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View Full Version : Why are people on L1 - A visa required to pay SST and Medicare tax


deepakbag
Aug 29, 2008, 11:32 AM
Hi,

Wanted to know on why are people on L1 A visa required to pay SST and Medicare tax and will they be able to claim refund of these taxes as the will not be in U.S for long time.

What is the purpose of this tax. I hear that people can get social security benefits after they retire. So if I get back to my home country after I retire will I still get social security benefits as my taxes were deducted for Social security?

Please let me know.

Regards,
Deepak

>Moved from Other Law<

JudyKayTee
Aug 29, 2008, 11:56 AM
Hi,

Wanted to know on why are people on L1 A visa required to pay SST and Medicare tax and will they be able to claim refund of these taxes as the will not be in U.S for long time.

What is the purpose of this tax. I hear that people can get social security benefits after they retire. So if I get back to my home country after I retire will I still get social security benefits as my taxes were deducted for Social security?

Please let me know.

Regards,
Deepak



You pay because if you become disabled you will be able to collect SS and Medicare - it's not just for retirement.

And, no, it isn't reimbursed to you - a lot of people pay all their lives and die before they ever retire. Their heirs do not receive reimbursement.

(I think this is more an Immigration and tax question than a legal question.)

AtlantaTaxExpert
Sep 1, 2008, 11:56 AM
Deepak:

What Kay says is true. You will NOT get a refund of these taxes.

MukatA
Sep 2, 2008, 10:48 PM
L1 is work visa. You can file resident tax return and get standard deduction all all other benefits that are available to the U.S. citizens and residents.

L1 is also stepping stone to green card. If L1 visa holders are allowed exemption from FICA taxes and they later on convert to green card, it will be great injustice to the citizens and residents who have always paid FICA taxes.

AtlantaTaxExpert
Sep 3, 2008, 11:50 AM
I will NOT comment on the fairness of L-1 and H-1 visa holders paying FICA taxes.

Some will perceive it as fair, others will not.

The fairness is irrelevant! The fact is that it IS the law, and the employer and employee must comply or face some hellacious fines.

Atty
Dec 16, 2008, 09:30 PM
I think you should all read up on your TOTALIZATION AGREEMENTS knowledge.

JudyKayTee
Dec 17, 2008, 07:02 AM
I think you should all read up on your TOTALIZATION AGREEMENTS knowledge.


Rather than just telling other people how to do research, why don't you post your knowledge?