Log in

View Full Version : Social Security & Medicare Tax for H-1 visa holder


hak
Jun 15, 2007, 06:58 AM
Dear Expert,

H-1 visa is normally issued for the total of 6 years in the increment of 3 years. Why Social Security & Medicare Tax is being deducted from the salary of H-1 visa holder if the person cannot stay here in USA for more than 6 years? If he wants to stay longer in USA, he has to change his status - may be apply for green card but then social security should start deducting after the change of status to permanent residence? Can you please resolve this confusion. Thanks.

AtlantaTaxExpert
Jun 15, 2007, 12:39 PM
There is no confusion. H-1 and H-1B visa holders are simply getting screwed, because they ARE liable for Social Security and Medicare taxes, and, as noted, there is no way for them to become eligible for the benefits.

Now, some countries have entered into totalization agreements with the U.S. that will allow their payments into the U.S. Social Security system to be credited against their home-country social security system.

You can download IRS Pub 519 and search under "totalization" to get a list of these countries.