Hi,

I am on OPT and working as a full time employee. I came to US about 2 and half years ago only and I am from Nepal.

Do I need to pay FICA taxes while I am on OPT ? My company has not applied for my H1B visa yet.

You are exempt from FICA (Social Security and Medicare) taxes during the time you are under the F-1 visa (including your OPT time) up to five calendar years.

If your employer is withholding FICA taxes, download IRS Pub 519 from Internal Revenue Service, print off pages 46 - 51, and go to your payroll department with a request that they refund these improperly-withheld taxes, both for 2008 and 2009.

If they refuse to refund 2008 back taxes, be nice and request a refusal letter so you can apply for the refund using Form 843.

If you need professional help, email me at [email protected].

On F1/OPT you are exempt from residency for 5-years. You must file non-resident tax return Form 1040NR or 1040NR-EZ and Form 8843.

Your income is not subject to FICA taxes but you must pay federal and state income taxes. Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents