[mr_mystic]

Hello Gurus,

I came to US in July 2001 on F1.I have filed the 1040 NR and 8843 for tax years 2001-2005.

I have been on CPT (still F1 but working for an employer outside university) from 2006 June until March 14th 2007. When I filed for taxes in 2007 for the year of 2006, I filed just the 1040. I was taxed ssn and medicare taxes starting my employment in June 2006 until Dec 2006 where I was on F1 and CPT.

Now to complicate things further, my OPT began on march 15th and lasted until Oct 1. I was on part-time CPT from jan 1,2007 to March 15th,2007 and was taxed ssn and medicare.

Now I am on H1 from Oct 1 onwards.

My question is

For they year 2006 and part of 2007, am I subject to ssn and medicare taxes as I pass the substantial presence test or am I exempt due to the tax treaty between india and US?

Thanks in advance,
Sri

[AtlantaTaxExpert]

While you are on F-1, you are EXEMPT from Social Security and Medicare taxes.

You can file Form 843 to request a refund of these taxes. Your visa status (F-1) is key.

[mr_mystic]

While you are on F-1, you are EXEMPT from Social Security and Medicare taxes.

You can file Form 843 to request a refund of these taxes. Your visa status (F-1) is key.

Hmm.. independent of how long I am on F-1?

[AtlantaTaxExpert]

There IS a limit of five years under the F-1 visa.

Assuming you were under the F-1 for at least ONE day in 2007, you must have arrived in the U.S. on or after 1 January 2003 under your F-1 visa to retain your tax-exempt status for 2007.

If you arrived in the U.S. on your F-1 visa ANYTIME in 2002, your tax-exempt status under the F-1 visa expired on 31 December 2006. If this is the case, you would be liable for Social Security and Medicare taxes for 2007 irrespective of your F-1 visa status.