Information on Tax Exemptions for OPT Students

Most of the students who are on F-visa or on Optional Practical Training (OPT) having a legitimate job should remember that they are exempted from U.S. Social Security (FICA) and Medicare taxes. These students should inform their employer about this to avoid inappropriate deduction from their pay.

OPT students, who recently applied for H1B FY 2010 should also make sure that their employer must start deducting U.S Social Security and Medicare taxes from 1st October 2009 (start date for their H1B visa). Failure to do so could lead to heavy tax penalties during annual tax return.

Below is some information on certain classes of alien employees are exempt from U.S. social security and Medicare taxes

Resident aliens, in general, have the same liability for Social Security/Medicare Taxes that U.S. Citizens have. (Please see Resident Aliens definition for Tax purposes)

Non-resident aliens, in general, are also liable for Social Security/Medicare Taxes on wages paid to them for services performed by them in the United States, with certain exceptions based on their non-immigrant status. The following classes of non-immigrants and non-resident aliens are exempt from U.S. Social Security and Medicare taxes:

• A-visas: Employees of foreign governments are exempt on salaries paid to them in their official capacities as foreign government employees.
• The exemption does not automatically apply to servants of employees of such foreign governments.
• The exemption does not apply to spouses and children of A non-immigrants who are employed in the United States by anyone other than a foreign government.

• D-visas: Crew members of a ship or aircraft may be exempt if the vessel is a foreign vessel and the employer is a foreign employer, or if the services are performed outside of the United States
• Crew members of an American vessel or aircraft who perform services within the United States ARE subject to Social Security and Medicare taxes.
• Crew members of an American vessel or aircraft who perform services outside the United States ARE subject to Social Security and Medicare taxes if:
• the employee signed on the vessel or aircraft in the United States; or
• the employee signed on the vessel or vessel outside the United States but the vessel or aircraft touches a U.S. port while he is employed thereon.

• F-visas, J-visas, M-visas, Q-visas: Non-resident Alien students, scholars, professors, teachers, trainees, researchers, physicians, au pairs, summer camp workers, and other aliens temporarily present in the United States in F-1,J-1,M-1, or Q-1/Q-2 non-immigrant status are exempt on wages paid to them for services performed within the United States as long as such services are allowed by USCIS for these non-immigrant statuses, and such services are performed to carry out the purposes for which such visas were issued to them.

• Exempt Employment includes:
• On-campus student employment up to 20 hours a week (40 hrs during summer vacations)
• Off-campus student employment allowed by USCIS.
• Practical Training student employment on or off campus.
• Employment as professor, teacher or researcher.
• Employment as a physician, au pair, or summer camp worker

• Limitations on exemption:
• The exemption does not apply to spouses and children in F-2, J-2, M-2, or Q-3 non-immigrant status.
• The exemption does not apply to employment not allowed by USCIS or to employment not closely connected to the purpose for which the visa was issued.
• The exemption does not apply to F-1, J-1, M-1, or Q-1/Q-2 non-immigrants who change to an immigration status which is not exempt or to a special protected status.
• The exemption does not apply to F-1, J-1, M-1, or Q-1/Q-2 non-immigrants who become resident aliens.

• G-visas: Employees of international organizations are exempt on wages paid to them for services performed within the United States by employees of such organizations.
• The exemption does not automatically apply to servants of employees of such international organizations.
• The exemption does not apply to spouses and children of G non-immigrants who are employed in the United States by anyone other than an international organization.

• H-visas: Certain non-immigrants in H-2 and H-2A status are exempt as follows:
• An H-2 non-immigrant who is a resident of the Philippines and who performs services in Guam;
• An H-2A non-immigrant admitted into United States temporarily to do agricultural labor.
  
  

INFORMATION FOR STUDENTS AND EXCHANGE VISITORS (F-l, M-l & J-l VISA CATEGORIES) PURSUING EMPLOYMENT IN THE UNITED STATES

The U.S. Department of Homeland Security and the Department of State, along with the Social Security Administration, have coordinated several actions in order to ensure that eligible students and exchange visitors can be given Social Security numbers. Some of the actions to facilitate Social Security number issuance involve the cooperation of the student or exchange visitor. If eligible to work in the United States, students/exchange visitors should:

1. Report to their school or to their exchange visitor program as soon as possible after arrival at a U .S. port of entry. This should be done prior to applying for Social Security numbers.

2. Designated School Officials (DSOs) will then follow-up on the arrival of their students by registering them in the Student and Exchange Visitor Information System (SEVIS).

Responsible Officers (ROs) will then follow-up on the arrival of their exchange visitors by validating them in SEVIS.

3. If there are no other conflicts with the requirements of the Social Security Administration and the status of the student or exchange visitor in SEVIS, current students/exchange visitors should receive Social Security numbers.

If the SSA cannot assign an SSN, it will mail a notice of explanation to the applicant. The notice instructs studentS to contact their DSO and request that their SEVIS information be reviewed to ensure that it is accurate. Exchange visitors will likewise contact their ROs and requesthat their SEVIS information be reviewed to ensure that it is accurate. Note that corrections made in SEVIS are accessible to the SSA within 48 hours. Once SEVIS is updated, students/exchange visitors may reapply for SSNs after 48 hours elapse.

If a student or exchange visitor is not assigned an SSN and the DSO or RO believes he/she is authorized for employment, DSOs/ROs should first verify that SEVIS reflects the current status of the student or exchange visitor (e.g. active, inactive, etc.) IfDSOs/ROs are unable to determine the cause of the difficulty, they can contact the Student and Exchange Visitor Program (SEVP) at (703) 603-3400
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Welcome to US Non-Immigrants Blog

This is a new blog that will cover latest on the following Non-immigrant visas.

• B-1/B-2 - Temporary visitor for business or pleasure
• C - Transit through the United States
• D - Crew (airline/ship)
• E-1/E-2 - Treaty Trader/Investor Visa
• E-3 - Specialty Work Visa
• F - Student (academic or language program)
• H - Individuals in specialty occupations (e.g. nurses)
• I - Journalists
• J - Exchange visitors
• K - Fiancé(e) of U.S. citizen - while technically a non-immigrant visa, the processing of this category actually falls under immigrant visas
• L - Intra-company transfer
• M - Student in vocational or recognized non-academic program
• O - Individuals with extraordinary abilities in sciences, arts, education, business, athletics
• P - Internationally recognized athlete or member of internationally recognized entertainment group
• Q - Participants in an international cultural program
• R - Religious workers
• Official and Diplomatic visas
• I-485/I-140/AOS/EAD – Though this is an immigrant application, but is of an interest to all non-immigrants

I will post latest news related to above visas here and would share my perspective on the news.