Hello,

I am a Chinese and I started working in the USA since Dec. 2007 with my OPT which expired on Sep. 2008. I am on status H1-B afterwards.

My Social Security and Medicare taxes were not deducted during my OPT, but my employer is filing to refund them since I met the criteria of exemption. They resend me two separate W-2 forms to replace the original one, one is for the OPT period with Social Security and Medicare taxes deducted and another one for the H1-B period.

I have two questions about the tax refund:
1. I read some information that says I should file 1040NR-EZ and wait for the refund from my employer. Is that right?

2. I also checked 1040NR-EZ Guide, there is one item says "If you had taxable interest or dividend income, you can not use this form". My bank sent me a Interest Income form with 0.00 Federal Income Tax Withheld for my saving account, does that mean I am not able to use 1040NR-EZ, then which one should I file instead? What should I do with the saving account interest income?


Thank you in advance and I really appreciate it!

Bin

Claiming a refund of improperly-withheld FICA (Social Security and Medicare) taxes requires you file Form 843 and 8316. It has NOTHING to do with your annual tax return.

Contact your employer to get a refund of the FICA (Social Security and Medicare) taxes. If the employer, get the refusal in writing , preferably on company letterhead, and attach that refusal letter along with the other support documentation to the Form 843, which is submitted to the IRS in Philadelphia, Pennsylvania.

For your annual tax return, you should file Form 1040NR and claim the exemption of tax on bank interest on page 5 of that form.