Liability for Social Security and Medicare Taxes

Foreigners working and performing services in the U.S. usually are obligated to pay Social Security and Medicare taxes on their income earned.

• Permanent Residents (Green Card Holders)- Have the same liability as U.S. workers.
• Nonresident Workers (Temporary Basis) - Have the same liability as U.S. workers except for the following classes of visa;
• Visa - Employees of foreign governments with regard to their foreign government paid salary. servants, spouses and children are not so exempt.
• D-Visa - Some crew members owe the taxes and some do not. It depends on who owns the vessel or aircraft and whether the services are performed within or outside the U.S.
• F-Visa - Students are exempt from these taxes provided the work is authorized by the USCIS. Spouses and children will owe taxes.
• J-Visa - Exchange workers are exempt from these taxes provided the work is authorized by the USCIS. Spouses and children will owe taxes.
• M-Visa - Vocational trainee workers are exempt from these taxes provided the work is authorized by the USCIS. Spouses and children will owe taxes.
• Q-Visa - The workers are exempt from these taxes provided the work is authorized by the USCIS. Spouses and children will owe taxes.
• G-visa - Employees of International Organizations are exempt from these taxes for services paid to them by these organizations.
• H-Visa - H-2A Agricultural workers and H-2 residents of the Philippines who work in Guam are exempt from these taxes.

Self-Employment Tax Liability

Nonresident aliens who are able to legally create their own work are not liable for these taxes. However, once they become resident aliens they owe these taxes like the rest of us.

This is only a primer of the tax law. Specific questions should be addressed to an accountant or attorney qualified in tax analysis.