[salmanhyder]

Hello Sir,
I came to United State in January, 2002 on F-1 visa and graduated in August 2006. I got my OPT in September, 2006 and my OPT ended in September, 2007. The issue over here is that I have paid SSN and Medicare taxes since January, 2007 and I was still on my OPT. I tried calling HR and they said that I have been in USA for over 5 years so even though I am on my OPT, I still have to pay SSN and Medicare taxes. My friends in the same situation but in different organizations are not paying SSN and Medicare taxes. Please provide me with a better understanding of my issue. I will appreciate it.

Thanks

Salman

[MukatA]

Yes, it is slightly complicated. All you can do is to try to get the taxes back from IRS. First ask your employer to refund you the SS and Medicare taxes withheld by them. Then, if employer does not refund it, file Form 843.
Read about filing Form 843: Your U.S. Tax Return: Social Security and Medicare (FICA) Taxes for Non-resident Exempt Individual
I am not sure if you will get it back or not. May be some one else has better idea.

Your friends did not pay FICA taxes. Now they are not in the same situation as you are.

[actaccord]

Hi,

I am here on H1b with family (2kids) from Feb 11 2008. When I saw my first pay slip I did saw there SST & Medicare was deducted (not the Federal & State Tax). When I asked about that my company account person told that my income on that period is well below the taxable amount (worked only for 1 week). But from the second pay slips (till now 4 pay slips) I see Federal & state tax got deducted but not the SST and Medicare, when I question about this my company accountant told that I don't have to pay SST & Medicare because I am on H1b. I did verified with few of my friends working on H1b, every one says I have to pay SST, Medicare, Federal and State Tax. When I shared this information with my company account person, he/she still stands on his/her own words (no medicare and SST for h1b). I am really confused with these tax issues. I don't want to get into issues at later stage because didn't paid my taxes properly. Can any one guide me on the taxes in have to pay and what are the exemptions I am eligible for. Thanks in advance.

[salmanhyder]

You don't have to pay any SSN and Medicare taxes now. You are exempt from these taxes for the first five years in USA. After that you will start paying it. You only pay SSN and Medciare taxes on your H1-B is you have lived in USA for 5 years already. Hope this answers your question.

[raju79]

You don't have to pay any SSN and Medicare taxes now. You are exempt from these taxes for the first five years in USA. After that you will start paying it. You only pay SSN and Medciare taxes on your H1-B is you have lived in USA for 5 years already. Hope this answers your question.

Please don't provide the wrong info to others, if you don't have complete information. The 5 year rule is only on F1 (students and some other non-resident visas). Meaning for first 5 years of your F1 you are non-resident, but after it you are resident of states by this rule. salmanhyder: Your employer is correct to know that. You should file your taxes as resident from next year onwards.

Actaaccord: H1 is a resident visa, and you have to pay your FICA taxes (medicare and SSN), no matter you are in 1st or 6th year. Ask your empolyer to get their facts straight. Empolyer also have to match the employees FICA taxes. So, start paying it, before it gets too late. And you have to file strings of amendments.

Hope this helps.

[AtlantaTaxExpert]

V#$ agreed with Raju. From 2002 through 2006, you were exempt from FICA taxes. However, that exemption expired on 31 December 2006.

For 2007 onward, you ARE liable for Social Security and Medicare taxes regardless of your visa status.

[salmanhyder]

Thanks a bunch!

[AtlantaTaxExpert]

Glad to help!