Vivinavi : Los Angeles : (United States) Los Angeles

• 感謝
• 2021/05/25 (Tue) 08:06
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tax man

Thanks for the clear and detailed explanation.
I read what tax man posts even if it has nothing to do with me.
It is really helpful to get this kind of information in the exchange forum.

• tax20
• 2021/05/25 (Tue) 12:28
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I assume you need an ITIN to do a tax return, in which case you can attach a W-7 and they will issue you a number.

ITIN application is basically ＜ not possible ＞ alone. （ Exceptions include being a member of an LLC, etc. ） Attached to a tax return.


Simply put, 100% of ITINs are issued to anyone who needs one.　Even accountants can't do W-7's on your behalf unless they are registered AA's or CAA's.

• 担々麺
• 2021/05/26 (Wed) 13:44
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Dear tax man
I have a flight question.
I am sorry to bother you, but I would be grateful if you could enlighten me.
A friend of mine is working at a certain place on OPT. I understand from my limited knowledge that Medicare and SS tax are not deducted from her paycheck while she is on OPT, but when I asked her to show me her pay stubs, she was sure they were deducted. She can still get a refund since she has been there for a few months now, but they have been hiring OPTs there for 10 years now and have been deducting Medicare and SS all along. Most of the kids have already returned home and were working there without such knowledge.
Can I report such a case to the IRS and have it audited ？
I hope there is a penalty or something if possible because it is a very, very black company.
I would be happy to hear from you.

• tax man
• 2021/05/26 (Wed) 16:30
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Please refer to the following answers to your questions.

Do OPT's have to pay FICA ߋ(Social Security Tax and Medicare Taxes) ？

Students on CPT, OPT, STEM OPT are exempt from FICA Taxes (Social Security and Medicare Taxes).
In other words, you don't have to pay FICA taxes on your paycheck.
Some employers would deduct those taxes from your paycheck.
But, you can get a refund on FICA taxes from the IRS.
This guide will walk you through the instructions and additional details. https://www.happyschools.com/opt-exempt-fica-taxes/

BibiNavi circa 2004-2008
Questions about taxes include why the OPT payment to Social Security is
deducted from OPT payments ？. These days, the number of international students has decreased
significantly, so the question is not asked as often, but at the time, we frequently answered it.

Why is Social Security deducted from the OPT salary ？

One has to do with the forms you submit for employment. If you are a US resident
when you are hired, you will file a W-4 or W-9 form. However, the W-9 is a form for
U.S. residents, while an OPT on an F-1 visa is not a U.S. resident but only a
"foreign national" by definition of an F visa, since he/she is a foreign national and only has permission to work in the U.S. for a certain period
. Therefore, they are not obligated to pay Social
Security or Medicare, which are U.S. Social Security expenses.

Therefore, you can submit the form W-8BEN （ https://www.irs.gov/pub/irs-pdf/fw8ben.pdf ）
instead of W － 9 to the company
to get FICA deducted from your pay check. FICA can be avoided by submitting the form W-8BEN
instead of W-9. However, this is understood by all companies that publicly "solicit OPTs"
and the company should specify the form, but in practice, I believe there are quite a few cases where this is not
consciously done to avoid the accounting burden.


Is that FICA not Refundable ？

Form843 （ at https://www.irs.gov/pub/irs-pdf/f843.pdf ）
It is possible to get a Refund from the IRS.
Of course, you do not simply fill out the form and send it to the IRS, but you mail it to the IRS with a
copy of your W-2 or other form and proof of OPT, and explain that you have calculated the Refund amount and do not have to pay FICA.

What about your question about the penalty against the company ？

Proving whether it was a payroll processing error or the result of a conscious ≪malicious∩ (bad faith) result is
usually difficult, but

that you knowingly collected FICA on an OPT, you can state in a letter of explanation that you attach when you
attach your FICA calculation or proof of OPT, that "despite
continuously employing OPT for many years, you have failed to process FICA at all."

However, it would be
more effective for you not to take any emotional action at this stage, such as holding a grudge. The purpose of the Form 843 is only to refund the FICA paid.

• 担々麺
• 2021/05/26 (Wed) 17:14
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taxman
Thank you very much.