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    hemango's Avatar
    hemango Posts: 6, Reputation: 1
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    #1

    Jan 5, 2009, 06:21 PM
    Backup withholding
    Hi,

    I am in US since August 2002 on F1 visa. I was on OPT for 2008 and then changed to H1 visa in Oct 2008. My wife is currently on H4 visa.

    1. Am I on dual status/ resident alien or non-resident alien and what form should I file this year?
    2. Am I subject to backup withholding of interest on savings and CD accounts while on OPT and/or H1?

    Also, I am a citizen of India and had filed 1040NR for 2007.

    Thanks in advance.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
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    #2

    Jan 5, 2009, 09:06 PM

    Probably best to file as a resident for the entire year jointly with your wife using Form 1040.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Jan 7, 2009, 01:48 AM
    You were also a resident alien for 2007; you should amend the 2007 return, filing jointly.
    hemango's Avatar
    hemango Posts: 6, Reputation: 1
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    #4

    Jan 7, 2009, 05:38 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    You were also a resident alien for 2007; you should amend the 2007 return, filing jointly.

    In that case, does it affect the Social security and medicare taxes since these were not deducted by my employer while I was on OPT?
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #5

    Jan 8, 2009, 05:34 AM

    Yes, it does affect social security / medicare taxes. You should have been paying these for 2007.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #6

    Jan 8, 2009, 08:29 AM
    Agreed; you have the legal obligation to inform your employer of these facts. Do so by letter or email.

    Once the employer is informed, the situation is out of your hands. The employer must take the approproate corrective action to collect the 2007 unpaid FICA taxes.
    hemango's Avatar
    hemango Posts: 6, Reputation: 1
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    #7

    Jan 8, 2009, 02:28 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    Agreed; you have the legal obligation to inform your employer of these facts. Do so by letter or email.

    Once the employer is informed, the situation is out of your hands. The employer must take the approproate corrective action to collect the 2007 unpaid FICA taxes.

    Thanks for your prompt reply. Also, as a resident alien am I subject to backup withholding of interest on savings and CDs?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Jan 12, 2009, 08:48 AM
    You should NOT be subject to such backup withholding.

    If you submit Form W-9 with the bank in question, then no backup withholding will be done.
    hemango's Avatar
    hemango Posts: 6, Reputation: 1
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    #9

    Jan 12, 2009, 05:26 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    Agreed; you have the legal obligation to inform your employer of these facts. Do so by letter or email.

    Once the employer is informed, the situation is out of your hands. The employer must take the approproate corrective action to collect the 2007 unpaid FICA taxes.
    For Jan-Sep 2007, I was a PhD student and received a stipend from my university. Do I still have to pay FICA taxes during that period?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #10

    Jan 14, 2009, 11:32 AM
    The stipend is normally NOT considered to be earned income, in which case it is NOT subject to FICA taxes.
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