@rtax1 wrote:
Hi Sorry to reask. She did internships with an employer outside of school. She was granted 1 course credit for doing this internship. I have asked several individuals and dint get a clear if she is exempt from FICA or not. What should we do? Please help.
The only way you could get the FICA refunded is either by convincing the internship employer to refund them, or by requesting a refund using form 843. If you can get a professional to offer a written opinion, that may help, or a professional can help with the forms, but ultimately it will turn on can you convince the employer, and if not, can you convince the IRS?
There is a general student exemption from FICA under section 3121. Off-campus work does not qualify, even if it is educational.
There is a specific exemption for F-1 students who are in the US less than 5 years. The rules for that are listed here.
https://www.irs.gov/individuals/international-taxpayers/foreign-student-liability-for-social-securit...
The employment would have to fit in the category of "Off-campus student employment allowed by USCIS" or "Practical Training student employment on or off campus".
Ask the employer first. If they refuse, you can file a form 843. This is not included in Turbotax, you will have to do it yourself or hire a professional. Pay attention to the "explanation." You will want to write a detailed explanation that includes a copy of the W-2, documentation of her F-1 status, copies of correspondence with the employer trying (and failing) to get a refund, and possibly a course transcript or other documents from the school showing this internship was for credit. Mail your documentation and the form to the IRS at the address on the instructions.
There is no way to get this tax refunded as part of your "regular" form 1040 tax return.
See also this blog post.
https://blog.myrawealth.com/insights/students-on-an-f1-visa-dont-have-to-pay-fica-taxes
