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    salmanhyder's Avatar
    salmanhyder Posts: 5, Reputation: 2
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    #1

    Feb 2, 2009, 01:56 PM
    FICA taxes
    Hello Sir,

    I have a roommate who started earning in USA last year for the first time. He is paying ssn and medicare taxes on all his paycheck. I think his visa status is J-1. He is from Pakistan. Please tell me is he suppose to pay ssn and medicare taxes or not? I thought if you are not a resident than you don't pay ssn and medicare taxes for first 5 years that you work in USA.



    Another questions is related to me. I am on H1-B visa and I have been in USA since January 2002, I attended school on F1 visa. I gratuated in 2006 and obtained my OPT which expired in September 2007. Although I was on OPT from January through September 2007, I still paid SSN and medicare taxes. Please tell me if it sounds correct or I should get the refund back for paying ssn and medicare on OPT from Jan through Sept 2007. My 5 year period ended in December 2006 by the way.

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

    Feb 3, 2009, 01:03 PM
    For most J-1 visa holders, they are exempt from FICA (Social Security and Medicare) taxes for the first two calendar years they are in the U.S. under the J-1 visa. FICA taxes become due on 1 January of their third year in country.

    As for your case:

    Sorry. Once your 5-year period expired on 31 December 2006, you became liable for FICA taxes, so the withholding during your OPT period was correct.
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