My question is will F1 visa holder be eligible for fica tax exemption if the they file married jointly filing? The H1b holder is already US resident for tax purpose and spouse is in F1 visa. Spouse earned income in 2023 through internships by in the field which she is graduating in. She earned 1 credit for doing this internship and was optional by school.
I am assuming through us filing joint return I automatically treated her as US resident and her fica exemption does not get covered through below clause from IRS.
Am I interpreting situation correctly that she cannot get refund of FICA?
IRS website states:
- F-visas, J-visas, M-visas, Q-visas. Nonresident alien students, scholars, professors, teachers, trainees, researchers, and other aliens temporarily present in the United States in F-1,J-1,M-1, or Q-1 nonimmigrant status are exempt from Social Security / Medicare Taxes on wages paid to them for services performed within the United States as long as such services are allowed by the United States Citizenship and Immigration Services (USCIS) for these nonimmigrant statuses, and such services are performed to carry out the purposes for which they were admitted into the United States.
- Exempt Employment includes:
- On-campus student employment up to 20 hours a week (40 hours during summer vacations)
- Off-campus student employment allowed by USCIS
- Practical Training student employment on or off campus
- On-campus employment as professor, teacher or researcher
- Limitations on exemption:
- The exemption does not apply to spouses and children in F-2, J-2, or M-2 nonimmigrant status.
- The exemption does not apply to employment not allowed by USCIS or to employment not closely connected to the purpose for which they were admitted into the United States.
- The exemption does not apply to nonimmigrants in F-1, J-1, M-1, or Q-1 status who change nonimmigrant status to a status which is not exempt or to a special protected status.
- The exemption does not apply to nonimmigrants in F-1, J-1, M-1, or Q-1 status who become resident aliens for tax purposes.
