I am a Non-Resident Alien (NRA) and have been in the USA for less than 5 years. According to my status, I am exempt from FICA taxes. However, my employer recently switched to a new payroll system that cannot exclude FICA when deducting federal taxes. This means that if they deduct my federal tax, they will also deduct FICA, which I am not required to pay. The alternative they offered is to deduct $0 for my federal tax.
Here are my concerns:
- If my employer deducts nothing for my federal tax, how can I ensure I pay the correct amount when I file my tax return?
- Will I face any issues or penalties when filing my tax return due to the lack of federal tax deductions throughout the year?
- Is there a way to pay the correct federal tax amount without getting FICA deducted, given that the IRS does not refund FICA to non-residents?
Any guidance or advice on how to handle this situation would be greatly appreciated. I want to ensure compliance with tax laws and avoid losing money from my paycheck.
