Solved

F1 to H1b transition and FICA taxes

Forum|Forum|6 years ago
April 5, 2020
3 replies
0 views

Hello,

I am filling the taxes as Non resident. I shifted from F1 to H1b. It looks like my company has withhold FICA taxes from Oct. 1 2019. If I am filing as Non resident Alien, then will I receive the FICA taxes back.

@pk12_2 Do you know about this

Thanks

Not A Product Question

Best answer by pk12_2

@yashK , disagreeing with @linaj20201 --- based on our earlier discussion , you were a Non-Resident Alien for 2019 but under H-1B ( as an employee and not a trainee ) you are not immune to FICA taxes . So yes your employer will withhold Federal, State and FICA taxes from the date of adjustment. Also note ( and perhaps I should have pointed out earlier ) that a NRA you file form 1040-NR ( not supported by TurboTax ).

You always have the option of filing a form 1040 under the first year choice -- 1. you have been present for 31 days continuously; 2. have been present at least 75% of the days in the test period of Oct.1 through 12/31/2019; 3. you have not been a resident / resident for tax purposes during the previous year; 4. you will be a resident for tax purposes by the time you file in April of 2020. This may be advantageous for you ( especially if you have had zero foreign income during 2019 ). All you need to do is add a note along with your return stating the above items in a letter and requesting that you wish to be treated as resident for tax purpose for 2019. This of course means you file by mail because that will get human intervention.

Namaste ji

L

linaj20201

As an H-1B holder, you might be a resident. When did you enter the US with your F-1 visa? And how long have you stayed within the US?

@yashK

Y

yashKAuthor

I came in august 2015. I was on f1 till sept. 30 2019. I do not pass the substantial Presence test for year 2019 as I was on h1b for 90 days and rest of the days I was on F1. Thats why my company hold FICA taxes only from Oct 1 2019. But since I am filing taxes as non resident Alien , I think i might get the FICA taxes back. Not sure about it though

L

linaj20201

I would like to clarify. Technically, you are considered a non-resident for five years from 2015-2019. You are exempt from counting days for the F-visa and you did not fulfill the SPT Substantial Presence Test for the H-visa. You are exempt from paying the FICA taxes while on the F-visa. However, IRS requires you to start paying FICA after you change to your H-visa even though you might still be a non-resident for tax purposes.

To see the information from the IRS, click here: https://www.irs.gov/government-entities/employers-must-withhold-fica-taxes-for-aliens-who-change-visa-status-to-h1b

You do have another option to file as a dual-status if you meet the rules. See post from @pk12_2 below.

[Edited 4/6/2020 | 10:19 AM]

@yashK

P

pk12_2Answer

Employee

@yashK , disagreeing with @linaj20201 --- based on our earlier discussion , you were a Non-Resident Alien for 2019 but under H-1B ( as an employee and not a trainee ) you are not immune to FICA taxes . So yes your employer will withhold Federal, State and FICA taxes from the date of adjustment. Also note ( and perhaps I should have pointed out earlier ) that a NRA you file form 1040-NR ( not supported by TurboTax ).

You always have the option of filing a form 1040 under the first year choice -- 1. you have been present for 31 days continuously; 2. have been present at least 75% of the days in the test period of Oct.1 through 12/31/2019; 3. you have not been a resident / resident for tax purposes during the previous year; 4. you will be a resident for tax purposes by the time you file in April of 2020. This may be advantageous for you ( especially if you have had zero foreign income during 2019 ). All you need to do is add a note along with your return stating the above items in a letter and requesting that you wish to be treated as resident for tax purpose for 2019. This of course means you file by mail because that will get human intervention.

Namaste ji

Y

yashKAuthor

@pk12_2 and @linaj20201 Got it. Thanks for pointing this out. But i am thinking of keeping it simple and filing as 1040NR.

R

raghavgupta93

I have a related question - I transferred from F1 to H1B status in late January 2019, so I definitely meet the SPT and, from what I can tell, will be considered a resident for 2019. What I'd like to know is whether I have to pay FICA on any pay I received before transferring to H1B status.

Thanks for your help!

P

pk12_2

Employee

@raghavgupta93 , if the earnings prior to the adjustment of status was for OPT type of work ( generally termed as required training ), then you are not require to contribute FICA taxes ( Social Security & Medicare ). Does that answer your query? or you need more on this ( then please tell the type of work -- was this school related employment or was it a case of CAPGAP or similar ).

Namaste ji

pk