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    patlola88's Avatar
    patlola88 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 19, 2011, 10:48 AM
    Federal and State while on OPT?
    Hello,

    I am on OPT working in Maryland since May-2011. My employer is paying me $64 per hour i.e I am getting $10240 for 160 hours. I am paying federal tax of $2286.28 i.e 22.3% of $10240 and State Tax $800.83 i.e 7.8% of $10240. I am paying around 30% in taxes only. My question is, how can I reduce my taxes. If it is not possible, Am I eligible to get the Federal tax refund after filing tax returns as I am on OPT?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 19, 2011, 12:17 PM
    It is lilkely that you will get a partial refund of your federal income taxes, and probably state as well. How MUCH the refund will be depends on a variety of factors.

    You ARE exempt from FICA (Social Sceurity and Medicare) taxes due to your OPT status. If these taxes are being withheld from your salary, download IRS Pub 519 from www.irs.gov and print off pages 55 - 59. This section of the pub explains in detail why you are exempt from the FICA taxes. Your employer should stop withholding and refund the money withheld to date.
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