[clance]

Does anyone have information on what may legally be deducted from a foreign worker's paycheck if they are here on under the OPT plan

[Wildsporty]

If you are in the Occupational Practical Training Program (OPT) you should not have Fica and medicare taxes deducted from your earnings. You will still have Federal and state taxes deducted according to the tax treaty for your country.

International students in Optional Practical Training, also known as OPT, represent a special category of nonresident aliens for tax purposes for several reasons:

First, unlike most universities and colleges in United States, employers of international students in Optional Practical Training - OPT deduct taxes from the students paychecks without taking in consideration any tax treaty benefits they might be entitled to. Most international students who qualify for tax treaty benefits are eligible for big tax refunds.

Employers deduct Social Security and Medicare taxes from the international students paychecks. International students, nonresident aliens for tax purposes, are not subject to Social Security and Medicare taxes also known as FICA taxes.

If you are an international student on Optional Practical Training - OPT, nonresident alien for tax purposes, and your employer has deducted Social Security and Medicare taxes in error, you must first ask your employer for a refund. If you are unable to obtain a refund from your employer, you must file Form 843 and Form 8316 to obtain a refund from the IRS for the Social Security and Medicare taxes withheld in error by your employer.

Most international students who take advantage of the Optional Practical Training – OPT in U.S. are right at the border of becoming resident aliens for tax purposes. Keep in mind that international students present in United States for less than 5 calendar years are considered nonresident aliens for tax purposes. If international students have passed 5 calendar years of presence in United States but intend to return to their home country, they should consider filing Form 8840 – Closer Connection Test to maintain their nonresident alien status.

Unlike international students enrolled in full time programs who are only allowed to work a limited amount of hours per week, students on Optional Practical Training – OPT can work full time for their employers. They receive larger paychecks and in almost every case they receive larger tax refunds.