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

    Sep 8, 2011, 11:17 AM
    Dual Status Alien Tax Return?
    Hi,
    I am currently on OPT but will get my H1-B in a few weeks so I will be a dual status alien. Currently my FICA taxes are not withheld, however I wanted to know that if I file as Dual status alien, will I

    1) Pay FICA only for the non resident portion of my stay?
    2) Pay FICA for the entire year?

    The IRS website was not very clear about mentioning this, If anyone has faced this or has found information around it please let me know

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

    Sep 12, 2011, 08:04 AM
    You become liable for FICA (Social Security and Medicare) taxes the day your H-1B visa becomes effective, probably on 1 October 2011. Whether you file as a non-resident alien, as a dual-status alien, or as a resident alien has NO EFFECT on this fact. See link below:

    http://www.irs.gov/businesses/small/international/article/0, id=129427,00.html

    If you are married, you have the option of filing jointly with your spouse and you BOTH choose to be treated as resident aliens. It will require that you wait until 1 June 2012 to file, but (generally) it is worth the wait.

    If you are single, you CAN file dual-status (again, you will be required to wait until 1 June 2012 to file), but normally there is NO advantage to file dual-status. It is easier and quicker to file as a non-resident alien (allowed because you will NOT have met the 183-day Substantial Presence Test by 31 December 2011) and there is generally NO tax advantage to filing dual-status over filing as a non-resident alien.
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