Hi,

This might be the question asked every where but I would like to confirm with you guys.

I came to use in 2008 F1 visa. Now I got opt and I got a job - I am no more full time student. My employer say that I have to pay social security and medicare tax. So my question is that tax exempt (social security and medicare) if I were full time student or even working full time in OPT (no more student).

If I opt to 1099 then am I tax exempt which is not the case in W2? - what is major difference between these two.

I would really appreciate your help which will save me lot of money.

On F-1 and OPT you are exempt from residency for 5 years. You do not pay FICA taxes.
If the employer issues you 1099-misc, they do not withhold any taxes. It is for you to take care of paying the required taxes. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)