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    sharathpsasi's Avatar
    sharathpsasi Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 1, 2007, 03:35 PM
    FIT Refund on OPT
    Hi,

    I was working on OPT last year (2006) till 12/3/2006, when I had change of status to H1-B. I was exepmted from Social Security and Medicare Tax duirng that period on OPT. I went to file my tax returns at a tax agent asnd I was told that I would be getting back my entire FIT due to India/US tax treaty deductions. But I was under the impression that for this year its only $5000 and the returns are calculated based on this amount. The agent showed me a Publication 901 from IRS and also the clause that I am exempted from any taxes, but it also had a statement that this was for payments from abroad only and does not include payments borne by permanent establishments in US and other government agencies. What does this mean?

    Am I entitled to get back the entire FIT that I paid? Is it possible? Because I was being paid by an empolyer in US during my OPT.

    Could some one please help me out here.

    Thanks,
    Sharath
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 5, 2007, 11:57 AM
    Sharath:

    Unless your income is less than $8,450, the tax consultant is WRONG.

    You ARE liable for federal income taxes just like U.S. citizens on income earned in the U.S.

    Find yourself another tax consultant.
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