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FICA tax reimbursement taxable?

Hi,

I'm a F1-OPT worker and as a nonresident alien, exempt from FICA taxes.

My new employer initially withheld FICA taxes and eventually reimbursed me for them.

The reimbursement was a retro pay and appears along with the rest of my wages in W2 box 1.

Because of that, I'm required to pay taxes on a reimbursement of taxes I'm exempt from.

 

Did my employer correctly reimburse me?

Can I deduct this reimbursement on 1040NR in some way?  (W2 doesn't include any information such as "FICA reimbursement" for this payment.)

 

Thank you

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1 Reply
ThomasM125
Employee Tax Expert

FICA tax reimbursement taxable?

I am not familiar with the 1040NR form since TurboTax does not support it. However, on a form 1040 there is a line item called "other income" on which you can enter a negative amount along with an explanation to reduce income reported when required.

 

I imagine you have a similar opportunity with the form 1040NR.

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