AtlantaTaxExpert,

I will greatly appreciate your help for this matter. Currently, I am using my opt to work and my opt started from April 0:) 7-March 08. Technically, I am exempt from social security and medicare taxes. However, I was treated as a resident when we filed jointly tax return in 2006 because my spouse is on H-1 visa. We are going to file our tax in the same way for 2007. But my paychecks I received only included federal tax. There were no records for social security and medicare taxes. So, what shall I do if I want to pay these two taxes for 2007?

Thank you for taking time to help me with this issue.

Happy new year!

Dan

Dan:

Since you filed jointly with your spouse, you made the conscious and voluntary decision to be treated as a resident alien for 2006. That decision carries over to 2007. For this reason, you were liable to pay Social Security and Medicare taxes for 2007.

You have the legal obligation to notify your employer of this fact as soon as possible so that they can take the ncessary steps to collect and pay these taxes. You should make this notification in writing and keep a copy for your records.

Once you have made this notification, the rest is up to your employer. YOU cannot make the payments, beause these are considered employment taxes that MUST be paid by the employer.

AtlantaTaxExpert: Thank you so much and Happy New Year! :)

Happy New Year as well.

BTW, if your employer decides to act IAW the law, expect him to collect the back taxes for 2007. He has until 31 January 2008 to do so. He probably will not ask for them all at once, but he DOES have the right to collect those taxes on a payment plan. You should pay ONLY the taxes at 6.2% for Social Security and 1.45% for Medicare. YOU should pay NO interest or penalty.

It is also possible that he will DO NOTHING!

The reason is simple: He is liable for some rather odious late payment penalties on these taxes (as much of 100% of the taxes owed). When he makes that determination, he may decide to ignore the problem and hope no one at the IRS will notice.

If that happens, DO NOTHING! You have met your legal obligation by notifying the employer of the error! That is why I said to do it in writing and to keep a copy. Email is a VERY GOOD means for this.

If you inform the IRS of your employer's failure to collect these taxes, you will likely have your employment terminated. The IRS will NOT come after you for these taxes. They are the responsibility of the employer.