[Sherrysra]

Hello

Thanks Judy for picking up a point.

Moreover, on top of all this my tax person asked me to send a check of $755 to US treasury.

Really worried about my hard earned money.

Thanks

[AtlantaTaxExpert]

Given the information provided, paying $755 sounds about right.

[Sherrysra]

Given the information provided, paying $755 sounds about right.

Thank you "AtlantaTaxExpert" for your input and answering my questions.

[AtlantaTaxExpert]

Glad to help.

[singhal_ishaan]

Hey AtlantaTaxExpert,

My name is Ishaan. I am from India. I just started my CPT in the month of July and I got my first week salary yesterday. I'm new to the tax system here so I have to clarify some points on what to expect in returns and what am I exempted from.
My hourly wage is $27
I worked for 31.5 hrs in week 1 and was accordingly eligible to be paid $850.50 for the week. My tax payment was 196.30 (Fed W/H - $90; MA Tax - $41.24; MED - $12.33; SOC - $52.73). I'm a single person.
I would like to know what refunds will I get? Also currently it looks as if I'm charged 23% in taxes. Is that the right figure?
Thanks in advance for the help.
Best,
Ishaan

[AtlantaTaxExpert]

The MED is Medicare, and SOC is Social security, and, as an international student on F-1 status, you should NOT be paying Medicare and Social Security (also know as FICA) taxes.

This is explained in page 42-43 of the IRS Pub 519 for 2012, which can be downloaded from Internal Revenue Service.

[David_Mai]

@AtlantaTaxExpert: I am in same situation as ishaan, I am a F-1 graduate student from Vietnam, I am single, no dependence, I am in US < 5 years and doing CPT now, after received the first paycheck (with all of those taxes included as ishaan) I read over the internet and knowing I am free of Medicare and Social Security (also know as FICA) taxes for the first 5 years. I told my employer about it but they seem like doesn't understand what I said and tell me I have to pay those taxes and maybe can get refund on next tax-time.
The second the third paycheck were direct deposit on my bank acc so I don't know how much exactly for each kind of tax, I calculate the total percentage of tax in my most recent paycheck (third one) and it is about 23%, is it accurate % tax I have to pay? Should I give my employer anything to proof that I am free of Medicare + SNN taxes or I can get them returned (if so what form should I file)?

Thank you for your expert advices.

[AtlantaTaxExpert]

Download IRS Pub 519 from Internal Revenue Service, and print off pages 42 and 43. Those extracts explains in detail that international students who are non-resident aliens are NOT subject to FICA (Social Security and Medicare) taxes.

Once that is clear to them, they should refund the FICA taxes withheld to date, and stop withholding from future checks.

[David_Mai]

Download IRS Pub 519 from Internal Revenue Service, and print off pages 42 and 43. Those extracts explains in detail that international students who are non-resident aliens are NOT subject to FICA (Social Security and Medicare) taxes.

Once that is clear to them, they should refund the FICA taxes withheld to date, and stop withholding from future checks.

Thank you so much!
One more question, I started doing my internship (CPT) 2 months ago, I have been in US for 4 years as F-1 student, never worked before this internship so I have no income, I've never filed any tax forms whatsoever, am I still OK, do I own IRS anything?

[AtlantaTaxExpert]

Yes, you are okay. You will probably have to file a non-resident tax return (Form 1040NR) for 2013 next January.

Also, even if you do NOT file a tax return, you should have been filing Form 8843. If you have not, get the form for each year from Internal Revenue Service and submit the forms late, which is better than never.

[David_Mai]

Yes, you are okay. You will probably have to file a non-resident tax return (Form 1040NR) for 2013 next January.

Also, even if you do NOT file a tax return, you should have been filing Form 8843. If you have not, get the form for each year from Internal Revenue Service and submit the forms late, which is better than never.

AtlantaTaxExpert!
Thank you very much for your help!
Could you help me to clear one thing: what are these forms I need to fill when I doing the CPT - internship and give to my employer? The only form I remembered that I filled in the beginning day was W-4 form. Am I missing any form? (from last post if you forgot: I am a F-1 graduate student from Vietnam, I am single, no dependence, I am in US < 5 years and have been doing CPT for 3 months)

[AtlantaTaxExpert]

No, you are fine, because if you completed a Forn W-4, you will get a Form W-2 in from the employer.

Check your paystub and make sure you are NOT paying FICA (Social Security and Medicare) taxes, because as an international student on a F-1 visa, you are EXEMPT from those taxes.

[David_Mai]

No, you are fine, because if you completed a Forn W-4, you will get a Form W-2 in from the employer.

Check your paystub and make sure you are NOT paying FICA (Social Security and Medicare) taxes, because as an international student on a F-1 visa, you are EXEMPT from those taxes.

Thank you very much for your help!
So I told my employer about the FICA taxes and I just got the check yesterday WITHOUT any taxes withheld. I told them that I still have to pay the Federal + State +... (other than FICA taxes) is there any problem?
Earlier today they gave me the W-9 form and told me to fill-out and give to them. What is form W-9 and why do they need it?

[AtlantaTaxExpert]

They may have just converted you to independent contractor status, which is okay tax-wise. You should complete Form W-8ben instead of Form W-9.

Put about 20% aside from each paycheck so you have the money to pay the tax when you file next year.

[David_Mai]

They may have just converted you to independent contractor status, which is okay tax-wise. You should complete Form W-8ben instead of Form W-9.

Put about 20% aside from each paycheck so you have the money to pay the tax when you file next year.

Thanks for your input!
I will not fill the W-9 (I think I am not allowed to be an independent contractor) but do I really need to fill the W-8BEN? I filled the W-4 form, is that enough for my employer?
My employer seems like doesn't understand the point that "I am exempt from FICA taxes", they confused and I am confused too. I really don't want to give them any difficulties at all, as it is also not good for me. What is the best option for me now about this tax issue. (I got totally 4 paychecks from them, the first 3 ones FICA was withheld along with other taxes, the latest one I got several days ago (fourth one) - NO ANY TAXES was withheld, but I still have not cash it yet as I aware of something wrong) should I return them that paycheck and tell them just withhold all of taxes as I did before for this pay-time and all future pay-times, and (can) I got them (FICA taxes) returned on next tax season?
Also do you have email address so we can communicate quicker?

Thanks a lot!

[AtlantaTaxExpert]

Download IRS Pub 519 from Internal Revenue Service. On pages 42-44, it explains in detail that students like yourself are exempt from FICA taxes.

I can email you the PDF of IRS Pub 519. My email address is in my profile.

[sampathketh]

Hi,

I am currently an on F-1 and worked under OPT this whole year. My salary this year was $60,000 and my current Fed with holding is $5300 and state is $1700. How much refund can I expect for this year.

Thank you.

[timelinequest]

Right now I'm on OPT.My total salary and bonus is $72,000 and I paid 11,000 federal tax and 3200 West Virginia state tax. Can you please let me know how much refund I can expect.

[AtlantaTaxExpert]

SamPathKeth:

Assuming you are an Indian citizen and you are SINGLE, you have NOT withheld enough money to pay all of your federal income tax liability. You will OWE the IRS $3,181, which includes a $46 penalty for under-withholding.

You need to identify the state before I can do a state tax refund estimate.

TimeLineRequest:

Also assuming you are an Indian citizen and are SINGLE, you also have not withheld enough to pay your federal tax liability. However, you only owe $435 to the IRS, so there is NO under-withholding penalty.

For West Virginia, you OWE $227.

In both cases, this is virtually the IDEAL result, because ANY refund is a, INTEREST-FREE LOAN to the government, yet what you owe is low enough for you to pay with reasonable ease and with NO penalty by 15 April 2014.

[ingecuador]

Hi,

My salary is $42,640 and I started working in February 18, 2013. I work in Louisiana. I am NOT Indian but from Ecuador. Single, no dependents. Federeal Tax withheld was $3349.88 and state was $953.07.

Can you please help me estimate return/owed tax?

Thanks in advance!