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Tax withholding on CPT?

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  • Tax withholding on CPT?

    Hi DesiOPT! Hope you guys are doing great! I have an Urgent question!!

    URGENT!:I am currently on CPT and working with a Consulting firm in New Jersey.
    -I want to know how much Tax can the employer withhold from my paycheck?
    -Lets say, if I make 4K, they say withhold is 1K every month! Is this correct?
    1. Aren't CPT students taxed at a much lower rate? Appreciate the help.

    This was posted on https://www.facebook.com/desiopt1 on Nov 8th 2013

  • #2
    Hmm tax with holding is based on u r w4 and current.tax rates ..

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    • #3
      I am not sure about the exact amount but we should pay federal and state taxes on CPT and OPT . If you lived in USA for more than 5 years although you are on CPT or OPT you should pay federal taxes + state taxes +Medicare + SSN

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      • #4
        non resident aliens are exempted for FICA taxes ..
        the term" non resident" is with respect to irs ..

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        • #5
          on CPt/OPT, only Federal and state tax !! talk to your employer and fill up new W4.

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          • #6
            Just pay federal and state tax
            Refill your w4
            And file with 2 exempts
            The it should be around 19% of your paycheck

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            • #7
              Federal, state, and local taxes. Unless you qualify under a tax treaty between the United States and
              your home government, your earnings as an F-1 student will be subject to applicable federal, state, and local taxes, and employers are required by law to withhold those taxes from your paychecks. By April 15 of each year, you must file a federal income tax return and a Form 8843, "Statement for Exempt Individuals, covering the prior calendar year--whether you owe more taxes or not and a 1040NR-EZ if any federal taxes is withheld. Always make sure to let your employer know your visa status.

              More at: http://www.eckerd.edu/.../OPT%20application%20guide.pdf

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              • #8
                Social and Medicare

                -Foreign students in F-1, J-1, M-1, Q-1 or Q-2 nonimmigrant status who have been in the United States less than 5 calendar years are still NONRESIDENT ALIENS and are still exempt from social security/Medicare taxes.
                -This exemption also applies to any period in which the foreign student is in "practical training" allowed by USCIS, as long as the foreign student is still a NONRESIDENT ALIEN under the Internal Revenue Code.
                -Foreign students in F-1, J-1, M-1, Q-1 or Q-2 nonimmigrant status who have been in the United States more than 5 calendar years are RESIDENT ALIENS and are liable for social security/Medicare taxes (unless they are exempt from FICA under the "student FICA exemption" discussed below).
                More at: http://1.usa.gov/18dc6aH

                Foreign Student Liability for Social Security and Medicare Taxes
                Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

                In general aliens performing services in the United States 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.

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