Nonresident aliens on F-1, J-1, M-1 or Q-1 visas are not subject to social security and Medicare taxes (FICA) if services are performed to carry out the purpose for which they are admitted to the United States [IRC §3121(b)(19)]. A nonresident alien admitted to the U.S. as a student is not permitted to work off campus for a wage or to engage in business unless given approval by the INS. This should be noted on the student's copy of Immigration Form I-20, Certificate of Eligibility for Nonimmigrant Student Status, or Form I-688B, Employment Authorization Document.

Resident aliens, as well as nonresident aliens on F-2, J-2, M-2, Q-2 or any other types of visas, are not exempt from FICA as nonresident aliens. However, IRC section 3121(b)(10) provides an exemption from FICA for services performed in the employ of a school, college, or university, if the service is performed by a student who is enrolled and regularly attending classes at that school, college or university. Therefore, international students who do not qualify for the exemption for nonresident aliens might be exempt under this provision. On the other hand (just to add a bit more to the confusion), the law allows states to provide Social Security coverage for services performed by students for the public school the student is attending under agreements established with the Social Security Administration. If a state has exercised its option to provide for coverage of student services, section 3121(b)(10) of the Code provides that those services will not qualify for the student FICA

If FICA has been withheld from your wages by mistake (look in box 4 of your W-2), you should first ask the employer who withheld the tax for a refund. If the employer does not grant a refund, a refund can be claimed from the IRS on Form 843. Follow the instructions for claiming a refund on page 39 of Publication 519. Both Form 843 and Publication 519 can be printed from the U.S. Treasury's Forms and Publications site. Note that you must attach a copy of Form W-2, your visa, INS Form I-94, INS Form I-538 (if you have one), and a statement saying "tax was withheld by mistake and my employer denied me a refund." This form is sent in its own envelope (separate from your tax return) to Internal Revenue Service Center, Philadelphia, PA 19255.

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