If wife is NRA by default, but treated as resident by election (MFJ) then does she have to pay FICA ?

[Engineer101]

If wife is NRA by default, but treated as resident by election (MFJ) under Nonresident Spouse Treated
as a Resident rule, then does she have to pay FICA for that tax year and future years for when the choice is selected?

[pk]

@Engineer101  generally FICA contribution has nothing to do with immigration/tax status.  For a more specific answer  to your case please answer  at least the following:

(a) Are you yourself  a US person ( citizen/GreenCard/Resident for tax purposes )? 

(b) If you are a work visa holder then which visa ?  When did you enter the USA?

(c) About your spouse  -- which  visa?  When did she enter the USA?  Which country is she from ?  Are you from the same country ( if you are not a citizen/GreenCard )?

(d) If the spouse is a student ( i.e.   not on "dependent" visa)  such F, Q, M , J etc.  visa , then when did she enter the USA ?  Was this her first entry within the last three years ?

(e) Is spouse on EAD  and if so when did this start ?

I will circle back once I hear from you --yes ?

[Engineer101]

@pk 

(a) Are you yourself a US person ( citizen/GreenCard/Resident for tax purposes )

Resident for tax purposes

(b) If you are a work visa holder then which visa ? When did you enter the USA?   Current visa is H-1B and Recent entry is Feb 2023

(c) About your spouse -- which visa? When did she enter the USA? Which country is she from ? Are you from the same country ( if you are not a citizen/GreenCard )? F-1 since Dec 2022. Both of us are from India

(d) If the spouse is a student ( i.e. not on "dependent" visa) such F, Q, M , J etc. visa , then when did she enter the USA ? Was this her first entry within the last three years ? Recent entry Dec 2024. Not a first entry she has travelled a few times before thus

(e) Is spouse on EAD and if so when did this start ? OPT EAD since May 2024 and now in STEM OPT EAD

[pk]

@Engineer101  Namaste  Engineer ji

Thankyou for responding to my questions.

Since your spouse is on a non-dependent visa ( F-1) and assuming that she has not yet completed the five year ( usual)  exempt status, she is NRA.  Thus when you  jointly ask for her to be treated as a resident ( for the benefit of being able to use MFJ standard deduction ), her world income becomes taxable to the US.  This probably is no burden since her income is probably only from OPT/EAD.

Generally  earnings  during student  training (/ inclu. residency for med. grads) etc. is immune from FICA .

Her deciding/ requesting to be treated as a  tax resident does not change her "training" / student status.  However, if she gives up her F visa and changes to a dependent visa like H-2/4 etc. she will be no longer immune  from FICA contribution.

My ref is -->  Student FICA exception | Internal Revenue Service

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

Namaste ji