Student Tax Exemption (FICA)

The term FICA (Federal Insurance Contributions Act) identifies both portions of the tax — Social Security and Medicare. When eligible, Social Security is withheld at a rate of 6.2% and Medicare at 1.45% for a total of a 7.655% withholding rate.

An individual who is a half-time undergraduate student or a half-time graduate or professional student will qualify for the Student FICA exemption with respect to services performed at or for institutions of higher education in which they are enrolled.