[queries]

Greetings!
I have a question regarding Social Security and Medicare Tax charged during F1-OPT.
My first employer deducted SS and medicare taxes while I was working for them during my F1-OPT. My OPT was from May 8th 2006 through May 8th 2007.The same employer filed for my H1-B which was to come into effect on Jan 16th 2007.
1)But for first 20 days of my joining this employer, I was treated/paid as an independent contractor as I did not have my OPT card in hand( OPT was delayed by few

Days in reaching me. Though my OPT date shows the same date I joined the employer). And thus filed a 1099 during my tax filing for 2006.

2)After that I was on the employer's payroll. I was on the employer's pay roll approx May 20th to Oct 12th.

Question 1)I wish to know if I can redeem the taxes charged for SS and medicare during the period I worked during my F1-OPT
Question 2) When I filed my 1099 with the help of a AARP Tax-Aide consultants here in Lexington-KY, would I have paid for SS+Medicare when filing this too. How can I make changes on this one too?

Current Status: Since Jan 16th 2007, I am working with a new employer who filed for my H1 transfer and running my paystubs on H1.

Kindly let me know if I can avail back the SS and medicare that my previous employer charged while I was on F1-OPT (both W2 and 1099)and if so how do I go about it.


Thank you

Priya

[AtlantaTaxExpert]

Priya:

1) Yes, you can request a refund of the Social Security and Medicare taxes withheld during your OPT period. You should first request that the employer refund these taxes. When he refuses, get the refusal in writing, then submit Form 843 to the IRS for the withheld Social Security and Medicare taxes. Contact me using either PM ot at my email address below if you want professional help doing this.

2) If you file a dual-status return, you do NOT have to pay self-employment taxes (which is TWICE the amount of Social Security and Medicare taxes) on the 1099 income earned while under the OPT. If you file as a resident alien (an option available to you ONLY IF you are married), you would have to pay self-employment taxes on the 1099 income.