[joraul]

I came to the US in November 2002 on a F1 Visa. Graduated in December 2005, and started my OPT (still under F1 visa) in January 2006. I did my Optional practical training at a Mental Health Counseling Agency where, as part of my deductions they included health insurance, federal and state taxes, and medicare. I remember filling a W4 form and a L-4 form when I started back in January 2006. As of January 2007 I changed to a H1 visa status. Now is time or me to fill out my paper work for 2007 and to claim taxes for 2006. Could you give me some information about how to go about that. Do I have to use different forms now that I am on H1? Were I supposed to be deducted federal and state taxes like any other us residents (since I have been on F1 status all the time).
Thank you

[AtlantaTaxExpert]

You use the same W-4 and L-4 forms for 2007. For 2007, you will file as a resident alien and pay the same taxes that U.S. citizens pay.

For 2006, you need to ask your employer to refund the withheld Social Security and Medicare taxes back to you, because, while on OPT, you are still considered a student under the F-1 visa and are exempt from Social Security and Medicare taxes for work done that is directly related to your field of study. By default, OPT is work directly related to your field of study.

Do this immediately, as there is still time for your employer to adjust his last Form 941 and refund this money to you. If they refuse, get the refusal in writing on the Counseling Agency's letterhead, as you will then have to file Form 843 along with a slew of support documents (the refusal letter will be the FIRST attachment) in order to request a refund of these taxes.

If you want my professional help to do this, contact me at [email protected].