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Medical Resident FiCA Refund Claims: Common Reasons an Employer or Resident May Not Qualify for a Refund

22.  Why doesn’t every hospital and its residents get refunds for tax periods before April 1, 2005?

The following are the most common reasons an employer or medical resident may not qualify for a refund:

  • You did not file a timely claim for refund. (The period of limitations for filing a claim for tax periods before April 1, 2005 has expired.) 
  • You are not eligible for the student exception to FICA taxes because you were employed by a federal employer, such as a Veterans Administration hospital.
  • You were a state or local government employee covered by a voluntary agreement (Section 218 Agreement) between the state and the Social Security Administration (SSA) to provide social security coverage for workers. If your position was covered by a Section 218 Agreement, and the agreement did not include an exception for students then your wages were properly subject to social security and Medicare tax.  
Page Last Reviewed or Updated: 02-Sep-2014