07/28/2026
Wage income is usually subject to Social Security taxes and Medicare taxes, which are collectively called F**A taxes. F**A taxes total 7.65% of an employee’s wages, so it is not a small amount.
F**A taxes do not apply to wages paid to students employed by a school, college, or university where they are enrolled and regularly attend classes, if the student’s primary connection to the school is as a student.
This exemption can help students with limited financial resources keep more of their paycheck.
The IRS sets forth safe harbor guidelines for the student F**A exemption. Students who meet these guidelines are treated as exempt from F**A taxes. Students who do not meet the safe harbor guidelines may still qualify for the exemption based on the facts and circumstances of their employment.
Under the safe harbor guidelines, the employer must be a school, college, or university of higher education whose primary function is to provide educational activities. In addition, the employee must (1) be at least a half-time undergraduate, graduate, or professional student, (2) not be a full-time employee, (3) not be a professional employee, and (4) not be a career employee eligible to receive certain employment benefits, such as vacation, sick leave, or paid holiday benefits. If the benefits are mandated by state or local law, this will not cause an employee to be ineligible for F**A exemption.
If you are eligible for the F**A tax exemption, check your W-2 to see if F**A taxes were withheld by mistake. They are normally found on your W-2 in Box 4 (Social Security tax withheld) and Box 6 (Medicare tax withheld).
If F**A taxes were withheld, ask your employer for a refund!
If you are unable to get a full refund from your employer, you can file a claim for a refund with the IRS on Form 843, Claim for Refund and Request for Abatement. (Do note that these refund claims must be made within 2 years from when the F**A tax was withheld!)
Do you need help determining whether you are eligible for the F**A tax exemption? Are you having difficulty getting a refund of your F**A taxes even though you are eligible?
Contact us to see how we can help! Call us Monday through Thursday from 9:30 a.m. to 12:00 p.m. at 215-981-3800 or apply for free assistance online at philalegal.org/apply.
