Hello,

I have been in the US more than 5 years and I am still a full-time student. I recently found out that my status actually changed from non-resident to resident alien in end 2004 because I have been here more than 5 years. I filed a 1040NREZ for 2005. Since I became a resident alien, I filed the wrong form for 2005. I plan to file 1040X to correct that. My problem is the year 2006. I have done a co-op/internship starting in 2006. My company has treated me as a non-resident and therefore, it has not deducted SSN/Medicare taxes from me. During my co-op, which is my CPT, I still have a full-time student status. If I file 1040 for 2006, do I have to file any forms to pay any SSN/Medicare taxes because my company did not deduct it from my pay checks? If yes, what form will I have to use?

It is even more complicated. In 2006, I also worked for my university before I started my co-op. The university job also did not deduct any ssn/medicare taxes. According to the 2005-11 student FICA exemption, I should not need to pay the ssn/medicare for the university job, is that correct? Thus, if I shall file to pay missing ssn/medicare taxes, I should only file it for the co-op and not the university job, is that correct?

Thank you very much for your help.

I wish you a wonderful day.

Mili

Mili:

Did you inform your company that you in fact were a resident alien?

If so, and they still failed to withhold Social Security and Medicare taxes, yo will not be held responsible. The IRS holds the employer responsible to pay these taxes and to withhold the employee's share from their paychecks. There are no forms for YOU to file.

For the university job, students who work for the university they attend are normally exempt from SS taxes, but have to pay Medicare. Again, withholding is the university's job, not yours!

I mostly agree with ATG's point -

1. Your off campus employment while a resident is subject to FICA.

2. Your campus employment is not subject to either part of the social security tax if you are a full time qualifying student engaged in qualified on campus work.

I think that I did neither officially announce that I am a non-resident or resident to my company. However, I did tell my company that I am an international student. They let me complete all the paperwork for international student. I also provided them my passport, I-95, I-20 and F1. My company should be able to tell from my documents that I have been here for more than 5 years and therefore become a resident alien automatically. Did I inform my company with these documents then?

You mentioned that I will not be taken liable for any medicare/ssn tax deduction. If I don't take any further actions with my employer from here, will I be penalized in any way?


Thank you very much again.

Mili

If you provided a copy of your passport, I-95, I-20 and F1 visa, then I agree. Your employer had more than enough documentation to determine that your exempt status expired after five years.

You will NOT be held liable.

However, be a good citizen and tell your employer your current status and have them start withholding the required taxes.