FICA tax exemption for F-1 and J-1 students

What the exemption actually is

Social security and Medicare taxes, usually called FICA, are withheld from most wages for work performed in the United States, whatever the worker’s nationality. Publication 519 puts the general rule this way: if you work as an employee in the United States you must pay these taxes in most cases, and your employer must deduct them even if you do not expect to qualify for benefits. The 2025 figures it gives are a social security wage base of $176,100 and a maximum credit threshold of $10,918.20 for multiple employers.

Students and exchange visitors are an exception that is built into the social security law rather than the income tax. Services performed by a nonresident alien temporarily in the United States as an F, J, M or Q nonimmigrant, if the services carry out the purpose for which the person was admitted, are not covered. That means no withholding of either tax from the pay. It is separate from the income tax treatment, which still applies unless a treaty reduces it.

Which work qualifies

The publication says these kinds of services are very limited and generally include only on-campus work, practical training and economic hardship employment. On-campus work means work on the school’s premises, including work at an off-campus location that is educationally affiliated with the school. Work under the terms of a scholarship, fellowship or assistantship is treated as part of the academic program of a student taking a full course of study. The USCIS permits on-campus work for F-1 students if it does not displace a U.S. resident.

A separate tip in the publication says any student enrolled and regularly attending classes at a school may be exempt from social security and Medicare tax on pay for services performed for that school. By contrast, work that does not carry out the purpose of the admission, such as an unrelated job the visa does not support, is not within the exemption and is ordinarily subject to the taxes.

The residency switch

The most common mistake is to assume the visa controls the answer. It does not. The publication states that social security and Medicare taxes will be withheld from the pay for these services if you are a resident alien for tax purposes, even though your F, J, M or Q classification remains the same. A student is a resident alien after the exempt individual period ends and the substantial presence test is met, or earlier for a green card holder.

The result is that an F-1 student who is exempt in years one through five of calendar-year status is generally a nonresident for payroll purposes, and may face FICA withholding from the sixth year if they become a resident, as explained on the five-year rule page. A J-1 researcher or teacher can become a resident sooner, because of the separate two-of-six-years limit for teachers and trainees. Both rules are tested year by year, so the answer can change mid-career.

Spouses and children

Dependents are treated differently. The publication says services performed by the spouse or minor child of a nonimmigrant with the classification F-2, J-2, M-2 or Q-3 are covered under social security. An F-2 spouse who works, which is limited by immigration law, would therefore normally have the taxes withheld. The checker returns this result for the dependent option.

If tax was withheld by mistake

Payroll sometimes withholds FICA from an exempt student, because the system treats the student as any other employee. The practical first step is to give the employer the facts: visa classification, the nature of the work, and tax residency status. The publication does address one related situation: if you have more than one employer and the combined social security tax deducted is above the stated maximum, you can claim a credit on your income tax return, and if a single employer deducted more than the maximum, you ask that employer for a refund. A withholding error on an exempt student is a different situation, and this section of the publication does not set out a specific procedure for it, so check the current IRS instructions or ask a tax professional.

For the exact definition of resident status, begin with the substantial presence test calculator. The payroll answer cannot be known until the residency answer is known.

Sources

• IRS Publication 519, U.S. Tax Guide for Aliens (2025): Chapter 8, Social Security and Medicare Taxes; Students and Exchange Visitors; Nonresident Alien Students. Read November 2, 2026.

Edition read: Publication 519 (2025), U.S. Tax Guide for Aliens, for use in preparing 2025 returns. Dollar figures on this page are the ones printed in that edition; check the current publication and form instructions for your tax year. This page summarizes the publication and does not replace it.