Hi! I am a Exchange Visitor Physician on a J1 visa. I have been in training (residency) since July 2006. My spouse (J2 visa) has been working in the same hospital since March 2007 after receiving an Employment Authorization (EAD) from USCIS. We both are Indian nationals. In December of 2008, we realized through a friend of ours that my employer has been deducting Social Security and Medicare taxes from both our pay stubs since we started our respective jobs. When we approached the payroll department, they said that they would not do it from 2009. We had asked them about the social security and medicare tax refund for 2006 (July to December), 2007 and 2008 but they asked us to write to Social Security Office to get the refund as the money is not with the employer anymore. We approached the local Social Security Administration (SSA) office with this request. The SSA told us that we would have to fill form 843 and form 8316 and send it along with other required documents to the IRS office where we submit our taxes usually. Since this is my last year in training and my residency (and J1 visa) ends in July, we would like to get our refund back. Kindly let us know if we are doing the right thing. Is there anything else that we have to do?
Thanks a lot.

On J1, you are exempt from residency and FICA taxes (SS tax and Medicare tax) for 2 years that is 2006 and 2007. Then you must pay these taxes.
On J2 you are exempt from residency but must pay FICA taxes from the very first year.

Read about filing Form 843: Your U.S. Tax Return: Social Security and Medicare (FICA) Taxes for Non-resident Exempt Individual

Dear MukatA, Thank you for your quick response. I forgot to mention in my earlier question that I was a graduate student on F1 visa from May 2003 till May 2006. During this time, I was a graduate assistant at my school and did part time 20 hrs/week for which I was paid by the university. I don't think the university withheld Social Security Tax or Medicare taxes from my paystub. After my graduate studies (F1) ended in May 2006, I went back home, got my J1 and then came back to U.S to start my residency.

Considering my F1 visa before my J1, am I still eligible to get a refund for 2006 and 2007 when I was on J1 or does it mean that one is exempt from paying the Social Security and Medicare taxes only for the first two years of his/her stay in U.S no matter what visa he/she is on (F1 or J1)?

No, you are NOT eligible for the FICA tax exemption, because the time of your F-1 visa status counts against the J-1 two-year period.

In other words, you WERE liable for FICA taxes in 2006 and 2007.

Sorry!

No, you are NOT eligible for the FICA tax exemption, because the time of your F-1 visa status counts against the J-1 two-year period.

In other words, you WERE liable for FICA taxes in 2006 and 2007.

Sorry!