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    crazee85's Avatar
    crazee85 Posts: 82, Reputation: 1
    Junior Member
    		  
    #1

    Sep 16, 2011, 01:15 PM
    F-1 student after 5 years in US
    My friend came to US in Aug 2007 on F-1 visa. So I understand that his 5-years end in 2011, and he would be a resident alien from Jan 2012.

    He will be filing f1040nr and f8843 for the last time for 2011, and will start filing f1040 from 2012 onwards.

    However, I had a few questions for the time he will be on F-1 or F-1 OPT in 2012:
    - Will he have to pay FICA taxes (social security and medicare)?
    - Would the bank interest be taxable or exempt from taxes?

    Thanks!
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
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    #2

    Sep 16, 2011, 01:48 PM
    If he is paid wages or is self-employed the money would be subject to FICA. If his income is a scholarship, that would not be subject to FICA. Bank interest is taxable to resident aliens
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Sep 16, 2011, 01:57 PM
    He becomes liable for FICA (Social Security and Medicare) tax withholding on 1 January 2012.

    The bank interest becomes taxable on 1 January 2012; prior to that date, it is tax-exempt.
    crazee85's Avatar
    crazee85 Posts: 82, Reputation: 1
    Junior Member
    		  
    #4

    Sep 16, 2011, 02:16 PM
    I was afraid that this would be the case... Thanks for confirming that...
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Sep 18, 2011, 06:19 PM
    Glad to help!
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