[konradsa]

Hi everybody,

I have already learned in this great forum (https://www.askmehelpdesk.com/taxes/...ent-63992.html) that I need to file taxes for 2006 as a resident (thanks to AtlantaTaxExpert and taxsearcher!), since I have been in the country for more than 5 years.

I am currently working on F1/OPT and as such my employer does not withhold FICA taxes. Does the need to file 2006 as a resident change that, or am I in the clear as long as I am on F1? Do I need to notify my employer that I am filing 2006 as a resident?

Thanks in advance!
-- Sascha

[AtlantaTaxExpert]

Sascha:

No, you are clear for 2006 for Social Security and Medicare taxes.

However, you need to tell the employer that you are now a resident alien. Expect to pay some back withholding on the SS and Medicare taxes.

[taxsearcher]

No doubt. If you are filing as a resident, you should have been paying social security taxes. Talk to your employer asap.

[konradsa]

Hi,

I notified my employer now, let's see what happens.

But I am still not clearly, your answers seem to be contradicting. If I am exempt from FICA while on F1, why would I have to pay some back withholding now? What happens to this back withholding?

Thank you both so much for your advice, it's greatly appreciated. Why does the IRS have to make this so complicated? :-)

[AtlantaTaxExpert]

The back withholding will be for the 7 weeks in 2007.

By law, the employer cannot collect for 2006 anymore.

[taxsearcher]

Well, except that you effectively misinformed the employer (by electing to file resident but not telling the employer). If I'm the employer, I'm holding you responsible for that :)

[AtlantaTaxExpert]

What TaxSearcher says is technically correct.

However, I suspect that the employer will not want to open that can of worms, because he would be subject to some significant fines if he amended his last Form 941 to include your 2006 Social Security and Medicare taxes.

Inform your employer and see what happens, but I suspect he will only try to collect the 2007 taxes.

[konradsa]

Ok,

I informed my current employer (for who I have been working since Oct 2006, the start of my OPT) and they said:

"Thank you for informing us about exceeding the 5 year exemption period of the F1.
HR is aware of your visa situation and you are coded correctly in our system."

So I guess that means they still will not withhold FICA taxes as long as I am on F1.

I am still waiting to hear back from my university where I worked under my F1 until Sept 2006.

-- Sascha

[AtlantaTaxExpert]

See, I told you! :-)