J1 vs H1b in the aspect of paying taxes

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J1 vs H1b in the aspect of paying taxes

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9 Posts

O-pos
Forum Junior

Topics: 18
Posts: 42

02/01/08 - 04:40 PM

Hello,

I've heard that J1 visa holders are free of taxes for 2 years, while H1-B holders should start to pay taxes as soon as they get the h1b visa and start medical residency. Is it true? Does it matter which country you are from?

bbb
IM Program Coordinator
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Topics: 32
Posts: 4,655

02/02/08 - 09:43 AM

Incorrect. J1 visa holders don't have to pay social security taxes because it's a non-immigrant visa. They still pay taxes.....

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bbb - trying to combine common sense and humour into realistic answers, but not going to guess on anyone's chances of getting into a position....

plastic_surgery
Forum Junior

Topics: 2
Posts: 135

02/05/08 - 10:11 PM

J-1 holders from certain countries are exempt from social security tax for a period of 2 yrs (if their home country has a tax treaty in place with US).

Edited by plastic_surgery on 02/05/08 - 10:22 PM

O-pos
Forum Junior

Topics: 18
Posts: 42

02/06/08 - 09:40 AM

H1 is nonimmigrant visa as well. Why do they have to pay social security taxes?

What is nonresident alien and resident alien?

bacteriophage
Forum Newbie

Topics: 3
Posts: 24

02/09/08 - 12:51 AM

J1 visa holders from certain countries are exempt from ANY tax for first 2 year of their being in US. This includes social security, medicare and INCOME taxes. You DO NOT pay ANY tax for first two years.... I have done that last year and doing it for this year, so I know it for sure... I do not know about H1 visa holders thou...

bacteriophage
Forum Newbie

Topics: 3
Posts: 24

02/09/08 - 12:53 AM

you can request to stop withholding taxes if you find all appropriate documents and applications to your payroll. But in my particular case they stopped to withhold social security and medicare but still were withhelding income taxes, but I got all of them back by tax return and going to claim for all income taxes back this year...

crazyserb
Forum Newbie

Topics: 4
Posts: 41

03/02/08 - 05:28 PM

bacteriophage wrote:
you can request to stop withholding taxes if you find all appropriate documents and applications to your payroll. But in my particular case they stopped to withhold social security and medicare but still were withhelding income taxes, but I got all of them back by tax return and going to claim for all income taxes back this year...

Yes, you're right, but just to point it out, it's only true for certain countries!!! Not for all... I had to pay only income taxes and I got a lot back by tax return but NOT ALL. Good for you!! wink

misty
Forum Elite

Topics: 58
Posts: 284

03/14/08 - 09:21 AM

how do we know which are those countries ?

crazyserb
Forum Newbie

Topics: 4
Posts: 41

03/15/08 - 05:04 PM

misty wrote:
how do we know which are those countries ?

There is a list of all countries with "treaty", that's how they call this agreement between the countries. Try IRS website and search for treaty, you should be able to find info.
good luck

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