FICA Taken Out of Your OPT Paycheck? How to Get It Back With Forms 843 and 8316

Social Security and Medicare on your OPT pay stub is often a payroll error you can reverse, but the order of steps and the filing window decide whether you get the money back.

Part of our guide to US taxes on F-1, OPT and H-1B.

If Social Security and Medicare (FICA) came out of your OPT paycheck while you were a nonresident alien for tax purposes, it was almost certainly withheld in error, and you can get a FICA refund. Ask your employer's payroll team first. If they cannot or will not refund all of it, file IRS Form 843 with Form 8316 and your supporting documents.

Status as of 2026-11-01: the student exemption in IRC 3121(b)(19) is in effect and unchanged. The OPT Fair Tax Act (S. 2940; H.R. 8972), which would end it for OPT, is introduced and referred only and has not passed either chamber.

FICA refund on OPT: the short answer

Nonresident F-1, J-1 and M-1 students owe no Social Security or Medicare tax on work their status allows, including on-campus jobs, CPT, OPT and STEM OPT. If payroll withheld it anyway, the IRS says to ask the employer for the refund first. Only if you cannot get a full refund do you file Form 843 with Form 8316.

The IRS sets that order on its foreign student FICA page: "contact the employer who withheld the taxes for a refund." Form 8316 says you "must first try to get a refund of the Social Security taxes from your employer before filing a claim with the Internal Revenue Service."

Our tax guide for international students on FICA and treaties covers treaties and which return to file. This post covers the refund claim itself.

Are OPT students exempt from FICA?

Yes, while you are a nonresident alien. The IRS lists exempt work as on-campus jobs, off-campus work USCIS allows, and "Practical Training student employment on or off campus", which covers OPT and STEM OPT. You need both pieces: F-1, J-1 or M-1 status, and nonresident tax status.

Who owes FICA on wages, as of 2026-11

The 2026 stakes: Social Security is 6.2% on wages up to a $184,500 wage base (a maximum employee tax of $11,439), and Medicare is 1.45% with no cap, so 7.65% of most OPT salaries. For 2027 the wage base rises to $192,300 (SSA notice, Federal Register, 2026-10-26).

The five-calendar-year test, by the year you arrived

Under IRS Publication 519, you stop being an "exempt individual" student "if you have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years", unless you show you do not intend to reside permanently in the US and have substantially complied with your visa. The arrival year counts even if you landed in December. Our Substantial Presence Test guide covers the day count.

When OPT pay can start carrying FICA, as of 2026-11 (our reading of Pub 519)

Pub 519 says residency under the substantial presence test generally starts on "the first day you are present in the United States during that calendar year." So in the year you pass 183 days, the exemption is gone for that whole year's OPT pay, not only the pay after day 183 (our reading). FICA withheld in that year is usually not a refund case.

Earlier F or J years count too, such as an exchange semester years before your master's. Your exempt days are documented each year on Form 8843, and the IRS says not filing it can cost you the day exclusion; if you missed one, see who must file Form 8843 before claiming.

Path 1: How do I get a FICA refund from my employer?

Write to payroll, show that you were a nonresident F-1 student on authorized OPT, and ask them to stop withholding and refund what they took. The IRS requires you to try this first, and it is usually the fastest route.

• Same calendar year. If payroll catches it before December 31, it can repay you and correct its own quarterly filings, so your W-2 shows the right numbers and no IRS claim is needed.
• An earlier year. The employer corrects its filings with Form 941-X and a corrected W-2 (Form W-2c). The Form 941-X instructions (revised 04/2026) say that for prior-year overcollections the employer certifies it holds employee statements "stating that they didn't and won't receive a refund or credit for the prior-year taxes." Expect to sign one.

Your employer also paid a matching 7.65%; that half is the employer's to recover, not yours.

A message that gives payroll what it needs: "I am an F-1 student on OPT (EAD valid [dates]) and a nonresident alien for tax purposes. Under IRC 3121(b)(19) my wages are exempt from Social Security and Medicare tax. Please stop withholding, refund the $[amount] withheld from [first pay date] to [last pay date], and confirm in writing." Keep the reply, or a record that none came; it goes into any IRS claim.

Employer refund vs IRS claim at a glance

Path 2: How to file Form 843 and Form 8316 with the IRS

Form 843 (Rev. December 2024) is the general "Claim for Refund and Request for Abatement"; Form 8316 (Rev. January 2006) is a one-page questionnaire for F, J and M visa holders.

1. Check your pay stubs and Form W-2: box 4 is Social Security tax withheld and box 6 is Medicare tax withheld. Note the amounts and the pay dates they cover.
2. Confirm you were a nonresident for that year (see the arrival-year table) and that you filed Form 8843 for each exempt year.
3. Ask your employer in writing first (Path 1), then get its statement of what it repaid and claimed, or write your own statement explaining why you could not get one.
4. Complete Form 8316. Question A asks whether the income was "directly related to your course of studies"; per the form, a no means the tax was correctly withheld. Questions 1 to 6 cover what your employer repaid or claimed, and question 7 asks whether you claimed any of it against your income tax.
5. Complete Form 843 using the Form 843 instructions (revised 12/2024). The reason box at the top reads "Refund to employee of social security, Medicare, or RRTA tax withheld in error, but only if your employer will not adjust the overcollection." Line 1 is the tax period, line 2 the amount, line 4 box a "Employment" the type of tax, and line 8 your explanation and computation, with one Form 843 per tax period.
6. Attach copies, never originals, of the documents below.
7. Mail the package to the address in Publication 519 by trackable mail, and keep a full copy.

What documents go with Form 843 and Form 8316?

Publication 519 (2025), under "Refund of Taxes Withheld in Error", lists:

• A copy of your Form W-2
• A copy of your visa
• Form I-94, or other documentation showing your date of arrival or departure
• A complete copy of your Form I-20 (F-1 or M-1), or Form DS-2019 (J-1)
• Form I-766, your EAD, if you were on optional practical training
• The employer's statement of what it reimbursed and what it claimed, or your own statement explaining why it is missing
• If you were exempt for only part of the year, pay statements showing the tax paid during the exempt period

Add Form 8316 itself, which the IRS foreign-student FICA page pairs with Form 843. If you lack a copy of the I-20 showing your OPT recommendation, ask your DSO.

Where do you mail it?

Publication 519 gives this address: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. The Form 843 instructions point nonresident aliens claiming FICA withheld in error to "the address in Pub. 519". A separate IRS page on supporting documents, which still refers to INS forms, says to file where your employer files its Forms 941; if they still disagree when you file, follow the current Pub 519 or ask a tax professional.

Worked example: a $90,000 OPT salary taxed in error

An F-1 graduate first arrived in August 2022 and is on OPT for all of 2026 at $90,000 a year. Her exempt years are 2022 to 2026, so her 2026 OPT pay is exempt, but payroll withheld FICA anyway.

• Social Security at 6.2%: $5,580
• Medicare at 1.45%: $1,305
• Total withheld in error: $6,885 (our arithmetic)

She spots it on 2026-11-01. If payroll refunds it before year-end, her 2026 W-2 should show no FICA and she needs no IRS claim. If payroll refuses, she waits for her 2026 W-2 and files Form 843 and Form 8316 for tax year 2026. Her days start counting in 2027, so if she is still on OPT and present 183 days that year, FICA correctly applies to her 2027 pay (our reading).

Change one fact: her H-1B change of status takes effect 2026-10-01. Only January to September pay ($67,500) was exempt, so $5,163.75 is refundable (our arithmetic). Her W-2 shows one combined figure for the year, which is why Pub 519 asks for pay statements covering the exempt period.

How long do you have to claim, and how long does a FICA refund take?

The Form 843 instructions say you "must file a claim for a credit or refund within 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later." For wages, the return is your employer's Form 941, and IRC 6513(c) treats a year's Forms 941, and the tax paid with them, as filed and paid on April 15 of the following year.

Outer limits by the year FICA was withheld, as of 2026-11 (our arithmetic)

Treat these as outer limits, not targets (some fall on a weekend). If 2023 is your year, you have months, not years.

On speed, none of the IRS pages we checked publishes a processing time for a Form 843 FICA claim. Keep your mailing receipt and follow up with the IRS if nothing arrives.

Can I get FICA back after switching to H-1B?

Yes, for wages earned before the H-1B took effect, if you were a nonresident F-1 student then and you file within the window. From the H-1B start date, Social Security and Medicare apply whatever your income tax residency. See how H-1B status affects your taxes and when FICA starts after an OPT to H-1B change of status.

Keep the filings separate. The FICA claim is always its own Form 843, never part of your 1040-NR, your 1040 or a first-year dual-status return.

Does the exemption apply to my F-2 spouse?

No. The IRS excludes F-2, J-2 and M-2 spouses and children, and Pub 519 says their services "are covered under social security." An F-2 spouse may not accept employment at all under 8 CFR 214.2(f)(15)(i), so this usually comes up for a J-2 spouse working with authorization, whose wages carry FICA.

Is the OPT FICA exemption going away?

Not as of 2026-11-01. The OPT Fair Tax Act (S. 2940, introduced 2025-09-30; H.R. 8972, introduced 2026-05-21) would treat OPT as employment for FICA, but both bills are introduced and referred only, and unenacted bills die when the 119th Congress ends on 2027-01-03. OPT pay stays FICA-exempt for nonresidents.

Common mistakes

• Claiming it on your income tax return. The excess Social Security credit is for workers whose withholding from two or more employers topped the annual maximum. Wrongly withheld FICA comes back through your employer or Form 843.
• Claiming twice. If you signed your employer's statement that you will not seek an IRS refund, do not also file Form 843 for the same tax.
• Claiming wages from a non-exempt period. Pay after your H-1B start, or in a year you passed the substantial presence test, carried FICA correctly.
• Using Form 843 for Additional Medicare Tax. Pub 519 says that 0.9% tax, withheld above $200,000, is claimed on your return with Form 8959.
• Sending a claim with no employer statement. Without it, or your own explanation of why it is missing, the package is incomplete.

Frequently asked questions

Are OPT students exempt from FICA?

Yes, while you are a nonresident alien for tax purposes. IRC 3121(b)(19) exempts nonresident F-1, J-1 and M-1 students from Social Security and Medicare tax on work their status allows, including CPT, OPT and STEM OPT. It ends when you become a resident alien or your H-1B takes effect, and it is unchanged as of November 1, 2026.

How do I get a FICA refund from my employer?

Ask payroll in writing, with your EAD and I-20, to stop withholding and repay what it took. For an earlier year the employer fixes its filings with Form 941-X and Form W-2c and will usually ask you to sign a statement that you will not claim the same refund from the IRS.

What documents go with Form 843 and Form 8316?

IRS Publication 519 (2025) lists copies of your W-2, visa, I-94, complete I-20 and EAD, your employer's statement on any refund or credit (or your own statement explaining why it is missing), and pay statements if only part of the year was exempt.

How long does a FICA refund take?

An employer refund runs on payroll's schedule and is usually the fastest route. The IRS pages we checked on November 1, 2026 publish no processing time for a Form 843 claim, only the deadline, generally 3 years from the return date or 2 years from payment, whichever is later.

Can I get FICA back after switching to H-1B?

Yes, for wages paid while you were still a nonresident F-1 student, if you file within the refund window. FICA correctly applies from the day your H-1B takes effect, so only the earlier pay is refundable, and Publication 519 asks for pay statements covering the exempt period.

Who to ask

A tax professional who prepares nonresident returns can confirm your residency for a given year, your exact deadline, or a claim that mixes exempt and non-exempt pay. Your DSO handles SEVIS and I-20 records. If any wages came from work outside your authorization, such as before your EAD start date, talk to your DSO and a licensed immigration attorney before filing: the exemption does not cover that work, and the dates matter for your status.

Sources

• IRS, Foreign student liability for Social Security and Medicare taxes
• IRS, Social Security tax, Medicare tax and self-employment
• IRS Publication 519 (2025), U.S. Tax Guide for Aliens
• IRS Form 8316 (Rev. January 2006)
• IRS, About Form 843 and Instructions for Form 843 (12/2024)
• IRS, Instructions for Form 941-X (04/2026)
• 26 U.S.C. 6513, Cornell LII
• H.R. 8972, OPT Fair Tax Act, GovInfo
• SSA 2027 wage base notice, Federal Register, 2026-10-26

How we checked this: on 2026-11-01 we read the IRS pages, publications and forms listed above, the statute and the bill record; dollar examples and deadline dates are our arithmetic.

This is general information, not legal or tax advice; your own I-20, I-94, EAD and W-2, and your tax professional or DSO, govern your situation.

If you are on OPT or STEM OPT and also want help finding employers that sponsor H-1B, F1Jobs can walk you through how we work.