Hi

I am doing residency in psychiatry, currently in first year on J1 visa.
My University is holding OASDI/EE and Fed MED/EE taxes from my salary, while my colleague who is also in first year and on J1 visa is not entitled to these taxes.

What I have understood so far after searching for all the information is that Being a J1 visa holder I am exempt from these taxes.

Please help me with my query.

Does it make any difference the previous visa status. Previously I was on B1/B2 visa.
Thanks

My Current J1 Visa is for alien physician/ research scholar

As a J1 trainee (residency) you are exempt from Social Security tax and Medicare tax for two years. You will pay federal income tax and state income tax.

If you are a research scholar, then also you are exempt from Social Security tax and Medicare tax for two years. About federal income tax you should check tax treaty between your country and the U.S. For many countries, there is no federal income tax for two year.
Refer IRS pub 519: Tax for Aliens

If you are participating as a resident physician, you are considered to be a "trainee", not a research scholar.

You ARE exempt from Social Security and Medicare taxes for two calendar years, but are still liable for income taxes at the federal, state and local levels.

Quote:

---

Originally Posted by AtlantaTaxExpert

If you are participating as a resident physician, you are considered to be a "trainee", not a research scholar.

You ARE exempt from Social Security and Medicare taxes for two calendar years, but are still liable for income taxes at the federal, state and local levels.

---

Thanks, but why am I only exempt for 2 years, knowing that my visa type requires me to go back to my home country after expiration which is 7 years. That means that I will never benefit from the medicare and SS taxes I'm paying.
Is there a way to avoid paying those past the 2 years if I show that I'm going back to my country after 7 years?
Thanks

No.