Who is exempt from social security and medicare withholding

This information is intended only for international students and scholars with income sources and level typical of students and scholars at Yale University. Although the information contained in this site has been reviewed carefully and should be adequate to assist most international students and scholars, it is not a substitute for advice obtained from the Internal Revenue Service (IRS) or a qualified tax accountant. If your visa status has changed in the past year, or you believe you have a complicated tax issue, please consult the IRS or a qualified tax accountant.

In addition, while the tax preparation software Sprintax is being provided to help you with your tax filing obligations, you are individually responsible for verifying that the correct information has been entered into the tax preparation software and included on all forms and/or other documents printed or derived from the tax preparation software, and ultimately responsible for any errors or omissions.

Social taxes (social security and Medicare, commonly referred to as "FICA") are imposed on payments for services such as wages. FICA requires that Social Security (12.4%) and Medicare (2.9%) "contributory" taxes be paid - one half (7.65%) by the employee and one half (7.65%) by the university - as a way of funding our governmental old age, survivors, disability and hospital insurance (OASDI) systems.

Nonresident alien students in F-1, J-1, M-1, or Q-1 status, who in accordance with U.S. immigration law, are complying with all of the terms of that status, are exempt from FICA, even at times when other students may not be exempt. Once a nonresident alien student becomes a resident alien, however, such student may then fall under the student exemption described below. Remember the GW Tax Department must receive all forms for residency determination before an exemption from FICA taxes based on immigration status will be allowed. Nonresident students on visa types other than F-1, J-1, M-1, or Q-1 are subject to the same rules as are U.S. citizen/resident students.

International students who are required to pay FICA taxes may not always be paying into the U.S. system for naught. Some countries have agreements with the U.S. that will enable you, even if returning to your home country after graduation, to receive U.S. retirement benefits based on the "contributions" that you made while working in the U.S. To see if your country currently has such a social security agreement (called Totalization Agreements), visit or call a Social Security Administration (SSA) office.

Student FICA Exemption

An exception in the wage and employment laws permits the salaries of GW students working for GW and enrolled and regularly attending classes at the university to be exempted from such taxes. Current regulations further require that the student's primary activity be that of a student rather than that of an employee who is also taking classes. IRS administrative rulings have helped to set national standards that are currently followed by most universities.

In accordance with these accepted standards, in order to be eligible for exception from FICA tax, the university requires that:

1. you must be a GW student;
2. you must be taking a course load equal to at least one-half of a full-time workload for their respective school as defined by the Office of the Registrar; and
3. you must be employed by GW.

A review of your status is performed at the beginning of each semester.

Additionally, students in their final semester of studies who have fallen below the full-time standard and Master's or Doctoral Students who have finished their coursework but who are still officially enrolled in their program and under supervision of a faculty advisor will need to send to the Payroll Services a signed request for continued FICA exemption. They will need to include documentation from the Office of the Registrar, from their department, or from their advisor indicating the reason why they are below the appropriate half time credit hour limits and/or certifying to half-time student status. Certain graduate students should find the Request for Certification for Half-Time/Full-time Student Status appropriate for this purpose.

Nonresident Alien Students Only

F-1 and J-1 students are considered nonresident alien (NRA) for tax purposes during the first 5 calendar years they are present in the U.S. NRA students are not subject to Social Security/Medicare tax withholding while working on campus or while working for off-campus employers under Optional Practical Training (OPT) or Curricular Practical Training (CPT).

Section 3121(b)(19) of the U.S. Internal Revenue Code (IRC) specifies criteria by which an international student may be exempt from Social Security/Medicare taxes:

1. Individual must a nonresident alien for tax purposes;
2. Individual must be present in the U.S. under F, J, M, or Q visa; and
3. Individual must be performing services in accordance with the primary purpose of the visa’s issuance.

Occasionally off-campus employers of international students on OPT/CPT are unfamiliar with this IRC section and withhold Social Security/Medicare tax in error. International students should follow this guide and work with their off-campus employer to have their portion of Social Security/Medicare tax refunded.

Step 1: Request Refund from Employer

You must contact the employer who withheld the Social Security/Medicare tax for assistance. Inform your employer of the Social Security/Medicare exemption for nonresident alien students working on OPT or CPT, and ask the employer to issue a refund of your Social Security/Medicare tax.

If this request is successful, you may stop here. If the employer is unwilling to provide a refund then proceed to Step 2.

Step 2: If the Employer Is Unwilling to Provide a Refund

Please note instructions are provided for illustrative purposes. Always consult the form instructions for the most up-to-date information.

1. Complete Form 843, Claim for Refund and Request for Abatement
2. Attach the following items to Form 843:
   1. A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld.
   2. A copy of your visa.
   3. Form I-94 (or other documentation showing your dates of arrival or departure).
   4. If you have an F-1 visa, Form I-20
   5. If you have a J-1 visa, Form DS-2019.
   6. If you are engaged in optional practical training or employment due to severe economic necessity, Form I-766 or Form I-688B.
   7. A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. If you cannot obtain this statement from your employer, you must provide this information on our own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund.
   8. If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt.
3. Make a copy of all these documents for your records.
4. Mail the completed Form 843 and Form 8316 with attached copies of the other documents specified above to the address in Pub 519 for nonresident aliens requesting refunds of social security or Medicare taxes withheld in error from pay that is not subject to these taxes.

This refund application is not a quick process and may take several months. Students should wait at least 60 days before attempting to contact the IRS to check the status of the refund request.