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Hi,

I just received a note with my last paycheck that said that holders of H-1 VISA's (temporary residents), do not have to pay OSADI taxes (medicare and FICA I believe).

Although I am now a green card holder (since July 1997), I was on an H-1 since September 1994 and did pay these taxes throughout.

Can anyone clarify this for me?

Thanks.
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<<I just received a note with my last paycheck that said that holders of H-1 VISA's (temporary
residents), do not have to pay OSADI taxes (medicare and FICA I believe).

Although I am now a green card holder (since July 1997), I was on an H-1 since September 1994
and did pay these taxes throughout.

Can anyone clarify this for me?>>

I'm not sure that I can, but I'll tell you what little I know.

Services performed by a nonresident alien individual who is temporarily present in the U.S. as a nonimmigrant under Secs. 101(a)(15)(F), (J), (M) or (Q) of the Immigration and Nationality Act (8 USC 1101), as amended, do not constitute employment if the services are performed to carry out a purpose for which the individual was admitted. This being the case, they are not subject to FICA tax withholding.

Nonimmigrant nonresident aliens for purposes of this rule are various categories of students and academicians who have residences abroad that they have no intention of abandoning.

Before Oct. 1, '94, 30.1 there was no reference to Sec. 101(a)(15)(Q) of the Immigration and Nationality Act.

WHY your employer was withholding FICA taxes when you may not have been liable for them is something that you will need to take up with your employer.

TMF Taxes
Roy
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<<I just received a note with my last paycheck that said that holders of H-1 VISA's (temporary
residents), do not have to pay OSADI taxes (medicare and FICA I believe).

Although I am now a green card holder (since July 1997), I was on an H-1 since September 1994
and did pay these taxes throughout.

Can anyone clarify this for me?>>

I'm not sure that I can, but I'll tell you what little I know.

Services performed by a nonresident alien individual who is temporarily present in the U.S. as a nonimmigrant under Secs. 101(a)(15)(F), (J), (M) or (Q) of the Immigration and Nationality Act (8 USC 1101), as amended, do not constitute employment if the services are performed to carry out a purpose for which the individual was admitted. This being the case, they are not subject to FICA tax withholding.

Nonimmigrant nonresident aliens for purposes of this rule are various categories of students and academicians who have residences abroad that they have no intention of abandoning.

Before Oct. 1, '94, 30.1 there was no reference to Sec. 101(a)(15)(Q) of the Immigration and Nationality Act.

WHY your employer was withholding FICA taxes when you may not have been liable for them is something that you will need to take up with your employer.

TMF Taxes
Roy
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Thanks for the update. I did call my employer yesterday, and they said that it was a misprint. It should have read J-1 Visa. A J-1 visa is essentially a student visa that expires after 18 months and is non-renewable.

So, my H-1, which is a 3 year visa, renewable for a further 4 years - did not count. Oh, well, it was worth a try.

One further question - is there a booklet that explains how FICA works, and how it translates into social security and Medicare when you retire - not coming from the US originally, I don't have any elderly relatives to refer to.
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<<One further question - is there a booklet that explains how FICA works, and how it translates into
social security and Medicare when you retire - not coming from the US originally, I don't have any
elderly relatives to refer to.>>

There are two IRS Pubs that you might want to check out. Pub 554 and 915 should provide you with the information that you are looking for (at least from a tax standpoint). You can read/download these Pubs at the IRS web site (http://www.irs.ustreas.gov).

You might also want to drift over to the social security web site (sorrly...can't seem to find the URL right now...do a search) for more information on the social security system.

TMF Taxes
Roy
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<You might also want to drift over to the social security web site (sorrly...can't seem to find the URL right now...do a search) for more information on the social security system.>

http://www.ssa.gov
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