Was wondering if h-1 b guys pay slightly higher tax compared to permanent residents or citizens ? My online research shows there’s no difference. All pay same tax but the social security tax benefits are not enjoyed by visa holders . Just wanted to confirm
They should
Yes. Opportunity cost is the biggest
No
Not a higher tax per law but higher tax in reality due to not using some of the deductions in many cases (eg mortgage deduction as many of h1bs wait to get GC first to buy home).
I know so many of my friends on h-1b who bought homes here in Bay Area. Many fearless people here lol. But they do use mortgage deductions. Are you saying non h-b guys can claim more deductions ?
This is a stupid analogy. You can still buy a house on h1-b no one is stopping you. Buying property doesn’t require a visa.
It’s a work visa, not a disability and retirement visa. Why would you expect to receive benefits without qualifying for them? Work 40 quarters to qualify like anyone else.
That is the point, there is no realistic way of getting SS benefits if you lose your job on H1B, even if you worked for 40 quarters.
Then work visa holders shouldn’t have to contribute towards SS either. It’s not an entitlement, it’s something you have contributed towards your entire working life.
H1B here, same taxes, but no SS benefits. So, effectively higher taxes
This but SS still keeps track of your contributions and they count if you eventually get PR. Those on L1 don’t have to pay SS and Medicare.
Also, some countries have agreements with US, where they can transfer the SS credits to their country, if they decide to go back. My country does not have such an agreement and I don’t see a realistic chance of GC anytime soon (you could guess my country by now :P) So, effectively, it’s higher tax rate. As someone pointed out, it’s an opportunity cost I was willing to pay.