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    Gabimouse's Avatar
    Gabimouse Posts: 2, Reputation: 1
    New Member
     
    #1

    Feb 1, 2006, 07:51 PM
    Tax excempt with OPT from Medicare and Social Security
    Hey,
    I am in my OPT ( after F1) at the moment and I just received my first paycheck on which the company deducted Medicare and Social Security. As of my knowledge I do not have to pay these two deductions. I did ask our company accountant... but she just told me that she is by law requierd to take these deductions. My question is how do get the money back? Or what do I do in the future in order not to pay Medicare and Social Security? Can I maybe claim it back at the end of the year with my tax return?
    What do I need to do in my case?
    Further I was wondering if the same laws apply as a holder of H1B?
    Thanks for your reply.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Feb 1, 2006, 08:55 PM
    GabiMouse:

    Unless you have been in the U.S. for over five years, you are exempt from Social Security and Medicare taxes. Download IRS Pub 519 from www.irs.gov and have the company accountant review it.

    Be nice about it (no professional wants to be shown to be ignorant), but insist that you should not have to pay these taxes while on F-1 visa status.
    Gabimouse's Avatar
    Gabimouse Posts: 2, Reputation: 1
    New Member
     
    #3

    Feb 2, 2006, 07:24 AM
    Thank you very much for your reply. I guess in my situation I have to pay ( I am in my sixth year as of January).
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Feb 2, 2006, 12:37 PM
    Yes, the sixth year does make a difference.

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