IRS APPROVED ERO SERVING ALL 50 STATES
RAPID REFUNDS - TAX REFUND LOANS - VERY LOW FEES
OVER 15 YEARS EXPERIENCE
IRS APPROVED ERO SERVING ALL 50 STATES
RAPID REFUNDS - TAX REFUND LOANS - VERY LOW FEES
OVER 15 YEARS EXPERIENCE
Alien Liability for Social Security and Medicare Taxes of Foreign Teachers, Foreign Researchers, and Other Foreign Professionals
In general aliens performing services in the United States (U.S.) as employees are liable for U.S. Social Security and Medicare taxes.
However, 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 as U.S. Citizens.
Nonresident 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 nonimmigrant status.
Non-Resident Alien Teachers, Researchers and Other Professionals under J-1 and Q-1 Visa Status
Foreign scholars, professors, teachers, trainees, researchers, physicians, au pairs, summer camp workers, and other non-student aliens temporarily present in the United States in J-1, or Q-1 nonimmigrant status for less than 2 calendar years are generally nonresident aliens under residency rules of IRC section 7701(b).
These nonresident teachers, researchers and scholars are exempt from Social Security Tax and Medicare Tax on wages paid to them for services performed within the United States.
To qualify for the exemption the services performed must be allowed by United States Citizenship and Immigration Services (USCIS) for these nonimmigrant statuses, and such services are performed to carry out the purposes for which such visas were issued to them.
Exempt Employment includes:
- Employment as a professor, teacher or researcher.
- Employment as a physician, au pair, summer camp worker, or any other non-student category of exchange visitor.
Limitations on exemption:
- The exemption does not apply to spouses and children in J-2 nonimmigrant 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 J-1, or Q-1 nonimmigrants who change to an immigration status which is not exempt or to a special protected status.
- The exemption does not apply to J-1, or Q-1 nonimmigrants who become resident aliens.
Family Members of Foreign Teachers, Foreign Researchers, and Other Foreign Professionals
The IRS has issued regulations which clearly stipulate that the spouses and dependents of alien scholars, trainees, teachers, or researchers temporarily present in the United States in J-2 status are NOT exempt from Social Security and Medicare taxes, and are fully liable for Social Security/Medicare taxes on any wages they earn in the United States because such aliens have not entered the United States for the primary purpose of engaging in training, teaching, or research.
However, if the alien in J-2 status is employed doing a type of work which is exempt from Social Security and Medicare tax under the code, then the exemption still applies.
For example, the wages paid to a J-2 teacher employed by a state university might be exempt from Social Security and Medicare tax if the state has not elected Social Security and Medicare coverage for state employees under Section 218 of the Social Security Act.
Change in Status of Foreign Teachers, Foreign Researchers, and Other Foreign Professionals
Alien scholars, trainees, teachers, or researchers in J-1 or Q-1 status who change to a nonimmigrant status other than J-1 or Q-1 will become liable for Social Security/Medicare taxes in most cases on the very day of the change of status.
Teachers, trainees, and researchers in H-1b status, and alien nurses in H-1a or H-1c status, are liable for Social Security/Medicare taxes from the very first day of U.S. employment, regardless of whether they are nonresident or resident aliens, and regardless of whether their wages may or may not be exempt from federal income taxes under an income tax treaty.
The accept ion being that unless the provisions of a Totalization Agreement relieve such aliens from liability for U.S. Social Security/Medicare taxes exists. The United States has entered into 26 Totalization Agreements, but not with the Philippines.
Request Refund of Social Security or Medicare Taxes Withheld in Error
If social security or Medicare taxes were withheld in error from pay and based on your filing status as a J1 Non-Resident and you are not subject to these taxes, contact the employer who withheld the taxes for a refund.
99.9% of the time your employer will not do anything to try to get you the money back. This is because they have already submitted it and don't know what to do or just don't want to deal with it. Most employers, they will tell you that its on you to try and get it refunded to you. So most J1 teachers are simply out of luck, and on their own to get it back on your own.
This is where we come in. If you are unable to get a full refund of the withheld amounts from your employer, you will have to file a claim for refund with the Internal Revenue Service, Social Security Administration and also with Medicare.
You can claim for refund with the IRS which is a called an "Abatement". This can be done separately without your tax return and you also need to declare on a a few specific forms. You must declare what is called the why Information; Regarding "Request for Refund of Social Security Tax that was Erroneously Withheld on Wages Received by a Non-Resident Alien on an F, J, or M Type Visa". Along with the request you must submit additional required supporting documents.
Processing these claims and requests for refund
Starting in 2024, We will be processing these claims and requests for clients who meet the qualifying criteria.
If you have consistently filed your income taxes as as a Non-Resident foreign worker using the 1040NR and also filed with your State taxes as a Non-Resident, the process is more likely than not going to go pretty smooth.
This will be done on a billable hour basis. Our billable hour for document preparation is $150 per hour, with a 2 hour minimum. The estimated time for us to produce all the documentation with all the forms to process these claims and requests for refund is approximately 2 hours. So your looking at an estimated $300 for us to go thru the process for you to get possibly thousands of dollars back that you had deducted from your pay over the months and even years and cant get back any other way.
To get started, we will have you sign a legal document preparation "retainer agreement". We will also have you sign a specific power of Attorney allowing us to talk to and discuss this specific legal matter on your behalf specifically with the IRS, Social Security Administration and any other governing connected party as needed.
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