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Social Security Tax

Good evening,

I have a question about Social Security Tax. I am a citizen of India. I came into the USA in 1998 on F1 visa. I believe on this visa you don't pay social security tax for 5 years. After 2003, when I was in graduate school, I started paying social security tax on my earnings. In 2006, I switched from F1 -> OPT and now am on H1B visa. I notice that on my university paystubs for 2007 that no social security/ medicare tax is deducted for the entire year. I only see 'federal tax' and 'state tax'. I am not sure why this is the case? Are people on H1B exempt from paying social security tax? Or is there a US-India treaty for this?

The reason I ask is today, I received the Social Security Statement. I was comparing this against last year. On 2007, it stated that I had at- least 20 credits at that time and qualified for disability. On 2008 statement, it is showing that I have at-least 12 credits and do not qualify for disability. I don't understand why this has changed. I'm not sure if this is an error or not. The earnings are correct on both statements. For 2007 it says, 'not yet recorded' but I didn't pay any social security tax on my wages and I don't know why.

Can someone explain this to me? Is this a mistake and should I be contacting the SS office about this?

Thanks for any information. Kind regards.

Reply to
pallav
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Neither your visa type nor your citizenship has anything to do with social security and medicare tax not being withheld from your university-paid wages. As a university student, your wages are exempt from FICA tax by Internal Revenue Code section 3121(b)(10). For details, see IRS Revenue Procedure 2005-11.

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Condor

Reply to
Condor

It's not that simple. In fact, aliens with F-1, J-1, M-1, or Q-1 visas are normally exempt from FICA and FUTA, even if they work off-campus for a private employer, as long as they are within the purpose for which they were admitted to the U.S.

It is also true, as you indicate, that persons subject to U.S. tax law as residents might be exempt from FICA withholding if they are students performing work for a college or university, but that is not the only factor. This law may not apply to the OP.

See Pubs 15, 515, and 519 for more information.

I can't answer the OP's question, nor do I know if there are any totalization agreements in effect that would allow him to be subject to the social security laws of only one country.

-Mark Bole

Reply to
Mark Bole

Someone in your graduate school fellowships office should be able to explain this to you. Or you can call the SS and ask, and get a clear answer.

The short answer is that while you are a student receiving a stipend or fellowship no FICA is paid and you gain no credits. This is one of the costs to you of higher education, on top of lost earnings and lost seniority. You also won't be eligible for unemployment income if your stipend runs out before you finish your degree.

Una

Reply to
Una

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