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    korei's Avatar
    korei Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Aug 5, 2007, 01:03 PM
    J1 to L1 - Resident or Non-Resident in 2007
    Hi,

    I live and work in NYC.

    I have a J1 visa which expires on Oct 31, 2007. Afterwards, I will be on an L1.

    Under the J1, an individual cannot be a resident alien. Hence, no Social Security, Medicare and NYC taxes are withheld at the moment. I do pay Federal and State taxes though.

    As a L1 visa holder and as I am residing in the US for more than 300 days in 2007, I will definitely have to pay Social Security, Medicare and NYC when I have the L2.

    However, do I have to pay Social Security, Medicare and NYC taxes for the whole 2007 or only the "L2-part" of 2007?

    Technically, I have an L2 and I am a resident alien by 12/31/2007... but I would like to avoid paying back Medicare, Social Security and NYC taxes for 10 months (Jan-Oct)

    Thanks for your help.

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

    Aug 6, 2007, 02:46 PM
    Kolja:

    You become liable for Social Security, Medicare and NYC taxes on the effective date of the "L" visa. Anytime before that, you are exempt.

    Even though you are a "resident" on 31 December 2007, you would still file as a non-resident alien for 2007 because you have not yet met the Substantial Presence Test (SPT for 2007.

    The days PRIOR to 1 November 2007 do not count towards SPT.
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