I am a foreign national and last year I changed my type of VISA from F-1 student to H-1 work VISA. Does my VISA status change how I file my tax return or what forms I use?
It depends on whether or not you qualify as a resident alien. As a foreign national temporarily in the U.S. and now under an H-1 VISA, you must file Form 1040NR, U.S. Nonresident Alien Income Tax Return and Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition (if you do not meet the substantial presence test). In order to file a Form 1040, Individual Tax Return, you must meet the Substantial Presence Test. Please refer to Publication 519, U.S. Tax Guide for Aliens, for a discussion of the Substantial Presence Test.
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I am an F-1 student status who was employed during my school studies and directly afterwards I completed practical training. Do I have to pay Social Security or FICA taxes? Which taxes should be taken out of my pay?
Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. However, you are covered under the social security program for these services if you are considered a resident alien, even though your nonimmigrant classification ("F," "J," "M," or "Q") remains the same. Social security and Medicare taxes will be withheld from your pay.
Additionally, any student who is enrolled and regularly attending classes at a school, college, or university may be exempt from social security and Medicare taxes on pay for services performed for such school, college, or university.
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Are nonresident alien students, with F-1 VISAs and employed by a U.S. company during the summer, required to have federal taxes withheld from their paychecks?
The following discussion generally applies only to nonresident aliens. Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U.S. citizens. Therefore, your compensation, unless it is specifically excluded from the term "wages" by law, or is exempt from tax by treaty, is subject to graduated withholding. Nonresident aliens must follow modified instructions when completing Form W-4. Please refer to Publication 519, U.S. Tax Guide for Aliens, for directions on completing Form W-4, Employees Withholding Allowance Certificate.
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I am a student from People's Republic of China currently studying in the United States. How does the tax treaty between the U.S. and China apply, especially for students with scholarship and fellowships?
If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. Please refer to Publication 519, U.S. Tax Guide for Aliens.
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