Hi,

I am in a very different situation here. I was on F1 from 2001 to 2005, then went back to India in Jan 2006 and came back to the US on F1 (for masters this time) in July 2008. I am currently doing a summer internship on CPT.

1. Do I have to pay the FICA tax?
2. My employer is asking for proof of exemption. What proof can I give them?

Thanks for your help.

Anshul

Anshul:

You ARE exempt from the FICA tax if you can prove to the IRS satisfaction that you are maintaining a "closer connection" to your home country. If you submitted such proof to the IRS with Form 8843 when you filed as a non-resident alien in 2008, that should suffice.

If you did NOT submit that proof and/or failed to file a Form 8843, do so now. Better late than never!

Thanks for the answer. I will file that form immediately. So, can I ask my employer to not withhold the FICA tax? Since I did not send the 8843.

Thanks again
Anshul

Anshul:

You can try, but you may have trouble convincing your employer that you have maintained the closer connection without some written acceptance of that position from the IRS.

When you submit the Form 8843, specifically request that the IRS respond to your submission with an acceptance notice. That acceptance notice should be the proof your employer would require to stop withholding FICA taxes.