Hi all,

This is my first post. I have no knowledge on taxes.

I graduated in dec 2007 from university in NC. My OPT started in Jan and I found a job in march 08 where I started working on OPT. I filed for my H1 and it started from Oct 1st 2008.

I am single. My dad is also here on h1 and my mom and sis are on h4. I stay with them. I don't own a house, stay in a rented apt.



I have a few questions.
1. My OPT did not cut any SS or Medicare taxes. But should H1 be cutting my SS and MD.
If yes, my company is not withholding any SS/MD. I have let them know about it today. But what would happen now. Would there be any fine ?

2. As per my allowances how much should I put for federal and state to withhold.

3. I heard there is different tax thing for people paying higher education loan. I pay loan from sallie mae which is an american organization. Can filing of such taxes be helpful.

4. Would it be beneficial to file tax as head of the household, as I can say I live alone and spend more than 50% on household stuff.

5. What is itemized deduction. I see there is 7,300 for household and 5,000 for single. Would that be more beneficial.


Sorry for all these questions. If any questions are stupid , then my apologies. Please help me out.

Thank you..

1. Yes, on H1-B your income is subject to SS tax and Medicare tax. You should write a email to your employer that they should deduct email. You can not pay FICA taxes by yourself.
3. You will file non-resident tax return and Form 8843 and can take deduction for student loan payment.
4. No
5. You will not get standard deduction. You can only take itemized deductions.
Read about H1-B tax filing: Your U.S. Tax Return: The U.S. Visas (http://taxipay.blogspot.com/2008/08/us-visas.html)

Thanks for the answers..

Am I only qualified for itemized deductions ?
I tried to read some articles on the blogspot provided but couldn't understand much on itemized deductions..

I now definitely know that I am eligible for FICA under H1.. Could you or anyone can answer my questions from 2 to 5 , more elaborately..

Thanks for all you help..

For professional help, you should contact AtlantaTaxExpert at [email protected].

Your itemized deduction, you should go through schedule A (Form 1040).

As a non-resident alien, you CANNOT file Head of Household. You canas a resident alien, but only if you have a qualifying person livingwith you.

As for the deductions and what can and cannot be claimed, I need to know your HOME country to determine if tax treaties are involved.