Social Security (FICA/MEDICARE) Taxes

Anyone who is employed in the United States may have to pay Income Tax. However, lawfully employed nonresident F-1 and J-1 visa holders are not subject to withholding of Social Security (F.I.C.A./ Medicare) tax. Therefore, wages received by international students in F-1 and J-1 status in the following circumstances are not subject to this withholding:

On-campus employment at the school the U.S. Immigration and Naturalization Services (USCIS authorized them to attend.

• On-campus employment at the school the U.S. Immigration and Naturalization Services (USCIS authorized them to attend.
• Off-campus work with USCIS permission (e.g., economic hardship).
• Approved practical (F-1) or academic (J-1) training.

To claim an exemption from Social Security tax, the international student must provide verification of immigration status and proof of work permission to his/her employer. Please note that this exemption does not apply to persons in J-2 status.

Occasionally Social Security tax is withheld in error. You may not request a refund on your annual income tax return. Instead, you must contact the employer who withheld the tax. If the employer in unable to provide a refund, you may complete Internal Revenue Service (IRS) Form 843, 'Claim for Refund and Request for Abatement' and also Form 8316, 'Information Regarding Request for Refund of Social Security Tax Erroneously Withheld on Wages Received by a Nonresident Alien on an F, J, or M Type Visa.'

Submit these forms with copies of your Form W-2, 'Wage and Tax Statement,' or other statement of income, Form I-94, and proof of permission to work to the IRS Center where your employer files tax reports. If you do not know the location of this service center, submit your request to:

Internal Revenue Service Center
Philadelphia, Pennsylvania 19255

Include a statement from your employer showing the amount of the refund you requested and the amount (if any) reimbursed by your employer. If you cannot obtain such a statement, you must verify that you have contacted your employer and that the employer was unable to assist you with the refund.