I just got my h1b visa and just do not know how should I file my taxes next year. I also want to know if H1b should pay medicare and social security since we are not going to benefit in because we are a non immigrant holder.
I work with this company and have a co worker that h1b visa holder also and our employer is deducting social security and medicare on her payroll. Is it right? I am not planning of retiring here-- I want to go back in my country.
Thank you.

Pinay

Pinay:

Sorry, but H-1B are liable for Social Security and Medicare taxes, even if you will never participate in either program.

You will have to file a dual-status tax return for 2006, because you were a non-resident alien for part of 2006. If you are married, you may be able to file as a resident alien.