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

    Oct 26, 2006, 12:56 PM
    Questions Regarding OPT - H1B FICA Taxes Witholding
    Dear friends:

    I have been on F-1 status from Nov. 2002, I graduated in August with a Master's degree. I started working on OPT on 9/25/06, for that first week paycheck (9/25 - 9/30), only federal and state taxes were deducted, but not the FICA taxes. Starting 10/01/06 (my H1B status starting date), my paychecks shown FICA taxes were deducted.

    My question is:

    • Am I required to pay FICA taxes even though I started my H1B on Oct 1st?
    • If I am not required to pay FICA, should I ask my employer to refund me the FICA deducted?
    • Is it true I have to file Form 1040NZ not 1040?


    Thanks in advance!

    Tqaf :confused:
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Oct 26, 2006, 07:47 PM
    Tqaf:

    Yes. You become liable for FICA taxes the day your H-1B is approved.

    If you are married, you can file Form 1040 after you have been on H-1B status for 183 days. You and your spouse has to opt for resident alien status for all of 2006.

    If you are single, you should file a dual-status return. Download IRS Pub 519 from www.irs.gov for details on how to file this return. It IS somewhat complicated.
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