[loveuabhij]

Hello All,

Following is my employment status:

2007 Jan - May - part time as graduate assistant at university
2007 Jun - Dec - full time on CPT

My employer did not withheld my social security and medicare tax in 2007 while on CPT.

Now in year 2008, I'm on OPT (since 17 dec) and my H1 will get processed making me a dual status candidate. What options should I fill up on non-resident w4 form for state TN so that my employer doesn't withhold my social / medicare tax ?

Do I have to fill up federal 673 and/or 8233?

Thanks.

Abhijeet

[AtlantaTaxExpert]

The date your H-1 becomes effective is the date YOU become liable for Social Security and Medicare taxes.

The W-4 has NO BEARING on this determination.

Your employer probably knows this fact (since he is sponsoring you for your H-1 visa), but if he does not begin to withhold the FICA taxes, you have the LEGAL OBLIGATION to tell him to withhold these taxes on the H-1 visa's effectve date.

[loveuabhij]

Thanks for your answer.
Do I have to write EXEMPT status in w4 line 7?

Abhijeet

The date your H-1 becomes effective is the date YOU become liable for Social Security and Medicare taxes.

The W-4 has NO BEARING on this determination.

Your employer probably knows this fact (since he is sponsoring you for your H-1 visa), but if he does not begin to withhold the FICA taxes, you have the LEGAL OBLIGATION to tell him to withhold these taxes on the H-1 visa's effectve date.

[AtlantaTaxExpert]

No, that will cause your employer to not withhold ANY income tax, and that is NOT a good idea.

[MukatA]

Hello All,

Following is my employment status:

2007 Jan - May - part time as graduate assistant at university
2007 Jun - Dec - full time on CPT

My employer did not withheld my social security and medicare tax in 2007 while on CPT.

Now in year 2008, I'm on OPT (since 17 dec) and my H1 will get processed making me a dual status candidate. What options should I fill up on non-resident w4 form for state TN so that my employer doesn't withhold my social / medicare tax ?

Do I have to fill up federal 673 and/or 8233?

Thanks.
Abhijeet

You are nonresident for entire 2007, and are not Dual status alien for 2007. For 2008 you will file as resident.

Form 673: Statement for Claiming Exemption From Withholding on Foreign Earned ncome Eligible for the Exclusion(s) Provided by Section 911
Form 8233: Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual

Both the above two forms don't apply in your case. In 2007, you will also file Form 8843.

[AtlantaTaxExpert]

Agreed!