In general aliens performing services in the United States (U.S.) as employees are liable for U.S. Social Security and Medicare taxes under the Federal Insurance Contribution Act (also known as FICA taxes). However, certain classes of alien employees are exempt from U.S. Social Security and Medicare taxes. Resident aliens, in general, have the same liability for Social Security/Medicare Taxes as U.S. Citizens. Nonresident aliens (NRAs), in general, are also liable for Social Security/Medicare Taxes on wages paid to them for services performed by them in the United States, with certain exceptions based on their nonimmigrant status. NRA teachers, researchers and other professionals under J-1 and Q-1 visa status Foreign scholars, professors, teachers, trainees, researchers, physicians, au pairs, summer camp workers, and other non-student aliens temporarily present in the United States in J-1, or Q-1 nonimmigrant status for less than 2 calendar years are generally NRAs under residency rules of IRC section 7701(b). These NRA teachers, researchers and scholars are exempt from Social Security Tax and Medicare Tax on wages paid to them for services performed within the U.S. To qualify for the exemption the services performed must be allowed by U.S. Citizenship and Immigration Services (USCIS) for these nonimmigrant statuses, and such services are performed to carry out the purposes for which such visas were issued to them. Exempt Employment includes: Employment as a professor, teacher or researcher. Employment as a physician, au pair, summer camp worker, or any other non-student category of exchange visitor. Limitations on exemption: The exemption does not apply to spouses and children in J-2 nonimmigrant status. The exemption does not apply to employment not allowed by USCIS or to employment not closely connected to the purpose for which the visa was issued. The exemption does not apply to J-1, or Q-1 nonimmigrants who change to an immigration status which is not exempt or to a special protected status. The exemption does not apply to J-1, or Q-1 nonimmigrants who become resident aliens. Totalization agreements The U.S. has entered into agreements with several nations called Totalization Agreements for the purpose of avoiding double taxation of income with respect to Social Security taxes. These agreements must be taken into account when determining whether any alien is subject to the U.S. Social Security and Medicare taxes. Family members of NRA teachers, foreign researchers, and other foreign professionals The Internal Revenue Service (IRS) has issued regulations which clearly stipulate that the spouses and dependents of NRA scholars, trainees, teachers, or researchers temporarily present in the United States in J-2 status are not exempt from Social Security and Medicare taxes, and are fully liable for Social Security/Medicare taxes on any wages they earn in the U.S. because such individuals have not entered the U.S. for the primary purpose of engaging in training, teaching, or research. However, if the individual in J-2 status is employed doing a type of work which is exempt from Social Security and Medicare taxes under the code, then the exemption still applies. For example, the wages paid to a J-2 teacher employed by a state university might be exempt from Social Security and Medicare taxes if the state has not elected Social Security and Medicare coverage for state employees under Section 218 of the Social Security Act. Change in status of foreign teachers, foreign researchers and other foreign professionals NRA scholars, trainees, teachers, or researchers in J-1 or Q-1 status who change to a nonimmigrant status other than J-1 or Q-1 will become liable for Social Security/Medicare taxes in most cases on the very day of the change of status. Teachers, trainees, and researchers in H-1b status, and alien nurses in H-1a or H-1c status, are liable for Social Security/Medicare taxes from the very first day of U.S. employment, regardless of whether they are nonresident or resident aliens, and regardless of whether their wages may or may not be exempt from federal income taxes under an income tax treaty, unless the provisions of a Totalization Agreement relieve such aliens from liability for U.S. Social Security/Medicare taxes. Foreign teachers, researchers and other professionals in O-1 or TN visa status Foreign scholars, teachers, researchers, trainees, or other professionals who arrive in the United States in O-1 status or TN status (from Canada or Mexico under the NAFTA treaty) are fully liable for U.S. Social Security/Medicare taxes from the very first day of U.S. employment if they are employed on the payroll of the university or other employer, regardless of whether or not they are resident or nonresident aliens, unless the provisions of a Totalization Agreement relieve such aliens from liability for U.S. Social Security/Medicare taxes. Self-employment tax liability An NRA is not liable for the self-employment tax. However, once an alien individual becomes a Resident Alien under the residency rules of the Code, the resident alien then becomes liable for self-employment taxes under the same conditions as a U.S. citizen. However, in certain rare cases, it is possible for a nonresident alien to choose to pay U.S. self-employment tax on his U.S. source self-employment income under the terms of a Totalization Agreement. As a general rule, the immigration laws of the U.S. do not permit nonimmigrants to earn self-employment income. Nevertheless, if a nonimmigrant violates his nonimmigrant status and earns self-employment income in the U.S., such self-employment income is subject to U.S. federal income tax and, if he becomes a resident alien, is also subject to U.S. self-employment tax. Request refund of taxes withheld in error If Social Security or Medicare taxes were withheld in error from pay that is not subject to these taxes, the employer who withheld the taxes for a refund should be contacted to request a refund. If the employer does not provide a full refund of the amount overwithheld, a claim for refund should be filed with the IRS on Form 843, Claim for Refund and Request for Abatement and Form 8316, Information Regarding Requests for Refund of Social Security Tax Erroneously Withheld on Wages Received by a Nonresident Alien on an F, J, or M Type Visa PDF with supporting documents. Related Foreign Students and Scholars Aliens Employed in the U.S. – Social Security Taxes Foreign Student Liability for Social Security and Medicare Taxes Foreign Agricultural Workers Social Security Tax/Medicare Tax and Self-Employment Student Exception to FICA Tax Totalization Agreements
