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Filing
Requirements
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Residency
Status
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The Tax
Return
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Tax
Treaties
State
Taxation
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Getting
an ITIN
|
Social
Security
tax |
Employer
Withholding
Foreign
National
Tax Guide
Must You
Pay
Social
Security
and
Medicare
Tax?
Nonresident
aliens on
F-1, J-1,
M-1 or
Q-1 visas
are not
subject
to social
security
and
Medicare
taxes
(FICA) if
services
are
performed
to carry
out the
purpose
for which
they are
admitted
to the
United
States
[IRC sec.
3121(b)(19)].
This
generally
includes
on-campus
work for
which
authorization
is
granted
on Form
I-94,
Arrival
and
Departure
Record,
or Form
I-20,
Certificate
of
Eligibility
for
Nonimmigrant
Student
Status.
A
nonresident
alien
admitted
to the
U.S. as a
student
is not
permitted
to work
off
campus
for a
wage or
to engage
in
business
unless
given
approval
by the
Immigration
and
Naturalization
Service
(INS).
This
should be
noted on
the
student's
copy of
Immigration
Form
I-20, or
Form
I-688B,
Employment
Authorization
Document.
Off-campus
work due
to severe
economic
necessity
or for
optional
practical
training
is
considered
by the
IRS to
qualify
for the
exemption.
The IRS
does not
consider
other
off-campus
work
performed
by a
nonresident
alien
student to
be performed
to carry
out the
purpose
of a
student
visa.
Resident
aliens,
as well
as
nonresident
aliens on
F-2, J-2,
M-2, Q-2
or any
other
types of
visas,
are not
exempt
from FICA
taxes as
nonresident
aliens.
However,
IRC
section
3121(b)(10)
provides
an
exemption
from FICA
for
services
performed
in the
employ of
a school,
college,
or
university,
if the
service
is
performed
by a
student
who is
enrolled
and
regularly
attending
classes
at that
school,
college
or
university.
Therefore,
international
students
who do
not
qualify
for the
exemption
for
nonresident
aliens
might be
exempt
under
this
provision.
On the
other
hand
(just to
add a bit
more to
the
confusion),
the law
allows
states to
provide
Social
Security
coverage
for
services
performed
by
students
for the
public
school
the
student
is
attending
under
agreements
established
with the
Social
Security
Administration.
If a
state has
exercised
its
option to
provide
for
coverage
of
student
services,
section
3121(b)(10)
of the
Code
provides
that
those
services
will not
qualify
for the
student
FICA
exception.
If you
wish to
read the
official
announcement
from the
IRS on
who might
qualify
for this
student
exemption,
here it
is in
Adobe
Acrobat
format:
Rev.
Proc.
98-16.
back to
top.
How to
Obtain a
Refund
If FICA
has been
withheld
from your
wages by
mistake
(look in
box 4 of
your
W-2), you
should
first ask
the
employer
who
withheld
the tax
for a
refund.
If the
employer
does not
grant a
refund, a
refund
can be
claimed
from the
IRS on
Form 843.
Follow
the
instructions
for
claiming
a refund
on
page 43
of
Publication
519. Both
Form 843
and
Publication
519 can
be
printed
from the
U.S.
Treasury's
Forms and
Publications site.
Note that
you must
attach a
copy of
Form W-2,
your
visa, INS
Form
I-94, INS
Form
I-538 (if
you have
one), and
a
statement
saying
"tax was
withheld
by
mistake
and my
employer
denied me
a
refund."
This form
is sent
in its
own
envelope
(separate
from your
tax
return)
to
Internal
Revenue
Service
Center,
Philadelphia,
PA 19255.
Totalization
Agreements
If you
are in
the
United
States
only
temporarily
for work
or study
and are
not
exempt
from
social
security
under one
of the
above
provisions,
your U.S.
social
security
contributions
may
provide
benefits
in your
home
country
under a "totalization
agreement"
that the
U.S. has
negotiated
with
several
other
countries.
For more
information
on
totalization
agreements
and the
countries
participating
go to the
Social
Security
Administration's
Office of
International
Programs
site.
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