FICA Tax Preparation & Refunds
Assistance for visa holders (F1, OPT, J1, H1B) claiming exempt FICA (Social Security & Medicare) tax refunds and ensuring accurate employer withholdings.
Key Highlights & Scope of Service
Understanding the Federal Insurance Contributions Act (FICA)
The Federal Insurance Contributions Act (FICA) mandates a payroll tax consisting of 6.2% for Social Security and 1.45% for Medicare (totaling 7.65% deducted from employee pay and matched by employers).
While FICA is standard for U.S. citizens and permanent residents, foreign students, scholars, teachers, and researchers on non-immigrant visas (including F-1, OPT, CPT, J-1, M-1, and Q-1) who are classified as Non-Resident Aliens are EXEMPT from paying Social Security and Medicare taxes under Internal Revenue Code Section 3121(b)(19).
Why Employers Improperly Deduct FICA
Many corporate payroll departments are unfamiliar with non-resident alien tax exemptions and mistakenly withhold FICA taxes from students and scholars on OPT/CPT. Over a 12-month period, this often amounts to $3,000 to $8,000 in excess tax withheld from your salary.
How GVP Tax Consulting Recovers Your FICA Refund
1. Employer Resolution: We provide formal documentation and IRS citation letters for your employer's payroll team to issue an immediate direct refund.
2. Direct IRS Claim: If your employer is unable or unwilling to refund the amount, we prepare and submit IRS Form 843 (Claim for Refund and Request for Abatement) along with Form 8316 and supporting visa copies directly to the IRS.
3. Status Transition Consulting: We advise on the exact date your status transitions from non-resident to resident alien under the Substantial Presence Test.