I have a question about the Social Secuirty and Medicare Taxes. I came to US
As a F1 student in sep. 2000. I began my OPT in July, 2005. And my H1b started at Jan. 1, 2006. Since I was a F1-Student in the whole year of 2005. Neither my university, nor my current company deducted these two types of tax from my paycheck. However, when I am preparing the tax return for 2005, I learned that there is a five-year limit for the exemption of these taxes. (1) Am I right? (2) If I am right, what should I do next? (3) Will the government check me for this? (4)Will it affect my immigration status? (5) My company originally withheld these taxes. Then I asked them whether I need to pay these taxes since I am still a F1-visa holder. My company then stopped the withholding. Am I responsible for this problem? Thanks a lot. Nathan

Nathan:

1) Yes, you are right.

2) Nothing!

3) No!

4) No!

5) Possibly. The company could argue that you misled them, which, In my opinion, is the only way they can avoid responsibility for not withholding the taxes. I suggest you go to your employer and explain the problem. At a minimum, you should pay withholding from 1 Jan 2006 on. Whether you pay for 2005 is something to negotiate.