Hi there,

I was on F1 status from July 2001 to Oct 2005, then I was on F1-OPT from Oct 2005 to Oct 2006. I was hired in June 2006 under OPT. I have been on H3 since Nov-2006. Soc and medicare have been deducted from my paycheck even if I was on OPT.

1.) During the first 4 months of work under OPT, am I exempt for soc and medicare tax?
2.) a friend of mine told me that in order to get soc and medicare tax refund, I need to file
1040NR. Is my friend's statement correct?
3.) What form should I file base on my 2006 status? 1040 or 1040 NR?

Thanks a lot

Stu

1) Yes, if you filed Form 1040NR for 2005.

2) Yes, you have to file Form 1040NR for 2006 if you want a Social Security and Medicare tax refund (need to file Form 843).

3) File Form 1040NR. You have not qualified for dual-status, which offers no benefits in any event.

Quote:

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Originally Posted by AtlantaTaxExpert

1) Yes, if you filed Form 1040NR for 2005.

2) Yes, you have to file Form 1040NR for 2006 if you want a Social Security and Medicare tax refund (need to file Form 843).

3) File Form 1040NR. You have not qualified for dual-status, which offers no benefits in any event.

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Thanks for you super quick response! Here is my follow up question

1.) I just realized that I can be exempt for social secuirty and medicare tax for the first 5 calender years only since I arrived in the states. I started working in June 2006 under OPT, which was my 6th calender year (I got here in July 2001). Does that mean even if I file 1040NR plus form 843, I am NOT eligible for the tax refund? Should I give it a try?

2.) If I am not eligible for social security and medicare tax refund, should I file form 1040 for 2006? Because I will have more tax return with form 1040 than with form 1040NR

Thanks a lot

Quote:

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Originally Posted by ahtsan2002

Hi there,

I was on F1 status from July 2001 to Oct 2005, then I was on F1-OPT from Oct 2005 to Oct 2006. I was hired in June 2006 under OPT. I have been on H3 since Nov-2006. Soc and medicare have been deducted from my paycheck even if I was on OPT.

1.) During the first 4 months of work under OPT, am I exempt for soc and medicare tax?
2.) a friend of mine told me that in order to get soc and medicare tax refund, I need to file
1040NR. Is my friend's statement correct?
3.) What form should I file base on my 2006 status? 1040 or 1040 NR?

Thanks a lot

Stu

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By January 2006 you have exhausted the right to claim exempt individual status and you are a resident from 2006 onwards. This means you are also subject to social security tax and you need to file a 1040.

TaxSearcher:

Good catch! I have got to stop answering questions at 1:44 A.M.

Ahtsan:

Use TaxSearcher's guidance for 2006.