Who is exempt from FICA tax?

International students, scholars, professors, teachers, trainees, researchers, physicians, au pairs, summer camp workers, and other aliens temporarily present in the United States in F-1,J-1,M-1, or Q-1/Q-2 nonimmigrant status are exempt from FICA taxes on wages as long as such services are allowed by USCIS.

What taxes are F-1 students exempt from?

As an F-1 visa holder, you are exempt from FICA (Social Security and Medicare) taxes. This means that no matter whether you are doing OPT, OPT extension or CPT (Curricular Practical Training), you are exempt from paying Social Security and Medicare taxes unless you’ve been in the United States for more than 5 years.

What income is exempt from FICA?

Under the FICA tax provisions, in 2020, you pay the Social Security portion on earnings of less than $137,700. The Internal Revenue Service notes that any income that you earn over this amount will be exempt from contributions to the Social Security fund.

What are the exemptions in the FICA tax?

Qualified reimbursements exempt from FICA taxes may include costs for meals, entertainment, cell phone, Internet, tools, supplies, client meetings, vehicle usage and certifications and training. Certain employees and workers are excluded from FICA Tax.

Are high school students exempt from FICA tax?

Students are not automatically exempt from having to pay taxes. Your earnings are subject to both federal and state income taxes. However, certain student workers will be exempt from Social Security tax and Medicare tax (FICA taxes) withholding.

What wages are exempt from FICA?

According to the Social Security Administration, income from sources other than work is exempt from FICA taxes. Dividends paid on stocks, interest from savings accounts or investments, capital gains, pensions and annuities all are exempt.

Is FICA a required deduction?

The Federal Insurance Contributions Act, otherwise known as FICA, is a mandatory federal payroll tax that employees can expect to be deducted from each paycheck. FICA taxes go towards providing benefits for current Social Security and Medicare recipients.