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    binarydigit1010's Avatar
    binarydigit1010 Posts: 1, Reputation: 1
    New Member
     
    #1

    Feb 20, 2007, 08:36 PM
    Relocation bonus while on F-1
    Hello,

    I recently graduated on December 16 2006. I have been on F-1 visa the last 3.5 years so I am considered a non-resident alien for tax purposes.

    I received a relocation bonus payment on December 27th 2006. My OPT was scheduled to start from 16th January 2007.

    Out of this bonus payment, a large chunk of social security and medicare tax was withheld. On speaking to my employer about this, I was told that since I wasn't on OPT at the time, they were forced to withhold SS and medicare taxes. Is this correct? Should I try to file for a refund of these with the IRS?

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

    Feb 21, 2007, 10:44 AM
    In my opinion, since you were still under F-1 visa at the time of the bonus, you should NOT have paid Social Security and Medicare taxes.

    Ask the employer to refund the money. When they refused, get the refusal in writing, preferably on company letter.

    Then start the process of requesting a refund of these withheld taxes using Form 843.

    If you need my professional tax help, contact me at [email protected].

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