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    Blitz1729's Avatar
    Blitz1729 Posts: 3, Reputation: 1
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    #1

    Feb 6, 2013, 06:20 PM
    No federal tax withheld on OPT, but asked to pay back huge amount on H1
    Hello,
    I got employed in December 2011 as a faculty assistant professor while on OPT. My OPT continued till August 2012 after which my university applied for my H1 visa which I got easily. While I was on OPT, no federal tax was withheld. But now when I am trying to file my taxes for 2012 in February 2013, Turbo Tax says I have to pay around $13000 as federal tax. Is this fair? Or can I do something to save myself from paying this huge amount? If no federal tax was being withheld during my OPT status, why are they asking me to pay back now?

    Your help will be very much appreciated.

    -Blitz1729
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
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    #2

    Feb 6, 2013, 06:40 PM
    How long have you been on F1?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Feb 6, 2013, 08:43 PM
    If you have been on F-1 for LESS than five years (arriving in the U.S. in 2008 or later), you should NOT be using TurboTax to complete your tax return.

    You are a non-resident alien who needs to file Form 1040NR or 1040NR-EZ plus Form 8843.

    If you believe that you will need professional help filing this year, this IS what I do. Please double-click on my name (Atlanta Tax Expert) above to access my profile. You will find my email address in the signature portion of the profile (scroll down to the BOTTOM of the page).
    Blitz1729's Avatar
    Blitz1729 Posts: 3, Reputation: 1
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    #4

    Feb 6, 2013, 10:45 PM
    Quote Originally Posted by taxesforaliens View Post
    how long have you been on F1?
    I have been on F-1 from August 2002 to August 2011. I was on OPT from August 2011 to August 2012 and now on H1 since August 2012.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #5

    Feb 6, 2013, 11:34 PM
    Since 2007 you are resident for tax purpose. For 2011 you will file resident tax return.
    You will pay Social Security taxes, federal income tax and state income tax.
    Why the university did not hold federal income tax and SS tax is not clear to me. How did they report the income? On what form?
    Blitz1729's Avatar
    Blitz1729 Posts: 3, Reputation: 1
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    #6

    Feb 7, 2013, 12:02 AM
    2011? Or 2012?
    In 2011, I was a student working as a research assistant and I got a job in December 2011 only. My employer (university) asked me to continue on OPT till August 2012 after which I started working on H1 visa. However, my W2 form for 2012 shows that though social security and medicare taxes have been withheld, no federal tax was withheld. From January 2013 onwards, federal tax started being deducted from my income. But when I try the TurboTax software, it says I must make up for it by paying $13500 as federal tax for 2012.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #7

    Feb 7, 2013, 06:11 AM
    You file as a resident for BOTH 2011 and 2012, and you ARE liable for FICA (Social Security & Medicare) taxes unless your status as a university student makes you exempt.

    Nothing to be done about the lack pf federal tax withholding; just pay the tax.
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