💵 OPT FICA Refund Guide — How F-1 Students Can Recover Incorrect Social Security & Medicare Taxes (2025)
If you’re working on OPT and notice Social Security (6.2%) and Medicare (1.45%) taxes missing from your paycheck, you are not alone.
Thousands of international students are incorrectly charged these taxes every year, even though most F-1 students remain exempt from FICA under federal law.
- 1️⃣ Why OPT Students Are Generally Exempt From FICA Taxes
- 2️⃣ 2025 Eligibility Rules for FICA Exemption
- 3️⃣ How to Get Your FICA Refund — Two-Step Process
- 4️⃣ What to Do When Your Employer Refuses the Refund
- 📘 Example — Real-World Refund Calculation
- 📎 Internal & External Links
- 🔑 Final Thoughts & EA Guidance
1️⃣ Why OPT Students Are Generally Exempt From FICA Taxes
Under U.S. tax law (IRC §3121(b)(19)), individuals in F-1, J-1, or M-1 student status are exempt from Social Security and Medicare taxes as long as they remain Nonresident Aliens (NRA) for tax purposes.
This means that even while working on OPT, most students legally do not owe FICA taxes.
Despite this, payroll departments frequently withhold FICA because they assume OPT employees are treated like regular U.S. workers.
Fortunately, the IRS allows OPT students to reclaim 100% of incorrectly withheld FICA taxes.
– F-1 students classified as NRA are exempt from FICA
– Incorrectly withheld FICA is fully refundable
– Exemption is based on IRS law — not employer preference
2️⃣ 2025 Eligibility Rules for FICA Exemption
To qualify for FICA exemption while on OPT, the student must:
- Maintain valid F-1 status
- Not pass the Substantial Presence Test (SPT) → meaning classified as NRA
- Work within the scope of F-1 authorization (on-campus job, OPT, STEM OPT)
The majority of F-1 students remain NRA during the first five calendar years in the U.S., making them exempt from FICA during OPT.
F-1 students do not count days of presence for the first five years, which means most OPT workers remain Nonresident Aliens for tax purposes. As long as you are still NRA, FICA does not apply.
3️⃣ How to Get Your FICA Refund — Two-Step Process
Step 1: Request the refund directly from your employer
The IRS requires employers to handle FICA corrections when possible. Contact your HR or Payroll team and provide the following:
- Passport + Visa copy
- I-20
- I-94 record
- EAD card (OPT / STEM OPT)
- A brief written statement confirming your NRA tax status
Employers typically return the tax in your next paycheck or issue a separate reimbursement check.
Step 2: Employer files corrected payroll forms (Form 941-X)
To legally issue a refund, the employer must amend their payroll tax filing using Form 941-X. This process is routine and usually takes 4–8 weeks.
It is common for HR to mistakenly tell students that FICA is required on OPT.
Show them the IRS rule: “IRC §3121(b)(19)” and the IRS Foreign Students page if necessary.
4️⃣ When Your Employer Refuses the Refund — IRS Direct Filing
If your employer refuses to refund the tax or claims the system cannot adjust it, you may request a refund directly from the IRS.
Required documents:
- Form 843 — Claim for Refund
- Form 8316 — Statement confirming employer refusal
- Recent pay stubs
- I-20, I-94, EAD copies
- Form W-2 (if available)
IRS reviews typically take 3–6 months. Refunds are sent via check.
The IRS prefers that employers handle FICA corrections.
Only file Form 843 after documenting your attempt to get the refund through payroll.
📘 Example — Real-World Refund Calculation
Monthly salary: $4,800
Incorrect FICA withheld:
– Social Security (6.2%): $297.60
– Medicare (1.45%): $69.60
Total monthly refund: $367.20
If withheld for six months → $2,203.20 total refund
📎 Internal & External Links
🔑 Final Thoughts & EA Guidance
Most OPT employees should not be paying FICA taxes. If Social Security or Medicare was deducted from your paycheck, the mistake is correctable — and the refund is legally required.
Start with your employer, and if necessary, file directly with the IRS using Form 843.
FICA errors are common but easily fixable.
Keep copies of all communication with your employer and document your NRA status clearly to ensure a smooth refund process.
핑백: Form 1040-NR Explained
핑백: What Is CPT? A Complete 2025 Guide for International Students