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    horlah's Avatar
    horlah Posts: 6, Reputation: 1
    New Member
     
    #1

    Nov 4, 2010, 09:36 AM
    Social sceurity and medicare deductions for F1 students on OPT
    Dear Atlanta Tax Expert.

    I just realized I shouldn't be taxed for social security and Medicare, I graduated Dec. 2009 as an F1 student. I have been working since April 2010, and having payroll deductions weekly for these. I was wondering if I wait till its time to file for tax next year, and file the 1040NR, will my deductions be refunded? Or it has a special way of recovering the deductions. I really do not want to bother my employer with that now as am trying to get a H1B with them, but I will if that's my only option. Please enlighten me on this. I ve heard so many stories... some say since its deducted its gone!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Nov 4, 2010, 11:51 AM
    The forst course of action is to ask that these improperly-withheld taxes be refunded by your employer. That is both easier and quicker than any OTHER method requesting a refund, and IS the preferred method. Further, the IRS requires to attempt to get the money from the employer first and foremost.

    If you are unsuccessful, you would submit Forms 843 and 8316 along with a number of support forms, to include a letter from your employer stating WHY the employer cannot or will not refund the money.

    The money is NOT gone; you can and will get it back, though it may take a while.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Nov 6, 2010, 07:59 PM

    On F1/OPT you are exempt from residency for 5-years. You must file non-resident tax return Form 1040NR or 1040NR-EZ and Form 8843. Your income is not subject to FICA taxes but you must pay federal and state income taxes. On your income you will get deduction based on tax treaty between the U.S. and your country.
    So you should tell your employer to refund you SS and Medicare tax. They can still do this before filing final return for 2010.
    horlah's Avatar
    horlah Posts: 6, Reputation: 1
    New Member
     
    #4

    Nov 6, 2010, 08:47 PM

    Atlanta Tax Expert and Mukata,

    Thanks for your answers... gives me a good view of what to do.

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