state that a NRA(non-resident alien) student on an J-1 visa is not liable for paying Social Security and Medicare taxes on wages for as long as he remains an NRA under the residency rules stated in section 7701(b) of the Internal Revenue. I state that for calendar year 2005 was a NRA student and I am not liable for Social security and Medicare taxes.
I hereby ask for a refund of the Social security and Medicare taxes withheld from my wages.
[u][b]I have asked my employer for a Refund of these taxes and have been refused.
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,862, Reputation: 3723
Senior Tax Expert
 
#5

Oct 13, 2006, 03:26 PM


Ann:

Indications are that you are entitled to a refund of your SS and Medicare taxes. You need to call the phone number that is on the rejection letter and ASK exactly why you were rejected.

Ask for the Internal Revenue Code citation for this reason:

"because J-1 visa student who participate in Work and Travel program are not exempt of paying SS and Medicare."

Once I have the citation, I can validate it and explain why they denied your refund request.
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