Pre-2005 Medical Residents Entitled to FICA Refund

| July 21, 2010

I am late learning this apparently but a colleague recently told me if you were a resident between 1995 to 2005 you did not need to pay FICA. It was withheld in all cases, but most residencies/graduate medical education departments filed application for a refund based upon your status as a student.

Here is the IRS information on the issue:,,id=219731,00.html

The Internal Revenue Service has made an administrative determination to accept the position that medical residents are excepted from FICA taxes based on the student exception for tax periods ending before April 1, 2005, when new IRS regulations went into effect.

The IRS has begun contacting hospitals and universities who filed FICA (social security and Medicare tax) refund claims for these periods with more information and procedures.

Medical residents with pending claims do not need to take any action at this time.  The IRS will send letters to medical residents after it it sends letters to all employers that filed claims.

Taxpayers with currently pending suits should contact the Department of Justice attorney assigned to the case.

Additional information:

Category: Pathology News

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