No, students on STEM OPT are generally NOT required to pay Social Security and Medicare (FICA) taxes, as long as they are still considered nonresident aliens for tax purposes.
Here’s why:
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F-1 students (including those on OPT and STEM OPT) are exempt from FICA taxes for the first 5 calendar years in the U.S.
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This exemption applies regardless of whether you're on regular OPT or STEM OPT.
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The IRS classifies F-1 students as nonresident aliens during these first 5 years, and nonresident aliens are exempt from FICA taxes under IRC Section 3121(b)(19).
Important Notes:
| Situation | FICA Taxes (Social Security & Medicare) |
|---|---|
| F-1 student on STEM OPT, within first 5 years | Exempt |
| F-1 student on STEM OPT, after 5 years (becomes resident alien) | Must pay |
| Employer mistakenly withholds FICA | You can request a refund |
What if FICA taxes were withheld on your STEM OPT wages?
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You should first ask your employer for a refund.
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If the employer can’t refund, you can file Form 843 and Form 8316 with the IRS to claim a refund.
Let me know if you want help with the refund process or understanding your tax residency status!
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