Hi,
My name is Suresh,I was on the OPT for the whole year 2011.My H1b is starting from this year Feb'12.So Can I get full refund of Social Security,Medicare,Federal Withholding and State Taxes... if it is can you please tell me what is the forms for social security and Medicare... Do I have to file regular 1040 or 1040-NR? please guide me,I am new to this and also give me some suggestions... Thanks for your help and I will look forward to hearing from you again...

Suresh:

You CAN get a full refund of the FICA (Social Security and Medicare) taxes for 2011, because you were EXEMPT from those taxes IF you arrived in the U.S. on your F-1 visa on or AFTER 1 January 2007. However, the IRS requires you attempt to get the refund FIRST from the employer. If the employer refuses to refund the withheld taxes, try to get a refusal letter from them on company letterhead stating HOW MUCH in FICA taxes were withheld, why they refused to refund, plus a name and phone number of a company point-of-contact. This letter is NOT absolutely essential (we can get refund without it); it just makes the process go a LOT faster.

Once you have the letter, we can submit Form 843 and 8316, along with some support documents, to the IRS. If all goes according to plan, it takes about 3-6 months to get the refund direct from the IRS. If your employer agrees to get the refund, it should take about ONE month.


As for the federal and state taxes, you ARE liable for those, since the income on OPT was earned while working INSIDE of the United States. You will file Form 1040NR or 1040NR-EZ PLUS Form 8843, plus the state tax return. You file the state return as a non-resident.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.

Thanks for your quick response,I really appreciated. According to our suggestion,I don't get all the Federal Withholding.. If I file form 1040 NR.. If I use INDIA-US TREATY ARTICLE 22... I can get all the refund... Can I do like that?. Sorry to trouble you.. I am just confusing... please provide me the answers..

First of all you must file your tax return Form 1040NR or 1040NR-EZ and Form 8843. You will claim standard deduction (instead of itemized deduction as per tax treaty. Tap://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html