Hi,

I was on my OPT from Jan. 1, 2006 to Dec. 10, 2006. I suppose I will have to file forms 1040NR-EZ because I wasn’t under H1B for more than 183 days. My questions are;
1. On form 1040NR-EZ, what should I write for occupation and purpose of visit which was “student” and “education” in 2005? Where do I need to specify that I was on OPT for 11.5 months?
2. Is “Article 21(2) of the United States-India Income Tax Treaty” still applicable for exemption deductions? If yes, then on form 8843, should I fill the “Part III” for “Students” same as 2005 (even though I did not attend school at all during 2006)?
3. My employer has not deducted Social Security and Medicare taxes from Dec. 10, 2006 to Dec. 31, 2006, so how and where should I pay it?

I would really appreciate if anybody could answer these questions for me.
Thank you very much.

Regards,
Samaira

AtlantaTaxExpert

Samaira:

1) Put "student and education" again. Your OPT is considered an extension of your schooling.

2) Yes, Article 21(2) still applies, and yes, fill in Part III just like in 2005.

3) You should NOT pay it. Collecting those taxes is the employer's responsibility, not yours.

SamairaK

Thank you so much for answering this...I really appreciate it. So I am not at fault if Employer hasn't deducted those taxes.....

AtlantaTaxExpert

Yes, you are NOT at fault for the Employer's failing.