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

[Engineer101]

Are you a CPA licensed in USA and in MI? Can you help me file tax returns?

We did not oay FICa for wife in 2023 for her internship and in 2024 for her job. My previous COA told my spouse to start paying FICA from early months of 2025 as they said we must pay FICA taxes and are cannot have both ways of trwting wife as resident and not paying FICA taxes. We potentially lose out on close to 4k due to this. We did not file form 8843 for wife for 2023 and 2024 tax returns. What should we do now?

[pk]

@Engineer101 , Namaste ji

I am not sure that I understand your issue fully ( because I had already  mentioned above that  FICA requirement has nothing to do with tax residency) nor do I understand the  comment about  COA's ( what is a COA ? ) opinion.  I have you the ref. on which my opinion rests.  Thus I am very confused.

AS you are probably aware ( and unlike in India ) a tax professional does not need to be a CPA or a tax attorney or EA.   Many states have their  own means of certifying / controlling whom gets to be a tax professional ( including IRS' own regime ).   Methinks you should consider sending me PM ( just NO PII --- Personally Identifiable Information) with details of your situation. 

While I am a volunteer here at TurboTax, generally dealing with international taxation / tax treaties etc., I was a tax professional licensed in California  for more than a decade and lived in MI for 25 years  and volunteered for the  US Treasury for three years.  This is just to let you know that I am familiar with  tax laws  ( US, CA and MI ) and  as in the past, do abide by the dictates/requirements of circular 230 ( IRS).

Please consider sending me PM  ( note 2025 is about to end ) and perhaps time is of the essence.

Namaste ji

pk