Student Exception to FICA Tax

[JorgeB]

I am a graduate student who works part-time on campus. The work I do qualifies me for the FICA exemption. How does TurboTax handle such exemptions? Once I file, and because I did not pay any FICA taxes, will TurboTax think I owe FICA taxes, since I did not pay any FICA taxes and my employer did not withhold FICA taxes?

[IsabellaG · Accepted solution]

No, TurboTax will not compute FICA taxes. FICA (Social Security and Medicare) taxes do not apply to service performed by students employed by a school, college or university where the student is pursuing a course of study.  Your W-2 from the college would show your wages in Box 1, and would have zero in Box 3. You can report your income this way.

[IsabellaG]

It is taxable. It's just not subject to FICA tax.

[IsabellaG]

You are paying more money when you add the W-2 because the amount in box 1 gets added to all your other income and the tax is computed on that. Then all of your withholding is subtracted. Multiple W-2s often  result in more tax. Withholding is somewhat inexact when income from several sources is involved. Her wages are taxable, just not for Social Security. <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2273878-why-did-my-refund-drop-when-i-entered-another-w-2">https:/...>