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aleles · Mar 25, 2009, 09:00 AM

lol, I'm an expert =) those guys probably have been studying this stuff for years!

If you can fit everything in 1040ez, then you can probably file it. I will file 1040, because I have a taxable refund (form 1099g that I got because last year as a non-resident I put my state taxes as itemized deductions). This is line 10 on 1040 and there is no such item on 1040ez.

I definitely cannot answer about the grant. However, your husband should have tax preparation sessions in his school (at least I had). I guess you can come together and they will help you both.

kknnbb · Mar 29, 2009, 10:15 AM

See this link.
Aliens Employed in the U.S. – Social Security Taxes

It says about limitation to exemption of FICA/Medicare tax to F1 visa:

Limitations on exemption:

* The exemption does not apply to spouses and children in F-2, J-2, M-2, or Q-3 nonimmigrant status.
* The exemption does not apply to employment not allowed by USCIS or to employment not closely connected to the purpose for which they were admitted into the United States.
* The exemption does not apply to nonimmigrants in F-1,J-1,M-1,or Q-1/Q-2 status who change nonimmigrant status to a status which is not exempt or to a special protected status.
* The exemption does not apply to nonimmigrants in F-1,J-1,M-1, or Q-1/Q-2 status who become resident aliens for tax purposes.

Fourth item makes sure that you have to pay FICA if you treat yourself as a resident alien by making first year choice. Just because you don't know to pay the FICA tax, it doesn't mean you don't have to pay. I read in one of the threads on this forum, that you should notify your employer of the fact that you are treating yourself as resident alien and the employer will have to amend the FICA taxes.

So, I decided that I am not going to make first year choice.

I am going to file as non-resident alien, I get my standard deduction, my personal exemption and my wife's personal exemption.

aleles · Mar 29, 2009, 12:08 PM

Originally Posted by kknnbb

see this link.
Aliens Employed in the U.S. – Social Security Taxes
...
So, I decided that I am not gonna make first year choice.

I am going to file as non-resident alien, I get my standard deduction, my personal exemption and my wife's personal exemption.

kknnbb, thanks for clarification.
So you are getting your standard deduction as a non resident because you are from India, right?

kknnbb · Mar 30, 2009, 06:00 AM

That's correct. Students from India are eligible for standard deduction. I think you can find it in pub. 519 or 501.

lalitha_sankar · Mar 30, 2009, 07:26 AM

Thanks for the clarification.

So I file as non-resident alien married filing jointly?

kknnbb · Mar 30, 2009, 09:37 AM

Lalitha,
You can not file jointly if filing as non-resident. However, you can take personal exemption of your spouse if spouse does not have any income last year apart from interest on checking and saving accounts and also spouse need not to file tax return.

If spouse has income, then non-residents will have to file as married filing separately... and both will have to file.

aleles · Mar 30, 2009, 08:30 PM

I wonder why tax experts suggested to all in our situation to file as residents. Has anyone tried to follow this approach and pay FICA taxes for the F1 part of the year?

IntlTax · Mar 31, 2009, 05:04 AM

The reason it may be better to file jointly as residents is that you can take a standard deduction of $10,900 if you file jointly as residents. The benefit of the additional deduction needs to be compared to the additional cost of the FICA. If the cost of the additional FICA is more than the benefit of the additional deduction, you should not file jointly.

aleles · Mar 31, 2009, 07:37 AM

Originally Posted by IntlTax

The reason it may be better to file jointly as residents is that you can take a standard deduction of $10,900 if you file jointly as residents. The benefit of the additional deduction needs to be compared to the additional cost of the FICA. If the cost of the additional FICA is more than the benefit of the additional deduction, you should not file jointly.

IntlTax, thank you for your reply. What is the procedure to pay FICA taxes? Should we ask our school to take care of it? Also what is the percentage or how to calculate FICA taxes?

Thank you!

Tax_2009 · Mar 31, 2009, 11:02 PM

I have the same question. How do I incorporate the FICA taxes that were not deducted last year? What do I say in my return?

IntlTax · Apr 1, 2009, 04:05 AM

You should try to get your employer to pay the proper FICA taxes. This may be difficult if you are no longer employed by that employer (partly because you have to pay half of the FICA taxes). If you are unable to get the employer to correct, then you should pay your portion of the FICA taxes on Form 8919, with an attached explanation as to the circumstances.

AtlantaTaxExpert · May 28, 2009, 02:17 PM

You will NOT owe FICA taxes for your F-1 period if you opt to file jointly.

kknnbb · May 29, 2009, 05:50 AM

Thanks AtlantaTaxExpert,

I have already filed as married filing separately. If I do not have to pay FICA for my OPT period, I should have filed jointly and got some refund.

I guess - I can still file the tax amendment.
Could you please tell us where did you get this information about not filing FICA for OPT period.

Thank you.

AtlantaTaxExpert · May 29, 2009, 11:05 AM

Conversations with the IRS International Tax Hotline.

kknnbb · Jul 7, 2009, 07:53 AM

Hi,

Could you guys please share what you did eventually for tax return and what happened to your tax return, I mean accepted or rejected.

My wife's ITIN request is rejected. Probably because of W-7 application and tax returns were not kept together, although I submitted both together.

I am requesting again to reconsider W-7 by sending copy of tax return.

If not accepted, I will file as married jointly and make first year choice.
What do you say? Did anybody come to know anything about FICA taxes?

Thank you,

aleles · Jul 7, 2009, 08:20 AM

Hi,

It worked for me! Thank you experts and all who participated in many our discussions here. I filed jointly in June after I met the SPT along with W7 for my wife. We just got her ITIN and the refund. No questions asked about FICA for the F1 period. I'm now filing state and local returns to two states. Will post here later.

Cheers!

AtlantaTaxExpert · Jul 7, 2009, 01:06 PM

If you filed jointly for 2008, you are NOT liable for FICA (Social Security and Medicare) taxes for that year retroactively.

This issue was resolved on other posts several times over the past five months.