Form 8233

[Greta]

A Virginia public university hired a Canadian professor. His W-2 showed social security and medicare income of 20K (which client says was his salary) but W-2 wage income as 10K. He had no Canadian income from rest of the year. The HR person said she incorrectly used Form 8233, but no amended W-2 will be forthcoming. Neither she nor I understand Form 8223. I assume he is an alien resident. Should I tax him only on the 10K that's in Wage box? Is he eligible for ACA health insurance? For EIC if he lived in US more than 6 months?

[sjrcpa · Accepted solution]

Did he contribute to a 403(b) or 401(k) Plan?

EDITED to add:

The 8233 exempted him from withholding - rightly or wrongly.

Was this a temporary (one semester) hire or permanent hire?

Client may be exempt from Social Security withholding because he is covered by Canada's SS equivalent.

What kind of visa does he have?

I'd use the W-2 amounts.

[TaxGuyBill]

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@Greta wrote:

I assume he is an alien resident.

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If you are preparing his tax return, you absolutely can't assume that.  You need to ask the proper questions to find out.

[Greta]

He is a resident alien.

[sjrcpa]

If so, he has to pay US tax on his worldwide income. 

[Greta]

Client "found" a W-2c that showed all three boxes (wage, medicare, and soc sec) to all be the same. I wasted your time for naught. Sorry!