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mjungf1
Mar 19, 2014, 04:26 PM
Hello,


I've a few questions regarding my tax status and also about possible tax credits.


I got my undergrad (August 2008 - May 2012) as well as my graduate degree (August 2012 - May 2013) in the US. In June 2013 I started working on OPT and still am. I've told my employer that I'm not required to pay social security taxes since I'm on F-1 OPT and haven't paid any since I started.


Now that it's tax season, I've been looking through a few websites and noticed that I'm only a non-resident for tax purposes for the first five years in the US and after the first five years which would be the start of 2013 I'm considered a resident alien. Is that correct? Would I be considered a resident alien for 2013?


Also, am I eligible for any tax credits like the American Opportunity Tax Credit or anything else?

Thank you,

Martin

AtlantaTaxExpert
Mar 19, 2014, 07:48 PM
Martin,

The GOOD NEWS is that you ARE eligible for an education credit in 2013 for tuition paid in 2013.

The NOT so GOOD NEWS is that it is NOT the American Opportunity Credit, because you are taking graduate work.

The BAD NEWS is that, in 2013, you WERE LIABLE for FICA (Social Security and Medicare) taxes, and you have a legal obligation to tell your employer that fact.

The NOT so BAD NEWS is that it is likely the employer will make no attempt to collect the back taxes for FICA for 2013.