Hi,

I changed my visa status from F1 to H1-B as of September 29, 2005. Do I need to pay Social security and Medicare taxes for the month of September. I had a talk with my employer as regards this and they claimed that they had deducted above taxes from my salary since I was on H1-b visa for two days in September. Can you please verify this for me

Appreciate your help,
Sajin

Sajin:

The day you started H-1B status is the day they should have started withholding Social Security and Medicare taxes.

Withholding for the entire month is bogus. Ask your boss for a refund of the Social Security and Medicare taxes withheld while you were under F-1 visa status. When they refuse (and they will), get it in writing, preferably on the company letterhead, as you will need it when you apply for a refund. See page 46 of IRS Pub 519 for the form (Form 843) and all other documents you will need to apply for a refund from the IRS.

Hi,

Really appreciate your quick response.

I was unemployed for the first eight months of the year and started working as of Sept1, 2005 and was on OPT in September and on H1-B thereafter. Since I was on H1 visa for less than 6months in the year I will be filing tax returns as Non resident alien and claiming exemption as per US India Treaty.

From the talk I had with my employer, they said something on the lines that since I was employed for less than four months in 2005 (hence fell under low income bracket) and also the fact that I was filing tax returns as Nonresident alien, I was entitled to a refund of majority of the Social security and medicare taxes I paid in 2005(Sept-Dec). Can you please verify whether this correct.

Thanks,
Sajin

Sajin:

Yes, that is correct.

You should have paid Social Security and Medicare taxes for the 29th and 30th of September, and that's all!