I am a non US citizen and a non US permanent resident. I was working in New York City for a US company on an H1B visa. In September 2010, I relocated to Thailand to work at the Thailand office of the same company. I used a tax advisor to file my US tax returns for 2010 as dual-status alien. While living and working in Thailand, I am still getting paid in US dollars on US payroll, and my salary is getting deposited into my US bank account. I am planning to tell my employer to change the taxes withheld from my paychecks, and have some questions.

First, since my H1B visa expired in September 2010, I should not be paying social security and medicare taxes, and I should tell my employer to stop withholding social security and medicare taxes from my paychecks. Is this correct? If so, is there a way for me to get back the social security and medicare taxes that were withheld from my paychecks after September 2010?

Second, since I am a non-resident alien living and working outside the US, I should not be paying Federal, NY State, and NY City taxes, and I should tell my employer to stop withholding Federal, NY State, and NY City taxes from my paychecks. Is this correct? If so, I understand that I can get back the Federal, NY State, and NY City taxes that were withheld from my paychecks in 2011 when I file my tax returns next year for 2011.

Thanks

For 2010, you are dual status. If you are resident or citizen of Thailand, you are nonresident alien after you left US. The income that you receive in Thailand from US company is not considered US income (if the income is taxable in Thailand). You do not pay US taxes as well social security taxes.

Inform your employer about your nonresident status. Send Form W-8BEN to your employer.

Your employer should be able to refund you SS tax and Medicare tax deducted in 2011. For 2010, you can apply for refund to IRS only after your 2010 tax return is processed.