[Juliette453]

Hi Everybody,

I have worked in the US since 02/2007.
Between 02/2007 and 07/2008, I was with a J1 visa,
Then since 08/2008, I work with a H1-B visa.

One told me that "Nonresident J-1 visa holders are generally exempt from FICA for the first two calendar years that they are in the United States".

Does-it mean that I can be totally exempt of FICA and SS taxes for the whole 2008 year?
Or should I split the year in two?

Thanks for your help,

Juliette

[MukatA]

If you are single you will file non resident tax return Form 1040NR or 1040NR-EZ with Form 8843.

During H1-B income, you must pay social security and Medicare (FICA) taxes. Your income during J1 is exempt from FICA taxes. On your return, you will get personal exemption of $3,500 and treaty deduction for J1 income.
Make sure that your employer withholds FICA taxes during H1-B.

[AtlantaTaxExpert]

Also note that the J-1 exemption that allows you to file as a non-resident alien normally expires at the end of the second calendar year as well.

This means that, unless there is a tax treaty provision that provides otherwise, you will file as a resident alien, filing Form 1040 for 2009.

That really does not affect you, due to your H-1B visa status, but it is good-to-know information for the forum reading public.