Hi there,

I was on an L1 Visa in the USA from 2005 until 2007 (returning to Australia mid 2007). However I was on a USA payroll until Dec 2007 even though I was working from Australia. During this time I paid full USA taxes, USA social Security and Company Health contribution. I am receiving part credit for the USA tax against the Australian dual tax treaty however, I was told recently by a colleague that he does not pay the social security component whilst employed in the USA because he is on an L1 Visa from same country etc. Should I be claiming for the USA social security that I paid but will never access?

Further, I could not access my USA Health as I was no longer living in that country, even though I was paying into company health plan from the time I left the USA until I was finally taken off the USA payroll. Can I claim reimbursement for this contribution paid and not able to access - even pro rata during 2007 when I returned and my tax residency was Australian?

Finally, I was unable to claim all tax deductions against my USA income for the period I was back and resident in Australia -even though I was paying full USA tax for that time, and Australian deductions were applied (albeit not the same as USA deductions.)

Unfortunately, the tax advisors (a large company retained by my employer at the time) had trouble with my dual country returns, and had double taxed me, until I fought hard to have it reviewed and corrected which took most of 2008 to resolve- so I am not confident in asking them these questions - they seem to know less about these things than actual ex pats.

Thanks

L1 is work visa. You income is subject to Social Security and Medicare taxes.
Read: Your U.S. Tax Return: The U.S. Visas

Thanks MukatA for your answer. I have now read the references you suggested. Perhaps I may be able to claim for the part year period I was declared a resident for Australia although paying USA social and medicare taxes.
I have now put it back to the tax consultants who prepared my returns.
Thanks again your advice is much appreciated.

You should not have been paying U.S. social security taxes for the time that you were working in Australia.

I agree with IntlTax. You probably have a case for requesting a refund for the part of the Social Security and Medicare taxes you paid while in Australia.

Your first course of action is to have your employer request the refund. The employer should have an incentive to do so because THEY get money back as well.

If they refuse, get the refusal in writing, then submit Form 843 to request a refund from the IRS.