Paying Social Security/Medicare (FICA) taxes as a TN holder

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Krakus
Posts: 7
Joined: Sun Sep 14, 2014 11:44 pm

Paying Social Security/Medicare (FICA) taxes as a TN holder

Post by Krakus »

Hi, I've got a question concerning having to pay Social Security and Medicare (FICA) taxes as a Canadian working in the States. I just moved recently so I'm rather a newbie in cross-border tax matters. I'm residing on a TN, and currently expect to return to Canada within a few years, and hence I won't derive any benefit from these services.

Technically, I believe I'm considered a non-resident alien in the U.S. and a resident of Canada for Canadian tax purposes. Is there any way of getting around having to pay these significant FICA taxes on my U.S. payroll, or is it unavoidable in this situation?

Thanks in advance.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

It is unavoidable, since you are an employee working in US (this would even be the case if you continued to live in Canada and commuted to your job in US) it is not based on residency, it is based on employment in US.

but don't think you will not benefit. If you accumulate 6 quarters of contributions, you will get some SS even if you return to Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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