How to Get a Social Security & Medicare (FICA) Refund After Repaying Employer Wages

Thanks for the info! So if I'm understanding correctly, I should first reach out to my former employer to see if they'll refund the FICA taxes directly to me? That seems unlikely since they weren't exactly helpful when I left. What specific information do I need to include on Form 843 if I have to go that route?

Yes, your first step should be contacting your former employer's payroll department to request the FICA refund. They actually have a financial incentive to help since they can recover their matching portion of those taxes. If you need to file Form 843, you'll need to complete all the personal information sections, check box 4 for "Social Security or Medicare taxes," and provide a detailed explanation in Part II. Include the exact amount of FICA taxes you're requesting refunded, the tax period involved, and reference the wage repayment. Attach the letter from your employer, relevant pay stubs showing the original FICA withholding, and any documentation of your repayment transaction.

How long did it take to get your refund after filing Form 843? I'm in a similar situation but have heard horror stories about waiting 6+ months for anything from the IRS these days.

I'm skeptical about using online services for something like this. Did you have to upload personal financial documents? And how much did it cost? Seems like the kind of thing you could just figure out yourself with some research.

For the first question about timing - I filed my Form 843 in February and received my refund check in late May, so about 3.5 months. This was faster than I expected based on what I'd heard about IRS processing times. Regarding the concerns about uploading documents - yes, you do need to upload the relevant documentation, but they use bank-level encryption and delete your documents after analysis. The cost actually wasn't an issue for me since the value of getting the additional refund amount they identified made it worthwhile, and it saved me hours of research and stress.

Wait, how does this actually work? Do they have some special access to the IRS phone lines or something? I've been calling about my amended return for three weeks straight and can't get through.

This sounds like a scam to me. The IRS phone system is deliberately designed to be impossible to navigate. No way some third-party service can magically get you through when millions of others can't.

It works by using their system to continually redial and navigate the IRS phone tree for you. They have software that keeps your place in line and recognizes when a human is about to answer. It's completely legitimate - they don't have special access, they're just automating the painful process of waiting on hold. For amended returns specifically, they can help you reach the right department. The IRS has different phone trees for different issues, and knowing which options to select makes a huge difference in wait times.

That doesn't sound right. The timing of the repayment shouldn't matter as long as you have documentation that it was specifically repaying wages previously received. Did you talk to a tax professional about this? I'm dealing with a cross-year repayment too and want to make sure I handle it correctly.

You're right that my initial information was wrong. I spoke with a CPA who explained that the IRS looks at the substance of the transaction, not just the timing. The key was proving the repayment directly related to the earlier wages. I had to provide additional documentation showing the repayment was specifically for returning the earlier compensation, not just a random payment to a former employer. Once I had that paperwork in order, I was able to claim the FICA refund through Form 843 just like anyone else.

Yes, there's a statute of limitations. You generally have to file Form 843 within 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. So for 2019 taxes filed in 2020, you should still be within the window if you act quickly!

Great question! You can only recover the employee portion of FICA taxes that were actually withheld from your paychecks - the 6.2% Social Security and 1.45% Medicare taxes. The employer matching contributions aren't recoverable through Form 843 since those weren't deducted from your wages. For approaching your former employer, I'd suggest contacting their payroll department directly (not HR) and being very specific about what you need. Explain that you're requesting a refund of the employee FICA taxes withheld when you repaid wages, and mention that they can recover their matching portion by adjusting their Form 941. Having the exact dollar amounts and tax periods ready will help show you're serious and organized. If you send a written request, include copies of your repayment documentation and reference the specific pay periods involved. Some employers are more cooperative when they realize they can also benefit financially from the adjustment process.

I had success with my former employer by being persistent but professional. After my initial email to payroll was ignored, I followed up with a phone call and got transferred to their tax department. The key was emphasizing that this wasn't just beneficial for me - they could recover their matching portion too. I prepared a simple one-page summary showing the original wages, the repayment amount, and the exact FICA taxes involved. Having everything laid out clearly made it easier for them to understand what I needed. It took about 3 weeks total, but they eventually processed the refund directly. If your former employer won't cooperate, don't let that discourage you from filing Form 843. The IRS can still process your claim independently - you'll just need more documentation to support your case. Keep records of any communication attempts with the employer too, as that can strengthen your position with the IRS.

Great question about reporting the FICA refund! If you receive the refund directly from your former employer, you typically don't need to report it as income on your current year's tax return since it's essentially a correction of an overpayment rather than new income. However, you should keep detailed records of the refund for your files, including any documentation from your employer showing the adjustment. Some tax professionals recommend noting the refund in your tax records for the year it was received, just in case there are any future questions during an audit. If you end up going the Form 843 route instead and get a refund directly from the IRS, the same principle applies - it's not taxable income since you're getting back money that was over-withheld in the first place. Good luck with contacting your former employer! Even if the relationship was strained, approach it as a straightforward business matter. Many payroll departments handle these requests routinely and may be more cooperative than you expect, especially when you explain the mutual benefit of the FICA adjustment.

This is really valuable advice about documentation! I wish I had seen this earlier - I'm in the middle of gathering paperwork for my own FICA refund claim and realize I'm missing some of the original pay stubs. The multi-state issue you mentioned is particularly interesting since I moved from California to Texas between when I received the wages and when I had to repay them. I hadn't even considered that this might complicate things with state tax treatment. Did you end up needing professional help to navigate the amended state returns, or were you able to figure it out yourself? Also, when you say the whole process took 6 months, was that mostly waiting time for the IRS to process your Form 843, or were there back-and-forth requests for additional documentation that extended the timeline?