[Individual]Social Security and Medicare Taxes for Aliens (Jan-19-2011, 89 days)

In most cases, Social Security Tax is levied on the first 160,800 taxable wages. All taxable wages are subject to Medicare tax. We may know term "FICA". It's the combination of Social Security tax and Medicare tax.

Usually employer deducts these taxes from each wage payment. You can claim a credit for excess social security tax on your income tax return if the total amount deducted is more than 6,621.60 by using Form 843. However, there are some special rules applied to the specific group of people.

Tax Treaty

Not covered by FICA	Covered by FICA
Students and Exchange Visitors (F, J, M, Q) claim as nonresident alien (income sources :on-campus work, practical training, and economic hardship employment )	Spouse or minor child of nonimmigrant aliens (F-2, J-2, M-2, Q-3) Students claim as resident alien (unless they are under the " Student FICA exemption" discussed below )

Tip 1: Usually, the exemption applies to :

• F-1 and J-1 Student Visa holders for the first 5 calendar years*

• J-1 Scholars (including teachers, professors, researcher, and alien physicians ) for the first 2 calendar years*.

Tip 2: Definition of Calendar Year

No matter when you entry U.S., it is counted as a full calendar year when you determining the exemption for FICA withholding. For example, you entered U.S. at December-1-2008, it is counted as 1 calendar year.

Student FICA Exemption

If you are students and claim as resident alien, you may also exempt from FICA. You should bear in mind that IRS also provides an exemption from FICA for all students, American and foreign. This is so -called "student FICA exemption".

Refund of Taxes Withheld in Error

You can fill out the Form 843 to file a refund for over-withholding part. Please attach the following items to Form 843:

• Copy of Form W-2

• Copy of your visa

• Form I-94

• Form I-20, if F-1 visa

• Form DS-2019, if J-1 visa

• Form I-766 or Form I-688B, if you are engaged in optional practical training

• Statement from your employer (indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer claim). Or your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund.

• Statement indicating the tax paid during the period you were exempt, if you were exempt from FICA only part of the year.

PSQ

Sources: http://www.irs.gov