Taxes for H1-B Visa Holders

[jollin]

Hi,
I was on F1 status until 8th Sept 2009 and got my H1B on 8th Sept. 2009. Now i wasnt paying SSN and medicare since F1 students were exempt from those taxes. And i completely forgot to let me employer know that he needs to start deducting those taxes since the start of my H1B.

My question is will i face any issues during the stamping process if they dont see SSN and Medicare being deducted from my pay checks for the time from Sept to December? My employer said he will start deducting those taxes from 2010 since its almost the end of the year. What do i do? What are my options? I am leaving the country next month for my H1B visa stamping and i am stumped since i just remembered this..

[Atlanta Tax Guru]

Payment of FICA (Social Security and Medicare) taxe is the sole responsibility of the employer!

That has been the IRS position since withholding started in World War II.

For this reason, it is NOT your problem and it will NOT affect your visa stamping.

[sunaina]

Hi,
I am in US from Dec 2006 to sept 2009 in F1 Status and from oct 2009 till date in H1B. I have a doubt as such to get the Residency alien status whether I should stay in US for 183 days in H1B visa or is it fine that I was in F1 status for 183 days. Can I file the returns with in April 15th or should I need to go for extension of filing date. Should I be filing as Non- Resident alien or Resident alien. I got married in 2009 and my wife joind me on july 2009 and I am filing jointly.

I have been through the same question in the forum but really got confused. As some of them have similar criteria but they are recomended to file on july,so can you please help me out.

I was in US in 2006-12days
2007-344days
2008-340days
2009-346days.

Regards.

[Atlanta Tax Guru]

I answered your question on the other posting; please refer to it.

PLEASE do not post the same question TWICE on different sections mof the forum. It wastes time.

[savemysoul]

Hello Guru,
lucky to find you.
I am an Italian Motion Graphics Designer, 28, single, who maybe is going to be a H1b holders in NYC.
I've been in America twice:
in 2008 (3 months as traveller waiver program)
in 2009 (3 months as traveller waiver program)
I just realized reading all this thread that the taxes are so high!
My salary is going to be around 60k but with all these taxes I think the salary it's not so high as I thought.

I understood that employer's has to pay Medicare and Social Security taxes (how much percentage of my salary?).
What does it mean Medicare? What does include? Dentist? Injury?

I'm elegible for Social Security benefits. Which benefits, what does it mean?

I have to pay also state and federal taxes. How much and why?

Thanks a lot.
Andrea

[Atlanta Tax Guru]

As a H-1B visa holder, you are a foreign national with a work visa. That makes you subject to every tax that an American citizen pays.

FICA (Social Security and Medicare) taxes fund the Social Security and Medicare system.

To qualify for Social Security, you must pay into Social Security for at least TEN years and make it to retirement age (currently 62).

To qualify for Medicare, you must pay into Medicare for at least TEN years and make it to retirement age (currently 65).

Given these facts, I doubt you will qualify, but you must still pay these taxes, however unfair that may be.

Social Security is a flat 6.2% of your earned income, up to $106,000 for 2009.

Medicare is a flat 1.45% of your earned income, with NO income cap.

The federal income taxes are progressive in nature, which means the more you make, the higher your tax rates. Rates start at 10% and top out at 38%.

Most state income taxes are also progressive in nature, but at lower percentages. You can access the link below to find the percentage for your state:

The Tax Foundation - State Individual Income Tax Rates, 2000-2009

[gytysun]

Dear Atlanta Tax Guru,
I came in USA in 2007 March with J1 scholar visa from China. Then in 2009 March, my college switch my visa to H-1B. I know for 2009, I am a resident allien. But I was still cvered by the US-China treaty benefit. So I received 1042-S and W-2(box1 is zero). I know I should file 1040 form. I don't know which line I can write the number of 1042-S
According to the Pub 519 (in most cases, you also will not need to report the income on your Form 1040
because the income will be
exempt from U.S. tax under the treaty. However, if the income has been
reported as taxable income on a
Form W-2, Form 1042-S, Form 1099, or other information return, you should
report it on the appropriate
line of Form 1040 (for example, line 7 in the case of wages or salaries).
Enter the amount for which treaty
benefits are claimed in parentheses on Form 1040, line 21. Next to the
amount write “Exempt income,” the
name of the treaty coun- try, and the treaty article that provides the ex-
emption. On Form 1040, subtract
this amount from your income to arrive at total income on Form 1040, line 22.)

the following which one is correct,
1)line7 is 0，line21 is -1042s，at same time write "exempt income,” the
name of the treaty coun- try, and the treaty article that provides the ex
emption
2))line7 is 0，line21 is 0，at same time write see attached 1042-S.

And i have one more question do I need file form 8833?
thanks

[Atlanta Tax Guru]

Redundant post; already answered in another part of this forum.

[amiashu]

Hi Sir,

First Question,

I am currently on H1B visa. my history is as follows
Came to USA on July 2005 - F1 visa
Converted to OPT on May 2007 (started working on 8th July 2007)
Converted to H1B Oct 1 2008.

I have filed my tax return twice 2007 & 2008
2007 - 1040EZ (income about $30k)
2008 - 1040 (income about $58k)

i filed both of them online at Turbotax.com without any professional help.

was any of my tax returns wrong, was i suppose to file them differently then i did? if i was wrong, how do i recover from my mistake(s)

Second Question,

i got married March 2009. my wife is canadian Permanent Resident and has U.S. visitor visa (she does not have H4). she lives in canada but does visit me for few days every month or two. she makes about $12-15k per year in canada

can i file my 2009 tax as married, if yes then jointly or seperatly

Thanks you very much in anticipation,
Amit Patel

[Visa Taxes Expert]

You need to file Form 1040NR and Form 8843 all the way from 2005.

You have filed incorrectly, and IRS can audit your tax returns.

We can fix the errors, by filing Form 1040X and amending your tax returns.

Contact us at taxexpert@visataxes.com for a quote on our tax preparation services.

Hope it helps!