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View Full Version : SSN and Medicare TAX on F1 status on CPT (Internship)


saumiljain
May 16, 2008, 01:52 PM
Hello

Im currently working on CPT in the US on F1. My employer has deducted SSN and Medicare Tax from my pay check. When I asked them to not deduct SSN and Medicare since I'm on F1 she is asking me for a reference document which says this. Can anybody tell me as to what should I tell her Why IM not eligible for SSN and Medicare Tax deductions on F1 status in the US and which reference document I could ask her to verify this.

Im from India studying in US university and currently working as a Summer Intern (on F1).

Please let me know.

Thanks.

MukatA
May 16, 2008, 06:26 PM
Every one on F1/OPT/CPT is exempt from residency for 5-years. During this "exempt" period you don't pay FICA taxes.

Also the U.S. and India tax treaty does not allow you to file resident tax return. Read: Your U.S. Tax Return: U.S. Tax Treaties for Students and Apprentices (http://taxipay.blogspot.com/2008/03/us-tax-treaties-for-students-and.html)

For your employer, you should refer to IRS publication 519: Tax for Aliens

AtlantaTaxExpert
May 19, 2008, 01:02 PM
Agreed; IRS Pub 519, page 49, is your best reference for your employer.