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    sag3boy's Avatar
    sag3boy Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 20, 2007, 06:30 PM
    OPT tax !
    Hi All,

    I am a graduate student and my OPT is starting on 1st Jan, 2008. I heard that while on CPT or OPT, your federal and state taxes are deducted, but you get it back when you file it.

    Do I get all the tax back? Or its based on some calculation? Can anyone please help me with a simple example?


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

    Oct 22, 2007, 09:29 AM
    Sagar:

    You will NOT get all of your federal and state income taxes back, as you ARE liable to pay these taxes. If you over-withhold, you will get a refund back, but that should NOT be your goal, as ANY refnd is an interest-free loan to the government.

    You are NOT normally liable for FICA taxes (Social Security and Medicare) while on OPT, so make sure they do NOT withhold those taxes. If they do and you cannot make the employer see the error f his ways, you can get thise taxes back by filing Form 843.
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