[jmb22]

Hi,

I am on H1B since January 2007 (I was on J1 since September 2003). I am working part time as an adjunct, for a Private University .

Here are few questions :

1) Because I am part time worker, I am not entitled to benefits by my employer (so no health Insurance). I am wondering why it does appear on my paystub a MEDICARE DEDUCTION.
What's this deduction for?

2) On the paystub, it appears a Deduction of ~$100 for "NYC RES".
Does it relate to my home address?
Since June 2007, I moved to Queens. So, I expected my employer would have updated my file and replaced "NYC RES" by something like "QUEENS RES."

3) I have French citizenship. I have been paying FICA for some years now. If I decide to come back to France in few years, is this money (FICA deductions) be lost, or would I have any benefit of it in France by some international agreement similar to the "totalization".

Thank you very much.

JM

[ebaines]

Hello JM. Let me try to answer your questions:

1. Medicare tax is withheld at a rate of 1.45% of your federal wages. This is to fund the federal medicare progran, which provides health benefits for senior citizens.

2. Remember that Queens is part of New York City - as a borough of the city it does not have its own income tax, but its residents are subject to the NYC resident income tax. The only way to avoid this is to move out of New York City.

3. My understanding is that under "totalization" your social securty tax contributions are effectively "sent" to France, so that when you retire and are living in France you will get credit from the French government for the work you did while employed in the US on your H-1B visa. See: Description of the U.S.-French Social Security Agreement

[jmb22]

Thanks a lot... very helpful.

[AtlantaTaxExpert]

Ebaines covers all pertinent issues. I have nothing to add.