[melboma]

Hello everyone!

I was reading about the taxes related to the OPT an I have a few questions since I am done with my OPT in January and I paied medicare and social security taxes by error.

1.- When I should file Form 843?
2.- If my employer gives me the money back, how this affects him? Is he losing that money?
3.- they normally give it to you back or not?IT TAKES LONG?
4.- They send you a check?

THANKS A LOT!

[AtlantaTaxExpert]

Your first course of action is to talk to the employer and ask HIM for the refund. He has to get a refund from the IRS, but that is actually NOT ALL THAT HARD.

It benefits the employer as well as you, because the employer matched what you paid dollar-for-dollar, so when you get your money back, he gets his money back as well.

How long does it take? Anywhere from two weeks to four months. It depends on the employer and the timing of the request. Form 941 is filed quarterly, and the next one is due on 15 Jan 09. The employer will ask for the adjustment of your refund on the 15 Jan 09 Form 941, and may wait until then to refund your money.

Or he can refund your money right away out of his cash reserve and get his money come January 2009.

If you ask for the refund from the IRS, they will first ask for some documentation from the employer that they have no intention of requesting the refund via the process noted above. Then they call the employer to verify the documentation. If everything seems to be kosher, they then send you a check. But it is possible that they will then ask for the money BACK, because the employer then submits and get the refund as noted above. This exact process happened to a client of mine this past year, and she was forced to return the check (plus interest) and seek reimbursement from her former employer. Not sure whether she got it or not.

BOTOM LINE: Get the refund from the employer if at all possible. It's less complicated and mucher cleaner that way.

[melboma]

Thanks a lot for your help!! It was greattttttt!!
I'm going to try to get it from my boss! if not maybe I have to contact you... he he

Take care

[AtlantaTaxExpert]

Glad to help!

[melboma]

Can I ask you what happens then with the federal taxes, because I know that the ones that you get back are social security and medicare.

Do they give it to you back?

Thanks a lot for all your help

[AtlantaTaxExpert]

Federal INCOME taxes are a different issue.

You are liable for those taxes. Now, it is likely that, due to IRS requirements for excessive withholding by foreign national workers, you will be entitled to a refund, but the refund will NOT be for all of the federal income taxes withheld, but only for the amount that exceeds your federal income tax liability.

[melboma]

SO... How can I get them back? The ones that exceed for what I am liable? or how do I know for what I am liable? I know they take a lot of taxes :(

Thanks again!:)

[AtlantaTaxExpert]

You will need to file a tax return, probably form 1040NR-EZ, with Form 8843.

[melboma]

Hello again!

So, I tried to get it trough my employer, but the girl that is in charge of accounting doesn't want to do it, she wants me to do it... no comments.

Which will be my best option? Go to Liberty Tax (they want to charge me 125 or more)or H &R or any of these kind of places so they do it for me... or just do it by myself, even though I don't have any clue how to dit?

Thanks a lot for your help!!

Ps. By the way you work doing taxes?

[melboma]

I have to say that my ex-employer doesn't want to do it because she doesn't know how to do it... and I guess she can't do it now how you told me too, since the 15th of January is gone. And I don't know if she can do it now or she will have to wait until they file their taxes again.

And what do you mean when you say they also ask for your refund? Do they really do that? If I do it myself cause they don't want to do it, they shouldn't ask for them later, right??

[AtlantaTaxExpert]

Melboma:

I DO know how to prepare the annual tax returns and the Form 843 to request a refund from the RS for FICA (Social Security and Medicare) taxes.

Contact me at [email protected] for a fee quote.

[AtlantaTaxExpert]

Get a refusal letter from the employer, then file Forms 843 and 8316.

If you need professional help, email me at [email protected].