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why are j-1 exempt from social security tax?

  • 15-12-2011 12:56am
    #1
    sleepyescapade
    Registered Users, Registered Users 2 Posts: 788 ✭✭✭


    I am wondering specifically why, it was never explained and I did not ask my sponsor until now but while I'm waiting for an answer from them I'd appreciate if anybody on here had the answer :D My employer's accountant seems to think that I have to pay it and I found some conflicting statements online.


Comments

  • #2
    lil_lisa
    Registered Users, Registered Users 2 Posts: 1,829 ✭✭✭lil_lisa


    Social security tax is paid for social security benefits. On a J-1 visa, you will never be in a position to claim these benefits, therefore you don't have to pay them. A lot of companies have payroll systems that don't take this into account (for J-1 visas and any other position where you wouldn't receive these benefits). In many of these companies, its not worth it for them to try and change the system so one person can avoid this tax.

    What most people end up doing is filing for a return of this money after their visa is up. I filed mine along with all other tax documentation on April 15th but I don't know if social security refunds for J-1 are subject to this deadline. It is something worth looking into.

    Hope that answers your question :)


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