Am I exempt from FICA tax as a nonresident alien on F-1 status. I have previously held F-1 status for undergrad but have changed under a masters degree? Thank you.

[borislav12]

My employer says that I meet the substantial prescense test of 5 years but I believe that is incorrect as I am on a new visa since 2023.

[pk]

@borislav12 , generally the five year exempt status  lasts for five calendar years from the  first entry with F-1 --once in a life time.  So if you came back with a new F-1, you may have exhausted your  exempt status.    Please provide  dates when you first entered with F-1 and your second entry / renewal of F-1 dates.

FICA  regs have nothing to do with the F-1 exempt status  and/or  whether you have passed the SPT.  It is based on whether you are a student/ trainee and are performing   education related  work with EAD as a trainee and not an employee.

Does that make sense ?   Is there more I can do for you ?

[borislav12]

First date is sep 2018, second is jan 2023. All of the friends that I have who are international and in the same position so not pay FICA tax. There was a period when I was not physically in the US between the two visas so I don’t know if that counts. Thank you.

[borislav12]

Would I be able to just reclaim them at the end of the tax year?

[pk]

@borislav12  based on your answer ,    you are no-longer an exempt  ( from counting days present towards SPT) person.   However  as I said earlier  FICA  requirement  is not directly affected by  your  immigration status.  

Here is an opinion from the IRS on the subject of FICA exemption -->

Student FICA Exception | Internal Revenue Service (irs.gov)

 Also there may be Tax Treaty  conditions that apply --- which country are you from?

The return of FICA  taxes collected  rests with your employer -- but is not generally preferrable.

[borislav12]

Thank you for sending over the IRS Guidance. I am from Bulgaria. Would you be able to provide more clarity on the following :  However  as I said earlier  FICA  requirement  is not directly affected by  your  immigration status. Thanks!

[pk]

@borislav12  if the job you are performing is NOT as a professional employee  ( see the list of benefits  that a professional employee gets ) and is generally considered as a trainee  and in furtherance of your education,  , you are generally exempt from FICA even if you are a resident for tax  purposes or even a citizen of the USA. Thus under some circumstances ,  medical students  as a "resident" may  be exempt  from FICA because it is a required training and is part of their education.

Does this make sense ?

pk