View Full Version : SS and Medicare tax under OPT
Landlord86
Dec 21, 2008, 12:00 AM
I came to US in August 2003, finished my studies in May 2008 and started working full-time (OPT) from August 2008. Currently I am paying both SS and Medicare taxes. Do I have to pay these taxes as I am working in OPT and technically still under F1 visa? Or am I considered resident alien since I have been in US for 5 years?
Thanks,
MukatA
Dec 21, 2008, 04:18 AM
On F1 you are exempt from residency for 5-years so from the sixth year you must pay SS and Medicare taxes.
You will file resident tax return in 2008.
Landlord86
Dec 21, 2008, 07:32 PM
Thanks for the reply. Since OPT has been extended to 29 months, any chances that the 5 year period also be extended? And will I get refund for SS and medicare taxes?
AtlantaTaxExpert
Dec 23, 2008, 06:53 AM
You CAN avoid paying Social Security and Medicare taxes by filing Form 1040NR and 8843 for 2008 AND submit proof that you are maintaining a "closer connection" with your home country.
Burden of proof for this closer connection is on you, and if you apply for a H-1B visa, that action will disallow any claim for closer connection.
IntlTax
Dec 23, 2008, 01:46 PM
I agree that you may be able to claim nonresident status, but that the burden of the closer connection to your home country is on you. If you apply for a green card, then you likely will not be successful in arguing that you are temporarily present in the U.S. The regulations do not identify such a bright-line test for applying for a H1-B visa.