Am I still exempt from FICA taxes as an F1 student on OPT? Confused about 5-year exemption rule

The 5-year exemption for F1 students regarding FICA taxes (Social Security and Medicare) is based on calendar years in which you have F1 status and are considered a nonresident alien for tax purposes. Your 5 calendar years would be 2020, 2021, 2022, 2023, and 2024. This means that starting January 1, 2025, you would generally become subject to FICA taxes, assuming you maintain your F1 status and meet the substantial presence test. Your previous B2 tourist visa stay doesn't affect this calculation since the FICA exemption specifically applies to your time in F1 status. The IRS looks at your presence in F1 status when determining this particular exemption. While working on OPT, you're still considered to be in F1 status, so the same exemption rules apply. Just make sure you're actually still considered a nonresident alien for tax purposes, as that's a requirement for the exemption. Some students can become tax residents before the 5 years are up depending on their days of presence in the US.

I went through this exact situation last year! I found this amazing tool at https://taxr.ai that helped me figure out my exact FICA exemption period. I was super confused about how my time on OPT affected my status, and I kept getting different answers from HR and other international students. The tool analyzed my specific situation - when I entered the US, my visa type, and my work status - and gave me a clear report explaining exactly when my FICA exemption would end and how much I should expect to pay afterward. It also explained how the substantial presence test applied to my situation, which was super helpful because I didn't realize that could impact my exemption status. What I really liked was that it showed me what documentation I needed to provide to my employer to claim the exemption correctly. Saved me from potentially having incorrect withholding!

Just wanted to update - I tried the taxr.ai tool mentioned above and it was incredibly helpful! My situation was a bit complicated because I had done a semester abroad during my program but was still maintaining my F1 status. The tool confirmed I'm still exempt until the end of 2025 and generated a detailed letter explaining the regulatory basis for my exemption that I could give to my employer. It cited the specific IRS publications and rules that applied to my situation. My payroll department had been incorrectly withholding FICA taxes for the past two months, and they've now corrected it and are processing a refund of the incorrectly withheld amounts. Such a relief to have this sorted out!

If you're having trouble with your employer not understanding your FICA exemption, I highly recommend using Claimyr (https://claimyr.com) to actually get through to an IRS agent who can explain it. I spent WEEKS trying to call the IRS directly to get official clarification because my employer didn't believe me about my exemption status, but I could never get through. Claimyr connected me to an IRS rep in under 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent explained exactly how the 5-year rule applies and even sent me documentation that I could show my employer. It was seriously the best $20 I've spent - got me a refund of over $800 in incorrectly withheld FICA taxes.

I need to apologize for my skepticism about Claimyr. After my last paycheck had FICA taxes incorrectly withheld AGAIN despite multiple conversations with HR, I was desperate enough to try it. I got connected to an IRS agent in about 15 minutes, and she was incredibly helpful. She confirmed my understanding of the F1 FICA exemption and explained that I could file Form 843 to claim a refund for any incorrectly withheld FICA taxes if my employer wouldn't correct it. She also emailed me IRS Publication 519 with the relevant sections highlighted about the 5-year rule and nonresident alien exemptions. That documentation finally convinced my employer's payroll department to fix the issue. Just wanted to update since I was wrong about it being a scam - it actually saved me a ton of time and frustration!

Be careful about the distinction between "exempt from FICA" and "exempt from federal income tax withholding." They're different things! F1 students are exempt from FICA for 5 calendar years, but you're still subject to federal income tax withholding from day one (though there may be tax treaties depending on your country). I've seen so many students get confused about this. Make sure your employer isn't withholding FICA, but they SHOULD be withholding federal income tax (unless you have a specific tax treaty exemption).

Quick warning about substantial presence test - it can complicate things! Even though F1 students get the 5 calendar year exemption from FICA, if you spend too much time in the US, you might become a "resident alien" for tax purposes before those 5 years are up. If that happens, you can lose your FICA exemption earlier than expected. Generally for F1 students, days of presence in the first 5 calendar years don't count toward the substantial presence test, but it gets complicated if you've had other visa types or exceeded certain limits.

Just wanted to add some clarity on a few points that have come up in this thread. The 5-year FICA exemption for F1 students is indeed calculated by calendar years, not from your exact arrival date. So if you arrived in January 2020, your exemption covers 2020-2024, ending December 31, 2024. One thing to keep in mind is that your employer should have proper documentation on file. Make sure they have a copy of your I-20, evidence of your F1 entry date, and ideally Form 8233 completed for the FICA exemption. Some payroll departments aren't familiar with these rules, so having the right paperwork makes the process smoother. Also, while you're exempt from FICA during OPT and STEM OPT (since you're still in F1 status), remember that this exemption is specifically for Social Security and Medicare taxes - you're still subject to federal and state income tax withholding as usual. If your employer has been incorrectly withholding FICA taxes, you can request they correct it going forward and potentially file Form 843 to claim a refund of the incorrectly withheld amounts. Good luck with your STEM OPT application!

I went through this exact same situation two years ago! The confusion around the 5-year rule is so common, especially when you're transitioning between different phases of F1 status like from coursework to OPT to STEM OPT. Just to reinforce what others have said - you're absolutely correct that your exemption runs through December 31, 2024. Since you arrived in January 2020, that counts as your first calendar year, making 2024 your fifth and final year of FICA exemption. One practical tip: when you do lose the exemption starting January 1, 2025, you'll see about 7.65% more taken out of your paycheck (6.2% for Social Security + 1.45% for Medicare). It's a bit of a shock when it first happens, so it's good to budget for that change! Also, make sure to keep good records of your exemption period and any documentation you provide to employers. I had to switch jobs during my OPT period and having all the paperwork organized made the transition much smoother with the new HR department. The good news is that once you start paying into Social Security, you'll eventually be eligible for those benefits if you end up staying in the US long-term or even if you leave and come back later in life.