permanent resident tax situation

[goshopbg]

Hi all,

I am going to file N-400 in April.

I just noticed that my accountant filed my state tax return for 2005 and 2006 with form 1-NR/PY like part year resident.I stayed and worked in the USA for 7 months these years and for the rest of the time was abroad.Is this a problem for applying for citizenship?May I answer "No" to the question about the taxes in N-400?



Also for all these years I have been paying Federal and State taxes only(not ss and medicare).I have been told by a friend,I need to pay fed and state tax only.But right now I am reviewing the forums and found out that this might be a problem.

Do they need to see the tax return transcrips for the federal tax only or for all of them?

Is there anything I might be asked about ss and medicare taxes at the interview?

Thank you in advance.

Best Regards

 

[WBH]

Hi all,

I am going to file N-400 in April.

I just noticed that my accountant filed my state tax return for 2005 and 2006 with form 1-NR/PY like part year resident.I stayed and worked in the USA for 7 months these years and for the rest of the time was abroad.Is this a problem for applying for citizenship?May I answer "No" to the question about the taxes in N-400?



Also for all these years I have been paying Federal and State taxes only(not ss and medicare).I have been told by a friend,I need to pay fed and state tax only.But right now I am reviewing the forums and found out that this might be a problem.

Do they need to see the tax return transcrips for the federal tax only or for all of them?

Is there anything I might be asked about ss and medicare taxes at the interview?

Thank you in advance.

Best Regards

You owed federal government SS taxes and medicare taxes and it is not as simple as "we all leave something out in our tax". You simply
did not pay SS taxes at all as required by law. You should answer Yes to the "Do you owe taxes". But maybe there is a way out --
contact SSA and paid all owed SS and medicate taxes before filing N400 and as long as SSA does notr care to pursue crminally your failure to pay SS taxes, I think you can technically answer No to all those tax related questions. The question on N400 is "Do you owe any Federal, State or local taxes that are overdue" not "Do you owe or did you at any time ow any Federal, State or local taxes that are overdue?". So as long as before filing you pay up all owed SS taxes, you may be fine in answering No to that question. But consult a CPA first. In theory, SSA can
file criminal charge against yoru failure to pay SS taxes

 

[DreamUSA]

I fully agree with Bob. Find and consult with a good CPA practice who does understand international matters (Not HR block etc.)

 

[WBH]

I fully agree with Bob. Find and consult with a good CPA practice who does understand international matters (Not HR block etc.)

Even for his USA income, He also said he worked 7 month in USA those years but still di dnot paid SS taxes. Should his employer paid 7.5% for him withhold 7.5% of his salary as SS taxes? If it is 1099 money, the he should haved paid 15% of income as self-employment taxes

 

[DreamUSA]

Even for his USA income, He also said he worked 7 month in USA those years but still di dnot paid SS taxes. Should his employer paid 7.5% for him withhold 7.5% of his salary as SS taxes? If it is 1099 money, the he should haved paid 15% of income as self-employment taxes

Yep. well said. i am sorry i meant to say WBH not "bob"

 

[Jackolantern]

Also for all these years I have been paying Federal and State taxes only(not ss and medicare).I have been told by a friend,I need to pay fed and state tax only.But right now I am reviewing the forums and found out that this might be a problem.

If you were employed on a W2 basis, your employer should have withheld and paid the SS and Medicare taxes for you. Otherwise, you would have to pay the self-employment equivalent yourself. Have your accountant look over those details for you.

 

[WBH]

If you were employed on a W2 basis, your employer should have withheld and paid the SS and Medicare taxes for you. Otherwise, you would have to pay the self-employment equivalent yourself. Have your accountant look over those details for you.

If one works on W-2 or 1099 earned income but does not pay SS taxes, he will get a letter from SSA. This happens to
many who are practical training H-1 etc.

I am not sure if one can start to pay SS taxes for past years he did not pay. I heard SSA is pretty sluggish that is
if you paid SS taxes you don't have to pay, you can not get it back and similarly if you forget to pay SS taxes,
it is very hard to make up UNLESS SSA come to you first for them.


For one thing SSA can claim you wanting to make up for the past is becaus eyou want to get SS benefits.
For example, it is possible soemone who near retirement find he has only got 8-9 years of SS credits
but he need 10 years of credit at minimum to get retirement benefits. Then he can try his best to
make up some income and tell SSA now that he forgot to pay his SS taxes 5 years ago and want to pay now

SSA may just refuse his payment in that case

 

[WBH]

If you were employed on a W2 basis, your employer should have withheld and paid the SS and Medicare taxes for you. Otherwise, you would have to pay the self-employment equivalent yourself. Have your accountant look over those details for you.

Some H1Ber do not pay SS taxes by telling their HR they do not need to pay. If they do not update with their HR after getting the GC,
then HR simply keep the way it was

 

[Jackolantern]

If one works on W-2 or 1099 earned income but does not pay SS taxes, he will get a letter from SSA. This happens to
many who are practical training H-1 etc.

It is possible he was already paying SS and Medicare without knowing it, because of his employer.

I am not sure if one can start to pay SS taxes for past years he did not pay. I heard SSA is pretty sluggish that is
if you paid SS taxes you don't have to pay, you can not get it back and similarly if you forget to pay SS taxes,
it is very hard to make up UNLESS SSA come to you first for them.


For one thing SSA can claim you wanting to make up for the past is becaus eyou want to get SS benefits.
For example, it is possible soemone who near retirement find he has only got 8-9 years of SS credits
but he need 10 years of credit at minimum to get retirement benefits. Then he can try his best to
make up some income and tell SSA now that he forgot to pay his SS taxes 5 years ago and want to pay now

SSA may just refuse his payment in that case

Whatever it is, he needs an accountant to go over his paystubs and W-2's and 1099's to figure what needs to be done or not done.

 

[WBH]

It is possible he was already paying SS and Medicare without knowing it, because of his employer.

We receive a letter from SSA 3 month before out birth date each year telling us our past SS tax payment history and benefits we are already eligible. If the OP keep such letter he can go review these letters

 

[tomja1234]

I guess first the OP needs a real accountant , come on, any one who qualified to prepare and file the tax return knows you have to pay these taxes. are you self-employed ?

I know some H1 folks thought they don't need to file these tax and eventually ented up paying for the last 5 to 6 years together. Some of the HR folks have no clue about it

 

[WBH]

I guess first the OP needs a real accountant , come on, any one who qualified to prepare and file the tax return knows you have to pay these taxes. are you self-employed ?

I know some H1 folks thought they don't need to file these tax and eventually ented up paying for the last 5 to 6 years together. Some of the HR folks have no clue about it

Some H1B folks may not want to pay SS taxes because either they do not want to get the GC or even if they want to they are not sure if they can get the GC. H1B has only 6 years, paying SS taxes for 6 years is no more better than not paying at all for the purpose of getting retirement benefits.

So it may be a good idea for them they do not pay and then all all Hi1b years ss tax together once they get the GC. If they
do not stay in the USA, then they do not pay SS taxes in vain. If they get the GC then they can make up for their benefits all together by paying severay years' SS tax together.

 

[tomja1234]

Some H1B folks may not want to pay SS taxes because either they do not want to get the GC or even if they want to they are not sure if they can get the GC. H1B has only 6 years, paying SS taxes for 6 years is no more better than not paying at all for the purpose of getting retirement benefits. .

My understanding is there is no way to opt out from paying SS tax. you are liable for FICA (Social Security and Medicare) taxes while you are on H1-B status.

 

[WBH]

My understanding is there is no way to opt out from paying SS tax. you are liable for FICA (Social Security and Medicare) taxes while you are on H1-B status.

That is the supposed case. But I do know many who start to pay SS taxes only after getting the GC.

 

[Jackolantern]

My understanding is there is no way to opt out from paying SS tax. you are liable for FICA (Social Security and Medicare) taxes while you are on H1-B status.

But the HR people responsible for administering it don't necessarily know which visa status allows being exempt from Social Security and which doesn't. So they sometimes end up withholding SS from people who are not supposed to pay, or not withholding it for people who should pay.

 

[WBH]

But the HR people responsible for administering it don't necessarily know which visa status allows being exempt from Social Security and which doesn't. So they sometimes end up withholding SS from people who are not supposed to pay, or not withholding it for people who should pay.

The employers have to pay half of SS tax for their employees so that they love it if their employees can convince the HR they do not need to pay SS taxes typically when on Fi practical training when
F1 students still can file 1040NR. When they switch to H1B, they are supposed to tell HR they should start to pay SS taxes. I know someone on F-1 practical training get their SS tax withheld. soon the
that year's 1040, they put exactly the same amount into that excessive SS tax credits and add a note that as F-1 students they do not need to pay SS taxes

 

[tomja1234]

But the HR people responsible for administering it don't necessarily know which visa status allows being exempt from Social Security and which doesn't. .

I know some people have no clue but why do they call themselves HR people if they don’t know these rules.
I know of my fried’s wife’s case where that company wasn’t withholding and paying both SS and Medicare tax for 5 to 6 years and they found out the error later. She was lucky that company settled it and paid both employee and employer portion for the past 5 years and only deducted the current year from her salary. Some times you get lucky ….

 

[goshopbg]

Thank you for answering folks.
This is so bad for me.I did not expect something like that.
So you think I should contact SSA and explain them about my case.They will probably tell me how much I owe them for these 5 years.And I need to pay(it is probably going to be a lot of money).
Is SSA responsible for ss and medicare tax as well???
How much in percentage it would be from my income???
Is not my employer responsible for half of it???
Are ss and med federal taxes and ARE they visible in these tax return transcripts???
Should everyone have the transcripts with him at the interview???
Thank you so much for your help.

Best Regard

 

[WBH]

Thank you for answering folks.
This is so bad for me.I did not expect something like that.
So you think I should contact SSA and explain them about my case.They will probably
tell me how much I owe them for these 5 years.And I need to pay(it is probably going to be a lot of money).
Is SSA responsible for ss and medicare tax as well???
How much in percentage it would be from my income???
Is not my employer responsible for half of it???
Are ss and med federal taxes and ARE they visible in these tax return transcripts???
Should everyone have the transcripts with him at the interview???
Thank you so much for your help.

Best Regard

I don't know if your past employers still want to pay half of your SS taxes or not but perhaps they are required to do by law.
Unless they argue their liablity already run out so they ar enot liable any more.

You can order your tax transcripts. It seems IRS only cares about income taxes and 1040 form itself does not directly reflect how much or if you ever paid SS taxes. But W-2 may be part of your tax transcripts and how much SS taxes are rlected on it. I really think IOs will not notice
your failure to pay SS taxes unless you offer to tell them. These guys really do not have time, energy, or mood to go deep into your tax details
because they may not even bother to go that deep in past immigration details. If they do that then the average interview duration will
not be just 10-20 minutes but would be 60-120 minutes.

It is your decision whether you offer to tell them or not.

 

[NJOY_SCUBA]

Thank you for answering folks.
This is so bad for me.I did not expect something like that.
So you think I should contact SSA and explain them about my case.They will probably tell me how much I owe them for these 5 years.And I need to pay(it is probably going to be a lot of money).
Is SSA responsible for ss and medicare tax as well???
How much in percentage it would be from my income???
Is not my employer responsible for half of it???
Are ss and med federal taxes and ARE they visible in these tax return transcripts???
Should everyone have the transcripts with him at the interview???
Thank you so much for your help.

Best Regard

While I agree with responses on the thread, I think you should find out first if you were required to pay FICA at each job. There are certain situations and certain employment positions that don't require you to pay FICA. Of course, you don't get benefits of FICA in future either. Another suggestion - Don't ask your friend