Exemption from FICA (Social Security & Medicare) Taxes for International Students

What you need to know

When you are an international student in the U.S. on a non-immigrant visa (such as F-1, J-1 or M-1) and you are considered a nonresident alien for U.S. tax purposes, you may qualify for an exemption from the payroll taxes known as FICA (the Social Security and Medicare taxes) on wages paid to you for services performed in the U.S. under certain conditions.

Here’s a breakdown of the key elements: status, how to avoid withholding, and what to do if taxes were withheld in error.

1. Determine Your Status and Eligibility

Nonresident alien status

• For tax purposes, a “nonresident alien” is an individual who has not met the Green Card Test and has not met the Substantial Presence Test.

• Students in F-1, J-1, or M-1 status are typically nonresident aliens during their first five calendar years in the U.S., if they remain in that status and do not meet the residency test.

• Note: For J-1 scholars/teachers/researchers (not students), the “exempt individual” period is two calendar years rather than five.

Exempt employment

• The exemption from FICA applies only if your employment is authorized by the U.S. Citizenship and Immigration Services (USCIS) under your visa status, and the services are performed to carry out the purposes for which your visa was issued.

• Acceptable employment may include:

  • On-campus student employment (for F-1/J-1) up to the allowed hours.

  • Off-campus employment authorized by USCIS (for example, CPT/OPT) if you are in student status.

• Important limitations:

  • Spouses and children in dependent statuses (F-2, J-2, M-2) are not eligible for the FICA exemption simply by virtue of the primary’s status.

  • If the employment is not permitted by your visa, or is not closely connected to your student/training purpose, the exemption does not apply.

  • If you change status (e.g., to H-1B) or become a tax resident alien, you lose the exemption.

Key catch: Is there a specific “exemption form”?

• There is no dedicated form you file in advance to alert the IRS to the exemption for FICA taxes. What matters is your status and the nature of the employment. The employer should stop withholding FICA taxes if you meet the conditions. If they don’t, you can request a refund.

• You may still need to file other tax-related forms (e.g., Form 8843) to claim your nonresident alien status and exclude days from the substantial presence test. More on that below.

2. Prevent FICA Withholding — What to Do

If you believe you qualify for the exemption, here are the practical steps to take:

• Inform your employer: Provide your payroll or HR office with documentation of your visa status (F-1, J-1, or M-1), your I-20 or DS-2019, I-94 arrival record, and any authorization for employment (CPT/OPT) if applicable.

• Explain the exemption: Some employers may not be aware of the IRS rules for non-resident aliens on student/trainee visas. Provide a copy or reference to the IRS page on “Foreign student liability for Social Security and Medicare taxes”.

• Monitor your paychecks and W-2: If FICA taxes (Social Security/Medicare) are still being withheld (you’ll see in Box 4 and Box 6 of Form W-2), you’ll need to act to get a refund.

3. If FICA Taxes Were Withheld — the Refund Process

If your employer does withhold FICA taxes incorrectly, you have two possible routes to get a refund:

Step 1: Ask your employer to refund

• First, approach your payroll department and request a refund of the withheld Social Security/Medicare taxes. Institutions often have procedures for international student situations.

• If the employer agrees and refunds the amount, you’re done.

Step 2: If the employer refuses (or cannot refund)

• You will need to file with the IRS using Form 843 (Claim for Refund and Request for Abatement) and also often Form 8316 (Information Regarding Request for Refund of Social Security Tax Erroneously Withheld) when required.

• Attach the following documents:

  • Your Form W-2 showing the amounts withheld for Social Security and Medicare.

  • Proof of your visa status, I-20/DS-2019, I-94 arrival/departure record, and employment authorization if applicable (CPT/OPT I-766 or other).

  • A statement from your employer (or your statement) indicating that the employer will not refund (if applicable).

  • If the exemption applied only for part of the year, pay statements covering the exempt period.

• Mail the completed form(s) and attachments to the appropriate IRS address. (Refer to IRS Publication 519: U.S. Tax Guide for Aliens)

• Keep copies of everything for your records.

4. Additional Key Considerations & Tips

• Counting calendar years: For F-1/J-1 student visas, the “five calendar years” rule means you count the calendar year of entry as your first year. A late-year entry still counts as one full calendar year for purposes of the exemption.

• Transition to tax resident status: Once you meet the Substantial Presence Test (or have a green card), you become a resident alien for tax purposes, and the FICA exemption no longer applies.

• The “student FICA exemption” vs. nonresident alien exemption: Separately, there is also an exemption for students (even resident aliens) employed by a school where they are a half-time student and employed by that same institution (IRC 3121(b)(10)).

• State/local payroll taxes: The FICA exemption is a federal payroll tax matter (Social Security & Medicare). It does not automatically mean you are exempt from federal income tax or state income tax.

• If employment is not allowed by the visa status: If you engage in unauthorized work (i.e., work not authorized by USCIS under your visa), the FICA exemption does not apply, and different (often higher-risk) tax consequences apply.

5. Why This Matters for International Students

For your audience of international students and universities:

• Employers may not be fully aware of the exemption rules for international students. Ensuring that it is properly applied can save students hundreds or thousands of dollars in payroll tax withholding.

• Institutions that host international students (or employers who hire them) should have clear processes to determine exempt vs. non-exempt status for FICA withholding.

• Mis-withheld FICA taxes may complicate student finances, budgeting, and may require extra work (filing Form 843) to recover.

• When coordinating CPT/OPT or other authorized working arrangements for international students, the FICA exemption is a valuable piece of the overall immigration-tax landscape that students should understand.

6. Summary — What to Remember

• Yes — most international students in F-1, J-1, or M-1 status who are nonresident aliens for tax purposes are exempt from FICA (Social Security & Medicare) taxes for wages paid for qualifying employment.

• There is no special form you file in advance with the IRS solely for the exemption; what you do is ensure your employer knows your status and stops withholding.

• If taxes were nevertheless withheld, you can request a refund from your employer or file Form 843 with the IRS.

• You must satisfy the conditions: still nonresident for tax purposes, visa status eligible (F-1, J-1, M-1), employment authorized, and linked to your visa purpose.

• Once you become a tax resident or change to a non-eligible visa status, the exemption ends.

Learn more about educational opportunities for international students on an F1 visa: https://www.howellmgmt.com/