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    kaushik's Avatar
    kaushik Posts: 20, Reputation: 1
    New Member
     
    #1

    Jan 30, 2008, 01:33 AM
    Total annual expenses
    Hello,

    Could someone please tell me if I could include my total annual expenses as some kind of exemption deduction for the 2007 taxes? I'll be filing F1040 NR since I'm a non-resident alien on H1B.

    Also, my second question is about the OPT to H1B transition... my visa status changed from F1 OPT to H1B from Oct 1, 2007 onwards... do I have to pay social security and medicare taxes from Oct or am I exempted from these taxes until Jan 2008?

    Thank you and look forward to your earliest assistance.

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

    Jan 30, 2008, 03:15 PM
    Kaushik:

    Negative. That is one of the tax myths for H-1B workers, that their daily living expenses (meals, rent, transportation) are deductble because the H-1B job is temporary.

    If the job lasts longer than one year, the IRS does NOT consider it to be temporary.

    Further, students on F-1 and workers on H-1B visas are NOT considered to have established a tax home (home country does NOT count), so claiming an OPT or H-1B that IS less than one year is a risky proposition as well.

    As for the Social Security and Medicare taxes, you became to pay these taxs on 1 October 2007. If your employer has NOT withheld them, you have the legal bligation to tell him so he can fix the problem. DO s in writing; email is good for this.

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