I have been in US from July 2003 to present. I was on F1 from Jul 2003 to Oct 2007 and on OPT from Oct 2007 - Sep 2008. On Oct 08, my H1B status kicked in and my employer is not detecting FICA taxes. I filed my taxes as F1 until 2007 with standard deductions. I would like to know the following:

1. Do I need to pay SSN & medicare for the entire 2008 or just for my H1B status period? If so what should I do to make the necessary changes?

2. What should I do for my 2008 tax returns? How do I get the tax benefits for being on OPT?

Please kindly let me know the required forms for filing 2008 tax returns.

Thanks in advance for your time and consideration.

Sat

You file taxes as F1 with standard deduction.
What form did you file? What is your citizenship?

Irrespective to how you filed in 2007, you are resident for 2008. You will file resident tax return. You must pay FICA taxes on OPT.

Thanks MukatA for your reply. Since 2003 to 2007 I was in LA and from Oct 07 to present I am in MN. Even then would I file taxes as a resident of MN?

- so FICA benefits could be claimed only for the first five years. As I mentioned earlier, my employer did not detected SSN and medicare earlier. What would you suggest in this situation? Do I pay the difference while filing tax return?

Thanks,
Sat

Sat:

You do NOT pay the FICA taxes with your tax return. You notify your employer of the mistake and let THEM determine what must be done. Notify them IN WRITING (email is good for this purpose). Once you do that, you have met your legal obligations. Your employer MAY or MAY NOT seek to correct their error and collect back FICA taxes.

For Minnesota, you file as a resident in 2008. Your visa status is irrelevant as far as stae taxes are concerned

Thanks for your reply, Atlanta TaxExpert!

With reference to your reply, I would like to know

1. Does F1 student in USA required to pay SSN and Medicare taxes after five years of stay? Is this not required for less than five years except for any other VISA status such as H1B, J etc ?

2. Upon informing my employer about the FICA deductions which they failed to do, what should I do if they did not correct this and collect back FICA taxes?

3. Can I file tax returns, without this corrections being incorporated? If I file returns with this situation, would this back fire me in future? Would I be paying more while filing returns which I may owe due for FICA taxes?

Thanks,
Sat

1) Normally, F-1 students become liable for Social Security and Medicare taxes after five years have passed UNLESS they are claiming a closer connection to their home country.

2) Nothing; it is out of your hands. If you persist in correcting the issue, you may find yourself terminated from employment.

3) You normally do NOT pay FICA taxes with your tax return, though you CAN if you file as an independent contractor and wish the IRS to investigate to see if you should be consideded an employee. That situation does NOT apply in your case. The IRS will NOT hold you responsible if FICA taxes are not paid; they will hold your EMPLOYER responsible if the back FICA taxes are not paid.

Thanks Atlanta TaxExpert!

- I would not risk my employment by trying to fix FICA payments
- Would this affect my H1B stamping in future? I am yet to get my H1B stamping.

Regards,
Sat

Sat:

No, it should not. Again, the IRS does NOT look to the employee on such issues. They deal exclusively with the employer.

Thank you Atlanta Expert for answering my questions! I appreciate you time and consideration!

Regards,
Sat

Glad to help!