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hbawarichie10
Apr 26, 2012, 03:44 AM
Hi,
I need information about Social security tax and Medicare taxes. I am an Indian citizen working for California State. I joined in H1-B visa but after 1 year of joining, I had been based in switzerland but worknig for California state. But my salary still get deducted Social Security as well Medicare taxes. I talked to my employer and they told me that It will help me in retirement benefit eventually. I am not sure of my plan details as well , its 2% at 55. My question is Since I am temporary worker getting extension depend upon funds and If after say 6-7 years, they had no funds and I had to leave job and go back to India, Do this Social Security and Medicare taxes help me in some time. Or I need to be citizen or resident of US to claim in some time of my life.

Many thanks for any useful answer

AtlantaTaxExpert
Apr 26, 2012, 07:57 AM
If you do not eventually get a green card, it is likely you will NOT accrue enough years (ten years is required) under the system to qualify for Social Security benefits. Further, there is NO totalization agreement with India, so you get NO credit for the payments you are maiing into the system.

Is it fair? No, absolutely not. Unfortunately, however, the requirement to pay these taxes IS the law.

MukatA
Apr 26, 2012, 11:11 PM
If you are nonresident for tax purpose, the salary paid by U.S. employer is not taxable in U.S. Also you do not pay Social Security and Medicare taxes.
I do not think that nonresidents can contribute towards Social security and Medicare.