F1 Visa but left USA

[shreyanshbothra1217]

Hello all,

I entered USA in 2017 on F1 visa. I was in USA till April 2021 and left for India and never returned back to USA. 

Even after leaving USA, I was continuing my job and working remotely from India till April 2022. My taxes(Federal, State, FICA) were witheld and I would like to know how to get that refunded as I was practically not working in US. I would like to file return for year ending December 2022. 

My 5 year calender period for F1 visa got over in December 2021, but I had already left USA and even after that my company witheld FICA. 

Please let me know:

1. Which tax form to use : 1040 or 1040 NR ?

2. Will I he able to get FICA back as I had already left USA and did not enter USA in 2022 at all ? Which form to file for the same?

[Opus 17]

It sounds like you probably pass the substantial presence test for 2021.  Did you file a 2021 tax return?

For 2022 (and assuming no complications that I don't know about), it sounds like you would file federal and state returns showing zero taxable income, zero tax owed, and claiming a refund of the withholding.  For federal, you would file a 1040-NR, Turbotax does not support this.  You will need to find a different software provider.

What state was withholding taxes?  If you worked in one of the states that applies a convenience of the employer rule, you might have an issue depending on why you moved.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-w-2/employer-withholding-state-taxe...

As far as I know, you don't get the social security and medicare tax back, but you may be able to claim a benefit when you reach retirement age.

@pk

[shreyanshbothra1217]

@Opus 17 Thanks for the reply.

Yes, I did file tax return for 2021. 
So I will go ahead and file 1040 NR. 

For FICA refund, can I submit Form 843 and ask for refund?

[Opus 17]

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@shreyanshbothra1217 wrote:

@Opus 17 Thanks for the reply.

Yes, I did file tax return for 2021. 
So I will go ahead and file 1040 NR. 

For FICA refund, can I submit Form 843 and ask for refund?

---

Form 843 is the correct form but I don't know if you are eligible.  I would like another expert to comment.  

https://www.irs.gov/individuals/international-taxpayers/aliens-employed-in-the-us-social-security-ta...

[pk]

@shreyanshbothra1217  --- Namaste Shreya ji

Agreeing with my colleague @Opus 17  for excellent response to your questions/ situation,   here is a page from the IRS on how to  ask for refund of FICA taxes withheld in error --->

Social Security tax/Medicare tax and self-employment | Internal Revenue Service.

In general , as noted by  @Opus 17 , since the work was performed in India ,  the  income is sourced  to India  and thus US would have no right to tax this  ( at least at federal level ).  The  state  where you were resident earlier or where the  US entity  is registered/located may however disregard the tax treaty  and try taxing  this income.  

The procedure for your "employer" at the time  would have been to issue you a  1099-NEC and not withhold any taxes  ( federal, State and FICA).  The trouble now is that the  company books have been closed  for two years and it is unlikely that they  would be willing to  take any corrective actions.   Also note  that  if you did not file a 2022 return  to claim the taxes withheld in error,  while IRS may indeed refund  the taxes withheld but may impose a penalty  -- "  failure to file".

I am assuming here that you did file a return  in India  recognizing this  income ( for work  done  for a foreign entity ).

Is there more I can do for you , Shreya ji ?

Namaste

pk