Hi Tax Expert,

I am currently holding OPT status
My OPT began in Jan 2007 and will valid on Jan 2008. By October 1 I am allowed to work with H-1B status:D .

Now I am going to start with my previous situation:

I worked with School District since September - January (CPT) then continued from JAnuary till June (OPT). The district said that I can't claim my Medicare Tax because it is a district and everyone works in there has to pay medicare:eek: . I know my case is a bit different. What do you think about that? Can I just file my tax refund (Medicare & SSN) by myself next year?What Form should I fill for the district?


Another case is with my current employer (Music Company)
What bothers me so much is that my employer says that he wouldn't want to change my status to Employee, meanwhile, he has already sponsored my H-1B:mad: .

It is a Cooperation who only hire Independent Contractor. I started working with my employer as a Teacher but he promised me that he can pay me like an employee salary.
The salary is still in promised but my employer would not want to change my status from Independent Contractor to Employee because of Tax matter. The company will give 1099 by the end of the year to all of the contractors. The company does not deduct any Medicare, SSN, or Withholding Tax. Currently, I am under OPT and going to H-1B, and I know I have to receive W-2 from the company but with my status, I don't think it will happen:( .
I am so confused and do not know what I can do about it.
What kind of form should I fill for Filing Tax if I am an Independent Contractor?
What If I am H1B?

Thanks and appreciate your time.:o

As a F-1 visa holder, you should NOT have paid Medicare taxes while on CPT or on OPT.

Go to the school district and ask for a refund. Be nice so that, when they refuse, you can convince them to provide you with a written refusal. Once you have the written refusal, you can request the refund from the IRS using Form 843.

As for the current position, you will be able to avoid paying self-employment tax (that is what independent contractors pay in place of the Social Security and Medicare taxes that employees pay) for 2007, as you will be filing as a non-resident alien in 2007.

In 2008, however, you WILL have to pay the eself-employment tax at 15.3% because you will be filing as a resident alien for 2008.

If need professional help in filing these taxs (or the Form 843), contact me at the email address below.