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    Landlord86's Avatar
    Landlord86 Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Dec 21, 2008, 12:00 AM
    SS and Medicare tax under OPT
    I came to US in August 2003, finished my studies in May 2008 and started working full-time (OPT) from August 2008. Currently I am paying both SS and Medicare taxes. Do I have to pay these taxes as I am working in OPT and technically still under F1 visa? Or am I considered resident alien since I have been in US for 5 years?
    Thanks,
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Dec 21, 2008, 04:18 AM

    On F1 you are exempt from residency for 5-years so from the sixth year you must pay SS and Medicare taxes.
    You will file resident tax return in 2008.
    Landlord86's Avatar
    Landlord86 Posts: 4, Reputation: 1
    New Member
    		  
    #3

    Dec 21, 2008, 07:32 PM

    Thanks for the reply. Since OPT has been extended to 29 months, any chances that the 5 year period also be extended? And will I get refund for SS and medicare taxes?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Dec 23, 2008, 06:53 AM
    You CAN avoid paying Social Security and Medicare taxes by filing Form 1040NR and 8843 for 2008 AND submit proof that you are maintaining a "closer connection" with your home country.

    Burden of proof for this closer connection is on you, and if you apply for a H-1B visa, that action will disallow any claim for closer connection.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #5

    Dec 23, 2008, 01:46 PM

    I agree that you may be able to claim nonresident status, but that the burden of the closer connection to your home country is on you. If you apply for a green card, then you likely will not be successful in arguing that you are temporarily present in the U.S. The regulations do not identify such a bright-line test for applying for a H1-B visa.
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