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saurontx · Feb 13, 2009, 09:32 AM

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 · Feb 13, 2009, 10:53 AM

Originally Posted by saurontx

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 · 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 · Feb 13, 2009, 11:13 AM

Originally Posted by MukatA

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 · 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.