Hi all. I have a quick payroll tax question.

    I arrived in the U.S. in 2020 on F-1 visa and in 2025 I worked Jan–Apr on OPT as a W-2 employee. No Social Security or Medicare (FICA) was withheld this year.

    2025 is my first year filing as a resident alien. Does the lack of FICA withholding in early 2025 create an issue for me when filing, or is this strictly an employer payroll issue? As I understand I should’ve been subject to FICA taxes in 2025 because this is the first year I file as a resident alien. However, nothing was withheld… I’m not sure what to do in this case because from my research it seems that this will not come up when I file this upcoming year on 1040.

    Appreciate any insight. thanks!

    FICA withholding question (resident alien, F1)
    byu/Biscotti_Queasy intax



    Posted by Biscotti_Queasy

    2 Comments

    1. Marc_Strohl_cpa on

      Biscotti…you are not a US tax resident, the 5 year rule DOES NOT apply to you, since you still have a tax home and closer connection to your country of origin and have not taken affirmative steps to apply for lawful permanent residence i.e. green card. You are still a NRA and are still FICA exempt, for further proof please see Form 8843 and its instructiopns a form I hope you have been filing since 2020 whether or not you have a US tax return filing.

    2. No idea why the other commenter leaps to the conclusion that you qualify for the closer connection exception.

      You probably fail to satisfy both the following requirements:

      > The student does not intend to reside permanently in the United States.

      > The student has not taken any steps to change their nonimmigrant status in the United States toward becoming a lawful permanent resident of the United States.

      For the avoidance of doubt, a pending I-130, I-140, or I-485 definitely disqualifies you for the closer connection exception, per Regs. Sec. 301.7701(b)-2(f). A pending PERM (ETA-9089) most likely also disqualifies you, considering the regs mention ETA-750, and ETA-9089 is its successor.

      https://www.irs.gov/individuals/international-taxpayers/the-closer-connection-exception-to-the-substantial-presence-test-for-foreign-students

      https://www.ecfr.gov/current/title-26/part-301/section-301.7701(b)-2#p-301.7701(b)-2(f)

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