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    som_mojo's Avatar
    som_mojo Posts: 1, Reputation: 1
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    #1

    Aug 23, 2006, 06:36 PM
    F1-H1B: whendoes the medicare/SSN tax clock start?
    I am currently on OPT that will expire June 2007. In the meantime, my H1B has been approved for Oct 2006 onwards. On OPT I don't have to pay extra taxes for Social Security and Medicare but I guess as H1B I will have to. Now let's assume I get my h1B stamped on Nov 25.

    1. Am I right that up to Sept 30, SS/Medicare taxes will not be deducted?
    2. Am I right that Nov 25 onwards these taxes will be deducted?
    3. What happens between Oct 01 and Nov 24? Are SS/medicare taxes deducted?

    I am just trying to see if deferring the H1B stamping would give me a tax break on the SS/medicare front. Also if I do defer the stamping, what are the disadvantages (of course, I can't travel out of the country and come back without a visa)?

    Thanks much for any pointers.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Aug 24, 2006, 06:40 AM
    Since you H-1B visa becomes effective in Oct 2006, that is when you become liable for Social Security and Medicare taxes. Your obligation begins and ends when you tell your employer when the H-1B visa becomes effective. After that, it rests with your employer to begin withholding these taxes.

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