Ask Experts Questions for FREE Help !
Ask
    aforaslam's Avatar
    aforaslam Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Jul 25, 2007, 03:15 PM
    Can I claim FICA excemption for short term gains
    Hello,

    I am working full-time and am currently on my OPT, therefore I am FICA exempt.
    Some of my stock options vested recently and I sold a part of it. Now, under my E-Trade
    Account I see that there is a total tax deduction of 43.13% :fell off my chair:

    My question is will I be able to get my FICA exempted (about 9%) while I file my
    Tax returns for this year?

    Additionally I was awarded some bonus this year. The tax on the bonus was more than
    That they usually deduct from my ordinary salary (since FICA was not exempted on it). Will I
    Also be able to get it back during tax returns?

    Just Curious :rubbing hands together: :D

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

    Jul 27, 2007, 10:53 PM
    AT:

    If the options were exercised and sold during your OPT period, then you should be able to claim a refund of the withheld Social Security and Medicare taxes using Form 843.
    aforaslam's Avatar
    aforaslam Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Jul 27, 2007, 11:30 PM
    Quote Originally Posted by aforaslam
    Hello,

    I am working full-time and am currently on my OPT, therefore i am FICA exempt.
    Some of my stock options vested recently and i sold a part of it. Now, under my E-Trade
    account i see that there is a total tax deduction of 43.13% :fell off my chair:

    My question is will i be able to get my FICA exempted (about 9%) while i file my
    tax returns for this year?

    Additionally i was awarded some bonus this year. The tax on the bonus was more than
    that they usually deduct from my ordinary salary (since FICA was not exempted on it). Will i
    also be able to get it back during tax returns?

    Just Curious :rubbing hands together: :D

    Best,
    AT
    Thanks a bunch! I will assume this will also apply to the bonus as well.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jul 29, 2007, 09:42 AM
    It should apply to the bonus as well.
    aforaslam's Avatar
    aforaslam Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Feb 28, 2008, 07:27 PM
    Quote Originally Posted by AtlantaTaxExpert
    It should apply to the bonus as well.
    OK. Now this is weird. I was in the process of filing my taxes for 2007,
    And my tax consultant says that Short term gains are not FICA exempt
    For OPT candidates :eek:

    I have already filed my taxes (he put me as non-resident 1099 - as I was on OPT
    Pretty much for the whole 2007). What do you suggest?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Short term vs long term capital gains, loss carryovers [ 4 Answers ]

Back in 2000 and 2001, I had short term capital losses that exceeded the 3000 dollar limit. Each year, I've been able to deduct 3000 dollars since my short term gains have been minimal. I still haven't used up all my 2000 and 2001 short term losses. I had some long term gains in 2000, but...

FICA Tax must paid by employer or Employee? Is there any excemption in it? [ 2 Answers ]

Hi Experts, I am on H1B visa , working in GA. 1. does the FICA tax needs to be paid by the employer or by employee? 2. is there any exemption based on annual income? If yes what should be the yearly income to get rid of FICA tax? I am curious to know the answer for these Payroll...

Long Term Capital Gains? [ 1 Answers ]

I used TaxAct to do my 2005 taxes. During 2005 I sold stock that I held for more than 2 years. When I reviewed the TaxAct print out, there was no discount on the gains from the stock sale. When I sold stock in the past (long term), only a portion of the gains was recorded as income. Is long term...

Is short-term or long-term debt more stressful to your personal finances? Why? [ 4 Answers ]

Is short-term or long-term debt more stressful to your personal finances? Why?

Short-term capital gains from stock sales [ 2 Answers ]

"Short-term stock gains are taxed as ordinary income. Therefore, the nominal tax rate will be whatever tax bracket you are in. More explicitly, it will be taxed at the federal tax rate (bracket) as determined by your taxable (not gross) income line on your federal tax return." If all of my income...

View more questions Search