Ask Experts Questions for FREE Help !
Ask
    goodbody's Avatar
    goodbody Posts: 2, Reputation: 1
    New Member
     
    #1

    Oct 19, 2008, 07:54 PM
    JI Visa Holder Exempt for fed OASDI/EE Fed MED/EE ?
    Hi

    I am doing residency in psychiatry, currently in first year on J1 visa.
    My University is holding OASDI/EE and Fed MED/EE taxes from my salary, while my colleague who is also in first year and on J1 visa is not entitled to these taxes.

    What I have understood so far after searching for all the information is that Being a J1 visa holder I am exempt from these taxes.

    Please help me with my query.

    Does it make any difference the previous visa status. Previously I was on B1/B2 visa.
    Thanks
    goodbody's Avatar
    goodbody Posts: 2, Reputation: 1
    New Member
     
    #2

    Oct 19, 2008, 08:07 PM

    My Current J1 Visa is for alien physician/ research scholar
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Oct 19, 2008, 11:11 PM

    As a J1 trainee (residency) you are exempt from Social Security tax and Medicare tax for two years. You will pay federal income tax and state income tax.

    If you are a research scholar, then also you are exempt from Social Security tax and Medicare tax for two years. About federal income tax you should check tax treaty between your country and the U.S. For many countries, there is no federal income tax for two year.
    Refer IRS pub 519: Tax for Aliens
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Oct 20, 2008, 08:09 AM
    If you are participating as a resident physician, you are considered to be a "trainee", not a research scholar.

    You ARE exempt from Social Security and Medicare taxes for two calendar years, but are still liable for income taxes at the federal, state and local levels.
    khalj's Avatar
    khalj Posts: 3, Reputation: 1
    New Member
     
    #5

    Feb 1, 2009, 07:50 AM
    Quote Originally Posted by AtlantaTaxExpert View Post
    If you are participating as a resident physician, you are considered to be a "trainee", not a research scholar.

    You ARE exempt from Social Security and Medicare taxes for two calendar years, but are still liable for income taxes at the federal, state and local levels.

    Thanks, but why am I only exempt for 2 years, knowing that my visa type requires me to go back to my home country after expiration which is 7 years. That means that I will never benefit from the medicare and SS taxes I'm paying.
    Is there a way to avoid paying those past the 2 years if I show that I'm going back to my country after 7 years?
    Thanks
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #6

    Feb 1, 2009, 10:46 AM

    No.

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!

Can F-1 visa holder without earning be a dependent for H-1b visa holder husband? [ 10 Answers ]

I know that the question is kind of strange, but here is my situation. I am having H1b visa at present (moved from OPT to H1b last September). My wife is a student with F1 student visa (in Illinois Urbana Champaign). But she has completed her residential requirement and since last year has been...

H1B visa holder claiming a Dependent who is on H4 visa? [ 2 Answers ]

I am on H1B visa and my wife is on H4 visa. Can I claim her as a Dependent while filing for the tax return. Do I have to apply for ITIN? Please explain the procedure. Thanks

OASDI & Medicare Taxes Exemption for J-1 visa [ 6 Answers ]

Dear Experts, I am a fellow from Thailand with J-1 visa. I am employed by the U.S. federal government. On my earnings statement, there are deductions for both OASDI and Medicare. Am I eligible for exemption? If so, how do I file for the exemption? Will I be eligible for any tax treaty such...

TAX Exempt for OPT/H1b visa holder [ 1 Answers ]

I have been working in New York from November of 2005 with OPT visa (F-1) and got H-1 visa in October, 2006. I was told I should file tax as a non-resident for 2006 but I'm wondering if I can still claim exempt as a student for the time I worked as a OPT holder. (I did not claim it for 2005) And...


View more questions Search