Federal and State Income taxes are deducted from your pay unless you are eligible for and have signed a tax treaty.
Non- resident alien employees will be exempt from Social Security and Medicare (FICA Taxes) as outlined below:
F1 visa holders are exempt for five calendar years based on date of entry into the U.S.
J1 visa holders are exempt for two calendar years based on date of entry into the U.S.
Non-resident aliens who are students can be exempt from FICA taxes while they are enrolled half time or greater (six hour or more in the fall and spring semesters and three hours or more during the summer sessions) and are working part time. The student exemption will take effect once you have exceeded the FICA exemption as outlined above.
The IRS and UNM state that non-resident aliens who have not met the substantial presence test must claim single and 0 or 1 exemption on their W4 form.
All F1 visa holders except those from India and Germany must be in the US for a period of five calendar years before they can claim a higher number of exemptions than stated above. Individuals from India and Germany may claim more than one exemption, with the understanding that they may owe additional federal and state taxes when they file their tax returns with the IRS.
All J1 visa holders except those from India and Germany must be in the US for a period of two calendar years before they can claim a higher number of exemptions than stated above. Individuals from India and Germany may claim more than one exemption, with the understanding that they may owe additional federal and state taxes when they file their tax returns with the IRS.
All H1-B visa holders except those from India and Germany must be in the US for a period of 183 days before they can claim a higher number of exemptions than stated above. Individuals from India and Germany may claim more than one exemption, with the understanding that they may owe additional federal and state taxes when they file their tax returns with the IRS.
