FICA Tax Withdrawal and Guidance

FICA. These taxes, which are split evenly between employers and employees, cover Social Security and Medicare. Old Age, Survivors, and Disability Insurance, or OASDI, is the name given to the portion of Social Security that pays payments to retirees, spouses, and former spouses, as well as dependent children in some circumstances and disabled people who aren't yet of retirement age. The Medicare component enables persons who are 65 years of age or older (along with a few other people) to be eligible for Part A Medicare coverage at no additional expense, as well as Parts B, C, and D coverage at an additional cost.

Students with F1, M1, J1, or Q visas are exempt from paying Social Security and Medicare taxes from their income under IRS and US tax regulations because they are regarded as non-residents. The employer may deduct Social Security and Medicare taxes from employee paychecks each month assuming that the employee will be required to pay the taxes. If you are a non-resident and your employer has deducted any money for FICA taxes, the employer is required to refund the money; however, we have rarely seen any employers do so.

Social Security and Medicare taxes

Social Security taxes are currently levied at a rate of 6.2% for employers and 6.2% for employees, for a total of 12.4%. Currently, employers and employees pay 1.45% each for Medicare, for a total of 2.9%.

On single filer employee wages exceeding $200,000 per calendar year, a 0.9% Medicare surtax is withheld.

Conclusion

The appropriate paperwork must be mailed to the IRS along with a letter from your employer saying that Social Security and Medicare taxes were mistakenly withheld from your paycheck. Once the forms are mailed, it may take the IRS six to twelve months to refund the taxes that were incorrectly withheld. The tax experts in the tax industry charge a fee for this service, but USTaxHub is the only dedicated tax consulting firm in the USA that aids students in recovering their incorrectly withheld Social Security and Medicare taxes without charging a cost.

USTaxHub is a wholly client-focused tax consulting company that strives to provide free tax estimates and a variety of value-added tax services valued at $2000 to anyone who signs up on our website. We also offer year-round help from tax specialists.