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-   -   FICA exemption (https://www.askmehelpdesk.com/showthread.php?t=50973)

  • Dec 28, 2006, 10:52 PM
    sbrz5
    FICA exemption
    Hi,
    Thank you much for answering my question.
    I came to U.S on F-1 visa in August 2003. I have got my OPT in oct 2006 and it is going to be expired in oct 2007. I understood from your e-mail that I am exempted from FICA taxes. I have few questions regarding this.

    1. I have heard that the exemption of FICA taxes will last for five year starting from the entering in to the united states is it right? If it is yes am I expempted from the FICA taxes until August 2008? But by that time I will be on H-1. Can we exempt from FICA even if we are on H-1? Or only F-1 students are exempted from FICA taxes?

    2. What documents or forms I have to provide to my employer to prove or show that I am exempted fromthese taxes.

    Please help me by answering these questions also.

    Sincerely
  • Dec 29, 2006, 08:17 AM
    AtlantaTaxExpert
    1) The day you convert from the F-1 to the H-1 or H-1B visa, that day to become liable for FICA taxes.

    2) You need to show your employer a copy of your visa and show that the work with this employer is related to the field of study that you are pursuing in the U.S. For example, if you are pursuing a masters in software engineering and work on an OPT with a software company, you qualify for the exemption. If, however, you work part-time at a bookstore to earn some extra money to meet expenses, then that income from the bookstore is NOT related to your studies and therefore NOT exempt from FICA taxes.
  • Dec 29, 2006, 10:56 PM
    sbrz5
    Quote:

    Originally Posted by AtlantaTaxExpert
    1) The day you convert from the F-1 to the H-1 or H-1B visa, that day to become liable for FICA taxes.

    2) You need to show your employer a copy of your visa and show that the work with this employer is related to the field of study that you are pursuing in the U.S. For example, if you are pursuing a masters in software engineering and work on an OPT with a software company, you qualify for the exemption. If, however, you work part-time at a bookstore to earn some extra money to meet expenses, then that income from the bookstore is NOT related to your studies and therefore NOT exempt from FICA taxes.


    Hi,
    Thanks much for your answer. I am working in the same field. Do I need to submit any other forms or documents from the IRS website? I thought I have to submit form 843 is it right? Please let me know.

    Sincerely.
  • Dec 30, 2006, 08:54 AM
    AtlantaTaxExpert
    You use Form 843 only if the employer refuses to refund the improperly-withheld Social Security and Medicare tax.

    In the process, the FIRST step is to notifiy the employer of the error in withholding these taxes and formally request that they be refunded. This can be done with minimal effort on the employer's part up to the end of January 2007.

    If the employer refuses, for whatever reason, you need to get the refusal in writing. Once you have that, you can then download IRS Pub 519 to read pages 42-48 and Form 843 to request the refund. See Internal Revenue Service.

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

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