[tax_confusion]

Hello All,

I have an option of either work on OPT for one year and then switch to H1 or work under H1 status from the starting.

I heard there is a difference in taxes that you pay under the two status.

Please let me know under which status do I pay less taxes.

Also any other factors I should consider before making my decision.

I will be working for a state funded university.

Thanks,

[MukatA]

On F1/OPT you are exempt from residency for 5-years. Income not subject to FICA taxes. Must file nonresident tax return. Do not get standard deduction; you get itemized deduction. You get extra deduction as per tax treaty.

On H1-B, your presence in the U.S. count toward substantial presence test (SPT). Must pay FICA taxes. If you qualify for resident tax return, you get standard deduction or can opt for itemized deduction.
Read Your U.S. Tax Return: The U.S. Visas

[AtlantaTaxExpert]

Moe than likely, working on OPT will save you more on taxes because of the FICA tax exemption.