Confused about taxes when changing from F-1 to resident after marriage

[DDG]

I am reposting this from the F1 forum because I think people here might have more experience with this.

I know that normally you don't pay medicare and SS taxes if you are a student with an F-1 visa the first 5 years. But what happens if you had J-1's in previous years coming up to a total of 6 years on J or F status which are not consecutive? In my particular case, I've had:

* 2004 - J1
* 2005 - J1
* 2006 - no visa, was not in the US at all, no US income, did not file tax return for that year
* 2007 - J1
* 2008 - J1 from 2007, adjusted to F1
* 2009 - F1
* 2010 - F1, will adjust to conditional resident after marriage to a US citizen


So with that interruption between the different visas, when should I start counting the 5 years? Also, assuming I don't have to pay them while on F-1, am I supposed to start paying SS and medicare from the day I get married or from the day the I-130 gets approved?

If anyone has been in a similar situation, I would really appreciate any info on this.

[SISA]

I think you should start paying Medicare and SS as soon as you get approved for your conditional permanent residence status. From that moment on, your F1 status is over and you become a resident.
Anyways, you can't make much money on F1 so we are talking small numbers here, right? You are allowed only 20h per week, right?
But it is another question how this will work out when you file for your taxreturn because you will be considered a resident for the whole year - the year when you are granted the resident status (I suppose so). And you want to make some division between the income while on F1 and the income while a resident in the same year? Is that so? I don't know how or if you can do this. But as I said we must be talking small numbers here so even if you get charged for the SS and Medicare on the income on F1, it won't be much. I don't believe it deserves so much concern.
Besides, later on, you might wanna go back to all those years while on J1 and F1 and probably pay the SS and Medicare on that income too becuase by this way the income from those years will count towards retirement or any other Social Security benefits you might eventually apply for (esp. disability claims). So if you have paid some more SS or Medicare do not think you were cheated or something, it might actually benefit you later in the years. You are probably young now and hardly care but a day will come when you will.
Better consult your local Social Security Office once you become a resident.
When you get your conditional green card you can go and apply for a new Social Security card without the notorious comment of "Valid only with INS/DHS authorization".
I am not a lawyer, this is all from personal experience. If you want a precise advice please consult an attorney.
Good luck!

[DDG]

Thanks SISA! Even the International Student Advisor in my college doesn't have a clue about my case. But I think I will do exactly what you say and just pay the SS and medicare taxes.

I am still not sure if I am required to pay them before I get my green card, but as you stated, my income for that period would be sufficiently small that it wouldn't really matter. And I'd rather pay a few bucks more than risk being accused of cheating on my taxes

[aaydrian]

Tax

Hi DDG,


The issue with your case is that once you marry a USC and file for taxes the first year of marriage jointly, you are eligible to be counted as a resident for tax purposes, even though you are a foreigner. The first year you file 1040ez or 1040 (depending on your joint income), you (and your wife) have to send a joint letter to IRS saying that you want to be counted as a resident. You do not have to file medicare for all the previous years as you are not considered a resident and you have had to file 1040NR. Under the India specific treaty you were also exempt form tax provisions upto a certain limit. Once you declare yourself a resident for tax purposes you loose that privilege.

Disclaimer: I am not an attorney, use any advise at your own risk