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    lauta76's Avatar
    lauta76 Posts: 3, Reputation: 1
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    #1

    Jul 31, 2007, 05:15 PM
    F1 OPT to H1B - Can I delay paying FICA?
    Hi,
    I am on F1 OPT status now and my H1B status is slated to begin Oct 1, 2007. Once the H1B status starts, I believe I'll have to pay FICA taxes. This being the case, can I delay activating my H1B status until my OPT expires in June 2008? (to save on FICA... huge student loans so any amount would help!)

    Any advice would help. Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 1, 2007, 12:21 PM
    Note that student loan interest is deductibel whether you file as a resident or non-resident alien.

    That said, if you can delay activating your H-1B visa, do so.

    However, there is a definite quota on the number of H-1B visas being authorized. If you delay past the current 1 October 2007 activation date, there may not be any visas left for you come 1 June 2008, which means you would have to return to your home country and wait for the 1 October 2009 quota.

    You need to ask yourself if you are willing to take that chance.
    lauta76's Avatar
    lauta76 Posts: 3, Reputation: 1
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    #3

    Aug 1, 2007, 08:56 PM
    Good advice on the tax deductibility of the student loan interest.

    As for the H1b quota, since I've already 'won' the lottery in April, I believe it will definitely be made available to me. It's just that I've heard we will be 'forced' to convert to H1b status on Oct 1, even though my OPT ends in June 08. It's this part that I'm unsure of...
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Aug 2, 2007, 12:34 PM
    You are correct about being "forced" to convert to H-1B status on 1 October 2007 if that is the effective date of the H-1B visa.
    lauta76's Avatar
    lauta76 Posts: 3, Reputation: 1
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    #5

    Aug 2, 2007, 09:56 PM
    Thank you Sir!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Aug 3, 2007, 06:49 PM
    Glad to help!
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