Hi, Can any one tell me if the income earned on OPT is taxable or not?

Question

If not, is there is a way to get all the taxes paid back? I am on student visa(F1) and working on OPT.

Answer 1

Optional Practical Training (OPT) is temporary employment authorization granted with regard to your immigration status. If you have income earnings greater that your standard deduction and exemption (most likely $8450) you would be required to file an income tax return. You could file a return if you had withholding that would be refundable regardless of the amount of your income. You may be required to file a Non Resident return and get an ITIN but you have not provided enough information to determine that.

Answer 2

OPT, or Optional Practical Training is a temporary employment authorization that allows F-1 visa students to gain practical experience in their field of study off campus.

In general, the income earned is fully taxable unless there is a tax treaty to the contrary.

As a non-resident alien on an F-1 visa participating in employment authorized by USCIS you are generally exempt from Social Security and Medicare taxes but that will also depend upon any tax treaties in place.

See IRS Pub 519, along with the following link: http://www.irs.gov/businesses/small/international/article/0,,id=96431,00.html