Hello,

Here are my questions:

1) I was working from January 08 to July 08 (in Washingtong DC) part-time on campus on my F1 student Visa. The university took out both federal and state taxes from my paycheck. Can you please tell me what are the percentages for each of the state and federal tax? And when I file for returns next April, can you also please tell me how much I will get back from the taxes they took out of my paycheck?

2) In August 08, the university sponsored me for an H1B visa. And in my first pay check they took out 1.46 % for FICA medicare and 6.27% for FICA social security, 15.61 % for federal taxes, and 5.64% for State Taxes. Are these number accurate? Is there an official website that list what percentages H1B holders are supposed to pay for taxes?

3) How do I benefit from Social security and what is it used for, especially in my case where I am on an H1B visa?

4) When I file my taxes next April, am I expected to get any of the taxes of paid?

Thank you very much,

John

The federal and state income taxes are based on the information provided by you on your W4. If you claim more allowances on W4, the employer will withhold less taxes; if you claim less allowances on W4, the employer will withhold more taxes. The withholding taxes are not same as your taxes on your tax return. If taxes withheld are more than the taxes as per your tax return, you will get a refund.

1. Based on number of allowances on your W4.
2. SS tax at 6.2% and Medicare at 1.45%. Income taxes depend upon your W4.
3. H1-B is work visa. You must pay FICA taxes. Retire in the U.S. and get the benefits.
4. Depends upon what you claimed on W4. If you claimed 0 allowances, you will get a refund.

In order to retire in the U.S. you will need to get a green card.

Not sure what percentage of H-1 worker successfully convert to green cards, but it cannot be too high. If you fail to get the green card, and do not pay into the Social Security and Medicare fund for at least ten years, you will get NO benefits and the FICA taxes you paid will NOT be refunded.

This, In my opinion, is grossly unfair, but no one has EVER said the American tax system is fair!

The one piece of good news in this scenario is if your home country has signed a totalization agreement with the U.S. If so, then the money you pay in FICA taxes is credited to the equivalent system in your home country.

A list of the countries who have signed a totalization agreement with the U.S. can be found on page 49, IRS Pub 519, which can be downloaded from Internal Revenue Service.