Residency

Federal government opposes FICA tax refund

Residency Program Insider, April 10, 2015

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A petition from the University of Texas to the U.S. Supreme Court seeking a refund of $11 million of Federal Insurance Contribution Act (FICA) taxes assessed against its medical residents is facing opposition from the federal government.
 
Students are exempt from FICA taxes but the government said the Social Security Administration has always held that that medical residents are not students and thus are not entitled to the exemption. The Supreme Court also previously said the wages of medical residents that work more than 40 hours a week are subject to FICA taxes.  
 
Source: Law 360



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