Hi folks,

I got three questions that need your kind help.

1) Last year I worked under CPT (curriculum practical training) authorization until my h1b activated on Oct 30th. Somehow my company withheld Social Security and Medicare taxes from Oct 1st. I got the impression that these ought to be counted after h1b activation, right?

Can you let me know how to claim a refund if my understanding is correct? I have contacted HR payroll, who said it was transferred to Federal taxes hence no refund from company.

2) Shall I file non resident or resident for year 2009? I hope I could do resident with my wife (who also transferred from F2 to H4) but looks like the 2009 days are not enough to claim so.

I learn from the forum that we may apply for extension. But if in the end we own IRS money instead of tax refund, will it result in penalty? Please advise.

3) I invested in the past two years. I lost money in 2008 from oversea markets but gained from US market last year. Overall it is a gain. In both years I stayed in the US.

I am wondering if I could carry my 2008 oversea loss to offset part of my 2009 domestic gain. If the answer is yes, please advise how to do that.

Thank you for your time. Really appreciate your help with expertise!

1. If you can not get from your employer, you will not get it.
2. You can choose (First Year Choice) to file resident tax return as Married Filing Jointly. You will have to wait for 5 months to file your tax return till you meet the Substantial Presence Test in 2010.That Your U.S. Tax Return: Substantial Presence Test (http://taxipay.blogspot.com/2008/04/substantial-presence-test.html)

You will get standard deduction of $11,400 and exemptions ($3,650 each) for both of you.
You must both declare your worldwide income for 2009. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit (Form 1116).
You will report foreign stock sales in 2009 on schedule D (Form 1040) just like U.S. stocks.
Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

Also you may be required to file Form TD F 90-22.1 if you file as residents.

MukatA,

Thanks a lot for your answers.

But I don't understand the Social Security and Medicare taxes part.

Why you said "1. If you can not get from your employer, you will not get it."

I found some previous posts in the forum talking about refunds. Any difference in my case?

Thanks.

Yes, you can file for refund of FICA taxes. You can file only after you have filed your 2009 tax return. You will need a statement from employer that they can not refund it. Your U.S. Tax Return: Social Security and Medicare (FICA) Taxes for Non-resident Exempt Individual (http://taxipay.blogspot.com/2008/03/non-resident-exempt-individual-social.html)