As an F1 visa holder studying in the US, you may be able to get some of your hard-earned money back if you’ve noticed that FICA taxes have been deducted from your paycheck. According to IRS regulations, most students on F1 visas are not required to pay FICA taxes while they are nonresident aliens. However, mistakes do happen, and employers could unintentionally withhold these taxes.

Learn the ins and outs of getting your FICA taxes back, including who can get a refund, why they could have been withheld, and how to do it all in this detailed guide.

What are FICA Taxes?

The acronym FICA stands for the Federal Insurance Contributions Act. It includes:

• 6.2% Medicare Deduction

• A Medicare Tax of 1.45%

Companies contribute equally and take these taxes out of employees’ salaries. Federal Insurance Contributions Act (FICA) levies help fund Medicare and Social Security in the US.

Are FICA Taxes Not Required of Students on F1 Visas?

Most students on F1 visas are not required to pay FICA taxes as long as they are considered nonresident aliens. According to the IRS:

• For their first five calendar years in the United States, they are taxed as nonresidents.

• They are exempt from paying FICA taxes if they work in a recognized occupation, such as:

  • Jobs on campus

  • Curriculum-Based Practical Training (CPT)

  • Optional Practical Training (OPT)

After five years on F1, many students become resident aliens for tax reasons; in this case, they are subject to FICA taxes.

Why Were FICA Taxes Incorporated Into My Paycheck?

There are a lot of reasons why your employer could have deducted FICA taxes:

• Your F1 visa was unknown to the employer.

• It seems that your I-20, visa, and Social Security number were not submitted properly.

• You undergo a change in your tax status when you become a resident alien.

• Someone in the payroll or human resources department made a mistake.

When you feel that your FICA taxes were withheld incorrectly, you have the option to seek a refund from either the IRS or your employer.

In Detail: Methods for Refunding FICA Taxes

Step 1: See Whether You Are Eligible for the FICA Exemption

Apply these guidelines:

• With an F1 visa for less than five years

• Completed tasks that were authorized (whether on campus, at CPT, or off)

• Had their taxes prepared using Form 1040-NR, which is often used by nonresident aliens

You are exempt from paying FICA taxes if you meet these requirements.

Step 2: Review Your Pay Stubs or W-2 Forms

In order to ensure that FICA is being withheld:

• Check your pay stubs for any deductions labeled “Medicare,” “SS,” or “FICA”

• Or check your W-2 (Medicare Box 6 and Social Security Box 4)

It’s time to submit a refund request if the amounts in those boxes correspond to your exemption status.

Step 3: Submit a Refund Request to Your Company

You should inquire about the FICA refund from your employer before going straight to the IRS. The next step is this:

Notify payroll or human resources of your nonresident status and F1 visa. Proceed with:

• Two copies of your I-20

• A copy of your visa

• Your Form I-94 in its entirety

• Your W-2 and pay stubs

• Income Tax Publication 519, detailing the F1 student exemption, in its entirety

Nicely ask for your FICA tax refund for the amounts that were withheld. Payroll is a great way for many organizations to refund the money.

Step 4: File with the IRS if Your Employer is Unwilling to Comply

If your employer does not want to or is unable to pay your FICA refund, you may file a direct claim with the IRS.

Things Needed:

• Request for Abatement and Refund (Form 843) — used to get a reimbursement from FICA

• Request for a Refund of Social Security Taxes—Form 8316 — describes how your boss is not going to compensate you

• A W-2 form showing the amount of FICA taxes deducted

• Income tax stubs (optional but helpful)

• Forms I-20, I-94, and F1 visa copies

• An official passport photo

• A formal letter explaining your situation and your F1 status

• Your nonresident status is confirmed by an excerpt from IRS Notice 519

Instructions for Completing Form 843:

• On Line 1, indicate the year in which taxes were withheld

• The amount of Social Security and Medicare taxes that were deducted may be seen on Line 3

• Explain on Line 5:

  “According to IRS regulations, I am an F1 visa student and am therefore exempt from FICA taxes. It seems that my employer made a mistake and withheld these taxes.”

Include all relevant documents.

Postal Code:
Submit your package to the IRS:
Form 84201-0038, Internal Revenue Service, Treasury Department, Ogden, Utah
(Ensure the address is correct by checking the IRS website before submitting.)

Step 5: Wait for the IRS to Proceed

It may take 8 to 16 weeks (or more) for IRS processing.

If they approve your return, you will get a refund check from the IRS for the FICA amounts.

When Can I Get My FICA Money Back?

Refund claims must be submitted within two years of either the date of payment or the date of filing of tax returns, whichever is earlier.

So, if you had FICA withheld in 2022 and filed your return in 2023, you likely have until 2026 to get your refund.

Future FICA Withholding Prevention Strategies

• Make sure you explain your visa status when you get a job

• Submit any immigration paperwork to HR expeditiously

• Get your first paycheck reviewed

• Check your residency status with the IRS every year

• Keep a duplicate of your W-2 and pay stubs, as well as any other relevant employment documents

The Most Common Mistakes Taxpayers Make

• Filing the wrong form (Form 843, not 1040-X)

• Overlooking supporting documents in your first submission

• No formal guarantee from your employer that they will not give you a refund

• Excessive delay causes the IRS deadline to pass

Formula One Students’ Frequently Asked Questions About FICA Refunds

Is it possible to get a FICA refund while working part-time?
Sure, as long as your employment complies with F1 laws and you don’t end up becoming a permanent resident.

Must a tax preparer be used while completing Form 843?
On occasion, yes. Because it is so easy, many students are able to complete it themselves.

Does it matter whether I filed my taxes previously if I still get this refund?
I completely agree. Your income tax return does not include a claim for a FICA refund.

Can OPT avoid paying FICA taxes?
I completely agree. Completed work under Optional Practical Training is free from taxes if you are a nonresident immigrant.

In Conclusion

It is common for payroll errors to result in wrongful withholding of FICA payments, adding to the mountain of paperwork and restrictions that come with having an F1 visa in the US. Assuming you file your taxes by the due date and meet all IRS requirements, you may be able to have your Social Security and Medicare taxes reimbursed by your employer or the Internal Revenue Service.

If you put in the time and effort and follow the steps to the letter, you will be able to get your money back and find out what your rights are as an international student.