Are students on F1 visa entitled to Vermont taxation.?

Question

I was told that international students dont have to pay taxes if residents of VT. I earned $ 13000 and was surprised that have to pay around 2000 $ as taxes for both federal and state taxes. It seems unfair since for an international students thats too much

Answer 1

Students on an F-1 visa generally do have to pay income taxes. They are generally exempt from Social Security an Medicare taxes IF their employment is approved by the USCIS.

That said, $2,000 sounds quite high. The Federal tax on $13,000 would be less than $500 or so and I can't imagine VT tacking on $1,500 to that. Are you referring to the amounts withheld? If so, file your tax returns and you should get back the excess.

If the employer improperly withheld Social Security and Medicare taxes, you'll have to get that back from them. Your paperwork from USCIS should prove your exemption from those taxes. However, if you worked outside of your authorization from USCIS you'd be advised to keep quiet about those taxes. Making waves could result in loss of your F-1 visa and deportation.