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    saurontx's Avatar
    saurontx Posts: 3, Reputation: 1
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    #1

    Feb 13, 2009, 09:32 AM
    F-1 Student query regarding FICA taxes
    Hi

    I am foreign student, who entered US in dec 2004. I am currently working in MI on a CPT for completion of my phd. For the year 2008 (when my CPT began), I was taxed for FICA by my employer, for which I got deduction, citing the IRS regulations that F-1 students are exempt for such taxes for 1st 5 yrs. All fine...

    My first paycheck for 2009, Jan, came with FICA taxes withheld this time. My question is, for the year 2009, am I still FICA exempt ? IRS would count 2004 as my 1st year, making 2008 as my 5th year. Though I am still holding a valid visa (valid till dec 2009), can I ask for FICA exemption ?

    Any help would be greatly appreciated :)
    saurontx's Avatar
    saurontx Posts: 3, Reputation: 1
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    #2

    Feb 13, 2009, 10:53 AM
    Quote Originally Posted by saurontx View Post
    Hi

    I am foreign student, who entered US in dec 2004. I am currently working in MI on a CPT for completion of my phd. For the year 2008 (when my CPT began), I was taxed for FICA by my employer, for which I got deduction, citing the IRS regulations that F-1 students are exempt for such taxes for 1st 5 yrs. All fine...

    My first paycheck for 2009, Jan, came with FICA taxes withheld this time. My question is, for the year 2009, am I still FICA exempt ? IRS would count 2004 as my 1st year, making 2008 as my 5th year. Though I am still holding a valid visa (valid till dec 2009), can I ask for FICA exemption ?

    Any help would be greatly appreciated :)
    I would also like to add here that for the current semester, i.e. Spring 2009 (and till I graduate, sometime in summer 2009), I will be registered as a full time student. I believe that FICA taxes are exempt from students regardless of their resident/non-resident status if they are registered for classes.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Feb 13, 2009, 11:01 AM

    2004 is counted as full year.
    For 2009 you are not exempt from residency. You will pay FICA taxes.
    saurontx's Avatar
    saurontx Posts: 3, Reputation: 1
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    #4

    Feb 13, 2009, 11:13 AM
    Quote Originally Posted by MukatA View Post
    2004 is counted as full year.
    For 2009 you are not exempt from residency. You will pay FICA taxes.
    ... even if I maintain a full time registration at my University ?

    I found this note in a form which I filled to my employer (Umich) for FICA exempt. It says "A student is exempt from FICA during any term in which he or she is registered for classes at half-time or greater, regardless of resident or non-resident status. FICA must be withheld in any term the resident alien student is not registered for classes, suchas during the summer months."

    Does this help ? I am asking becoz some of my friends at other universities, who entered US in 2004 too, are not being deducted for FICA, even though their 5 yr exempt ended in 2008 as mine.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #5

    Mar 3, 2009, 04:23 PM
    The FICA exemption for students who work for the university ON university property applies to ALL students, not just international students.

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