Hi my name is rakesh. I have a question regarding tax filing for the year 2011. I worked in Atlanta in the last year for two different employers one is based on Atlanta and other employer am currently working is based on NY but my client I am working from both of my employers are based in Atlanta Georgia. I worked on OPT from the month Feb to September and my H1b started in October. I worked for 1st employer from Feb to Mid April in Atlanta for one employer who is based on Georgia state and taxes were not according to OPT but based on H1b and I worked from Mid April to Dec to another client in Atlanta through an employer based in NY but my taxes were cut according to H1b and also from the state NY. I heard that the taxes should be run from the same state where the client is. Both of my employers have no idea about OPT and please advise me what should I do inorder to get my extra money being paid as taxes. Is it an issue working in Atlanta and paid taxes as per NY state? What percentage of money I can get back if there is a chance? What are the required forms that I need to fill in case If I need to fill any forms to get the extra money. Thanks

1. If you have not completed 5 years on F1 and are not married, for federal return you will file nonresident tax return and Form 8843. Since you have OPT income, you will claim tax treaty deduction.
2. Since you worked in Atlanta, you must file Atlanta tax return report income from both the employers.
3. If you did not live in NY and were not present in NY to work, you do not pay any NY tax. Your U.S. Tax Return: Working or Living in Two or More states (http://taxipay.blogspot.com/2008/06/working-in-two-or-more-states.html)

The "Atlanta" tax is actually taxes for the state of Georgia. Atlanta does NOT have any city income tax.

If your employer(s) withheld FICA (Social Security and Medicare) taxes while on OPT, they should NOT have done that. However, the IRS requires you attempt to get the refund FIRST from the employer. If the employer refuses to refund the withheld taxes, try to get a refusal letter from them on company letterhead stating HOW MUCH in FICA (Social Security and Medicare) taxes were withheld, why they refused to refund, plus a name and phone number of a company point-of-contact. This letter is NOT absolutely essential (we can get refund without it); it just makes the process go a LOT faster.

Once you have the letter, we can submit Form 843 and 8316, along with some support documents, to the IRS. If all goes according to plan, it takes about 3-6 months to get the refund direct from the IRS. Note that this is a separate process from filing your annual tax return.

If you need professional help with any of the above issues, this IS what I do. Please double-click on my title above and then scroll down to my signature to get my email address.