Topic Summary
The following foreign student and scholar nonresident aliens are usually exempt from Social Security and Medicare taxes:
- Students, scholars, teachers, researchers, and trainees (including medical interns) who are temporarily present in the U.S. in F-1, J-1, M-1, or Q-1 immigration status
- Any period in which a foreign student is in "practical training" or other off-campus employment allowed by the USCIS
- On-campus work and approved economic hardship employment
- Any student who is enrolled and regularly attending classes at a college or university on pay earned from that school
Similarly, the self-employment income of nonresident aliens is exempt from self-employment tax. The exemption is lost if an alien becomes a resident.
If an employer withholds Social Security and Medicare taxes from pay that is not subject to taxes, follow these steps:
- Contact that employer for reimbursement
- If the employer does not refund the withheld taxes, file a refund claim on Form 843 with attachments and mail to Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038
However, the completion of Form 843 and corresponding Form(s) 8316 is Out of Scope for the VITA/TCE Foreign Student and Scholar program.
For additional information, refer to Publication 519, U.S. Tax Guide for Aliens, and Form 8316.
