FICA and Medicare Tax Withheld in Error For Persons in F-1 or J-1 Status
This information is only for individuals in F-1 or J-1 status who are considered nonresident for federal tax purposes. All residents and “residents for tax purposes” are required to pay a Social Security tax (FICA and Medicare), which totals nearly 8% of their earned income. “Nonresidents for tax purposes” are exempt from this tax.
Who Can File For A Social Security Refund?
You are not subject to Social Security tax withholding on your wages if:
- you have on-campus employment, or
- you are authorized for Curricular Practical Training (CPT) or Optional Practical Training (OPT), or
- you are authorized for employment due to Economic Hardship
If Your Employer has Withheld these Taxes in Error, Follow these Steps:
- Request a refund from your employer.
You must first request a refund of these taxes from your employer. If your employer is able to refund these taxes, no further action is necessary. For Yale-earned income, contact the International Tax Office.
- If necessary, request a statement from your employer.
If your employer is unable to refund these taxes, request a statement outlining their denial of your refund and file Forms 843 and 8316.
- If necessary, request a refund from the IRS.
If you are unable to receive a refund of these taxes from your employer, you may then file Form 843 and 8316 to request a refund from the IRS. Make sure to include the following:
- a completed 843 form (see IRS instructions)
- a completed 8316 form
- a copy of your W-2(s) that indicates the Social Security tax that was withheld in error
- a copy of the current visa page of your passport
- a copy of your I-94 record
- if applicable, a copy of your I-20 form that indicates CPT or OPT authorization
- if applicable, a copy of your EAD card authorizing OPT or Economic Hardship
- a written statement that you unsuccessfully requested a refund of these taxes from your employer (this can be the statement that you obtained from your employer, or your own statement that you were denied refund of these taxes and were unable to obtain a statement from them)
- Submit your forms to the IRS.
Print, sign and date form and mail these documents to Internal Revenue Service, Austin, TX 73301-0215. Do not include these documents with your federal income tax return!
- Keep copies!
Remember to keep copies of what you file each year (in case your return gets reviewed and there is a problem or if the IRS audits you in the future).
This information is intended only for international students and scholars who are nonresident tax filers 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.