Whether you are an employee or a self-employed individual, you may be able to claim a FICA refund. FICA is the federal payroll tax that contributes 6.2% of your gross income to Social Security and 1.45% to Medicare. These taxes are not subject to wage limits. However, the tax bracket you fall into can affect the amount of FICA you are required to pay. If you have overpaid FICA, you may be eligible for a refund.
The FICA tax refund process is easier through your employer than through the IRS. Your employer must take several steps to ensure you receive your refund. The most basic requirement is to make reasonable attempts to secure employee consent to your refund claim. If you are unable to secure this consent, you cannot file your claim.
You can request a FICA tax refund from your employer by filing a claim form. You can also use a tax calculator to determine how much you may be able to claim. The tax refund takes longer than the standard income tax refund, but you may be able to get a refund even if you do not owe income tax.
If you are a non-resident immigrant, you may qualify for a FICA tax refund. However, you may need to provide documentation to prove you are eligible. If you are a non-immigrant trainee or medical intern, you may also qualify. You will also need to provide a Substantial Presence Test to prove your residency. You may be able to complete this test for free through Sprintax.
The IRS has provided a few special procedures for overpayments of FICA taxes. For example, you can claim a FICA tax refund without providing employee consent if your employee is a non-immigrant trainee. However, you must provide a written statement in order to receive your refund. The IRS also provides a minimum 45-day period during which you can get your employee's consent. If you are unable to get your employee's consent, you may be able to demonstrate to the IRS that you did not make reasonable efforts to secure consent.
You can get a FICA refund by completing the FICA Tax Refund Authorization (PDF, 64 KB). This form will open in Adobe Acrobat Reader. Once you complete this form, you should sign it. The IRS will process your refund if you meet the requirements. You can also get a refund of FICA taxes you have paid during the years 1995 to 2005. However, if you have overpaid FICA taxes, you may need to fill out additional forms. If you have paid FICA taxes to the IRS in previous years, you can file an amended business tax return. The refund may take up to six months to process. You should contact your employer if you have any questions or concerns about a FICA refund.
The IRS has issued Revenue Procedure 2017-28 to clarify some of the more basic requirements for obtaining employee consent. The procedure also clarifies the procedure for obtaining the most basic of consents, the “electronic employee consent.” Employers may secure employee consent electronically. They may also provide hard copies of the consent, but they must include a statement that the consent was electronically provided by the employee.
