[kcissy79]

Hi there!

I was on F1 student visa since 98 Aug and started my OPT on Jan 05. I lived in New Jersey and find a job recently. I have few question regarding the tax:

1. Do I have to pay NJ SDI (disability) tax when I am on OPT/H1?
2. I am applying my H1 visa and I believe I won't get it till December. Do I get any other exmption regarding to the tax?
3. I understand that when I am on OPT, I only need to pay the Federal and NJ state tax.. how about when I started my H1?
4. I am from Hong Kong and does Hong Kong has any tax treaty with the States? I am not sure if Hong Kong counted as part of China plus I am holding a BNO passport (British national overseas).

Thank you.

[AtlantaTaxExpert]

Kcissy79:

I believe is legally considered a part of the People's Republic of China,but a phone call to the IRS Center in Philadelphia (you should be able to get the phone number from www.irs.gov) will verify that.

While on OPT and a F-1 visa, you are liable only for income tax from the United States and New Jersey governments as a non-resident alien. For 2005, you should file Form 1040NR or Form 1040NR-EZ.

However, when you switch to H-1 status, the day it becomes effective is the day your employer should begin withholding Social Security and Medicare taxes. Until then, you are exempt from Social Security and Medicare tax withholding.

As for the NJ SDI tax, I do not know. However, a phone call or e-mail to the NJ state taxing authority should get you an answer reasonably quick.