Hi All,

I have been in the US for five years now as a F-1 student. I am currently working for a company under OPT. I read somewhere that F-1 students were exempted from paying  for Social Security and Medicare. I double checked with my payroll office and they said that I was liable for the taxes since I had crossed the 5 year threshold and am considered a resident for tax purposes. I tried researching this over the internet and also asked few people around but have been getting different opinions. Is there anyone who could advise me on this?

 

Thanks

Hi Junkiri:

I'm sorry but I also know the same as your HR told you. Just sharing, but please continue exploring about it.

_

I don't know the legality over this, but I am working in OPT now and I too was asked if I had been in the US for more than 5 years. Since, I wasn't I was exempted from these two taxes. 

Yea, you got to be here for less than 5 years to be exempted from those taxes.

Here is the reference from the IRS site.

IRS REFERENCE

A nonresident alien temporarily in the United States as a nonimmigrant on an "F-1," "J-1," "M-1," "Q-1," or "Q-2" visa is not subject to social security and Medicare taxes on pay for services performed to carry out the purpose for which the alien was admitted to the United States. Social security and Medicare taxes should not be withheld or paid on this amount. This exemption from social security and Medicare taxes also applies to employment performed under Curricular Practical Training and Optional Practical Training, on or off campus, by foreign students in "F-1," "J-1," "M-1" or "Q" nonimmigrant status as long as the employment is authorized by the U.S. Citizenship and Immigration Service. However, if an alien is considered a resident alien, that pay is subject to social security and Medicare taxes even though the alien is still in one of the nonimmigrant statuses mentioned above.

If you are in US for 5 years, you are consider to be resident alien for tax purpose.