Students graduating with Master’s degree have 12 months of Optional Practical Training period to find the job, apply for H1B Visa. So, far students can use upto 12 months of Optional Practical Training. But, Congress is lobbying Bush Administration to increase Optional Practical Training time frame from 12 months to 29 months. This will provide a short term fix for H1B visa shortage. If the Optional Practical Training time frame were to increase then students in F1 Visa don’t need to worry about When to Graduate to avoid OPT to H1B Gap issues.
Next questions that comes to everyone is about FICA Taxes. If they decide to increase Optional Practical Training from 12 months to 29 months, does students working using Optional Practical Training will not pay FICA Taxes ( Social Security and Medicare ) which comes to about 7% of the pay check.
Students using Optional Practical Training period try to stay in OPT status as long as possible. Since they are not eligible to pay FICA taxes. So, if Optional Practical Training is increased to 29 months, will they have to pay FICA taxes too? We have to wait and see what happens. Till then students working under OPT enjoy 7% more earning in their paycheck. If your employer is deducting Social Security and Medicare Taxes from your paycheck, you can claim it back while filing taxes.
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