Hi, Atlanta Tax Expert:

It's nice of you helping so many people on the Ask Me web. I also have something needing your answer

I'm single, holding H1B visa. I came from China on Sep14th,2006. According to the treaty between U.S and China governments, my tax was waived last year ,however the social security and medical care was deducted from my wage.

Could I ask: what kind of tax form should I fill, because I never fill it before?

Can the security and medical care be refund ?

Thanks in advance
Chunsheng

Chunsheng:

I do not believe your taxes were waived last year. The H-1B visa is a work visa, and H-1B visa holders are subject to the same taxes as U.S. citizens.

The withholding of Social Security and Medicare taxes was correct and proper. You can request a refund, but it would NOT be granted.

You need to file Form 1040NR or 1040NR-EZ for your income tax. The first $5,000 of your wages will be exempt from taxation under the U.S.-China Tax Treaty, and the next $3,300 is tax-free due to your personal exemption. After that $8,300, you can then claim itemized deductions.

Any income not offset by these deductions is, first at 10%, then 15% and then at 25%.