Hi,

I am sure this subject has been discussed number of times before. I have tried to skim through the replies to get an answer to my query. But I guess I must have missed some posts.

Here is the summary of my work in year 2006:

January-Feb: Worked in university

March- April: worked on CPT

May to Dec 1: worked/working on OPT

Dec1 to Dec 31: will work on H1-B visa.

I didn't pay social security and medi care tax till now (according to the clause in IRS handbook).

Questions:
1) Will I get 2 W2 forms for FY 2006?

2) Am I liable to pay SS and medicare tax after Dec 1, 2006?

3) When I will file my taxes, how I will treat SS and medicare taxes?

4) I am singles without any loans or stuff so I am in the worst slab for taxes:mad: . Any way to save some?

Will really appreciate any of your replies:) .

1) Maybe, maybe not. It really will not make a difference.

2) Yes.

3) You will NOT deal with it. SS and Medicare taxes are collected and paid by the employer. HE is held responsible by the IRS to ensure it is done correctly.

4) Contribute to a traditional IRA. But before you do that, tell me how much you will make for 2006.

Quote:

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Originally Posted by AtlantaTaxExpert

1) Maybe, maybe not. It really will not make a difference.

2) Yes.

3) You will NOT deal with it. SS and Medicare taxes are collected and paid by the employer. HE is held responsible by the IRS to ensure it is done correctly.

4) Contribute to a traditional IRA. But before you do that, tell me how much you will make for 2006.

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Dear ATE

Thanks for your reply.

Regarding answer to my third question:

So when I'll file my taxes for FY 2006 I won't claim or mention SS and medicare tax?

Regarding fourth answer:

My gross pay will be in the range 30000-35000 for FY2006.

Also, some of friends have suggested me to pay a flat tax such that I underpay to IRS. And pay the rest balance at end of the year. I talked with my employer regarding this and they asked me to fill W4 for that. I am not very sure if that's a good option or not. Though technically I will not save any money by end of the yr but its just that I can invest my savings out of taxes somewhere. I would really really appreciate if you can guide me here.

Thanks!!

You do not address Medicare taxes at all on your annual tax return.

You may request a refund for overwithheld Social Security tax if you make more than $90K, but that does not apply in your case.

Your friends are right, but only to a point. You will pay an underwithhodling penalty if the amount you pay on April 15th exceeds $1,000.