How to Claim Your FICA Tax Refund as an F1 Student (Step-by-Step Guide)

Every year, thousands of international students unknowingly lose hundreds—sometimes thousands—of dollars to incorrectly withheld FICA taxes. If you're an F1 student working on OPT, CPT, or even on-campus, and you see "Social Security" or "Medicare" deductions on your paycheck, you may be entitled to get that money back.

What Are FICA Taxes?

FICA stands for the Federal Insurance Contributions Act. It's the payroll tax that funds two major U.S. social programs:

Social Security (6.2%): Retirement and disability benefits

Medicare (1.45%): Health insurance for those 65 and older

Combined, FICA taxes take 7.65% of your wages. On a $50,000 salary, that's $3,825 per year.

Here's the problem: F1 students are generally exempt from FICA taxes during their first five calendar years in the U.S. - but many employers don't know this rule and withhold these taxes anyway.

The F1 FICA Exemption: Who Qualifies?

Under Internal Revenue Code Section 3121(b)(19), you're exempt from FICA taxes if:

You're a nonresident alien for tax purposes

You hold an F-1, J-1, M-1, or Q visa

You're performing services allowed by your visa status (on-campus work, CPT, OPT)

You've been in the U.S. for fewer than 5 calendar years

Important: The 5-Year Rule Uses Calendar Years

The IRS counts calendar years, not months. If you arrived in August 2021, that entire year counts as Year 1.

How to Check If FICA Was Withheld

Look at your W-2 form from your employer:

Box 4: Social Security tax withheld

Box 6: Medicare tax withheld

!W-2 Form FICA Boxes Example

If these boxes show any amount other than $0 and you qualify for the exemption, you're owed a refund.

Step-by-Step: How to Get Your FICA Refund

Step 1: Request a Refund From Your Employer First

The IRS requires you to attempt getting a refund from your employer before filing with them directly.

What to do:

Contact your employer's payroll or HR department

Explain that you're an F1 student exempt from FICA under IRC Section 3121(b)(19)

Provide copies of your passport with F1 visa stamp, Form I-20, I-94 arrival record, and EAD card if on OPT

Timeline: If your employer agrees, they should issue a corrected W-2 (W-2c) and refund the taxes.

Step 2: If Your Employer Refuses, File With the IRS

Many employers - especially large corporations - don't understand F1 tax exemptions and will refuse your request. In this case, file directly with the IRS.

Documents you'll need:

Form 843: Claim for Refund and Request for Abatement

Form 8316: Information Regarding Request for Refund of Social Security Tax

Copy of Form W-2: Showing the taxes withheld

Copy of passport with visa stamp

Copy of I-94 arrival/departure record

Copy of I-20 (or DS-2019 for J1)

How to Complete Form 843

Line 3: Amount of refund requested (total of Social Security + Medicare withheld)

Line 5a: Check box for "Employment"

Line 5b: Enter "Social Security and Medicare Tax (FICA)"

Line 7 (Explanation): Write: "I am a nonresident alien F1 student who was present in the United States for fewer than 5 calendar years. Under IRC Section 3121(b)(19), I am exempt from Social Security and Medicare taxes."

Where to Mail Your FICA Refund Request

Send Form 843, Form 8316, and all supporting documents to:

Internal Revenue Service

Austin, TX 73301-0215

How Long Does the FICA Refund Take?

The IRS typically processes FICA refund requests in 12-16 weeks.

To check status: Call the IRS Nonresident Alien Unit: 267-941-1000 (best time: 6:00 AM Eastern)

Common Mistakes to Avoid

Mistake 1: Not Filing Form 8843 Each Year

Form 8843 establishes your "exempt individual" status. If you haven't filed it consistently, the IRS may question your FICA exemption claim.

Mistake 2: Missing the 3-Year Deadline

You have 3 years from the date the tax was paid to claim a FICA refund. After that, your claim is time-barred.

Mistake 3: Confusing FICA Refund With Income Tax Refund

A FICA refund is completely separate from your income tax refund. You can receive both. Filing your 1040-NR does not automatically get your FICA back - you must file Form 843 separately.

Does This Apply to OPT and STEM OPT?

Yes. The FICA exemption applies to all F1-authorized employment, including on-campus employment, CPT, OPT, and STEM OPT Extension.

What Happens After 5 Years?

Once you've been in the U.S. for more than 5 calendar years, you become a "resident alien" for tax purposes and typically lose the FICA exemption - with one exception:

The Student FICA Exemption: Under IRC Section 3121(b)(10), if you're enrolled at least half-time at a school and work for that institution, you may still be exempt from FICA regardless of how long you've been in the U.S.