Tax

FICA or the Social Security Tax Credit

FICA or the Social Security Tax Credit

FICA or the Social Security Tax Credit

The United States government allows for several kinds of tax credits and deductions that can be claimed as exceptions to the general necessity to pay the fees required of the Federal Insurance Contributions Act (FICA). These tax credit exemptions are applied to various kinds of professions. These eligible professions may be determined in slightly different ways according to the state where the claimant lives.
The categories under which tax credits and deductions may be claimed from the obligatory FICA Social Security payments can generally be found in fields which are not known or designed to deliver high profit margins to their operators or participants, such as institutions involved in education past the level of college. 
On a similar note, medical students actively engaged in trying to obtain certification as physicians can also be extended a tax credit through the lapsing of a requirement to pay a Social Security fee. 
For instance, graduate students can generally claim a tax credit, as can students in general who are also employed by their educational institution, such as through a student work program or some other kind of employment which does not alter the primarily educational basis of their position.
People who are employed by organizations in academe without being students of those organizations will generally not be covered under tax credits and deductions from the FICA Social Security mandated payments in that their relationship to their employer does not differ appreciably from that of that of any employer and employee in the commercial world. 
Institutions which are not by nature focused toward profits but which are still generally not eligible for tax credits and deductions in terms of the obligatory payments for FICA are those defined as charitable or non-profit groups.
The ability to secure tax credits and deductions for people who are not citizens of the country will generally vary according to the exact nature of their status in the country. For example, legal aliens who are also considered residents of the United States will generally not be able to claim any kind of tax credits to prevent them from having to pay the Social Security tax. 
In fact, generally such “resident aliens,” as the government refers to such people, are treated as holding effectively the same status as full-fledged US citizens for the purposes of the country’s system of taxation. 
On the other hand, legal aliens living permissibly inside of the United States without being considered residents can be allowed to receive tax credits and deductions from the mandated Social Security payments if they are in the country for the purpose of pursuing studies on at least a part-time basis. 
Share

Related Articles

Tax News

Woman Sentenced to Five Years Following Tax Fraud Scheme The plan seemed perfect to the three young Sacramento women: use internet tax software like TurboTax, steal Social Security numbers, and start filing fraudulent tax returns in the hopes of getting large refunds.
Proposed Pregnancy Tax Break Creates Controversy Proposed Pregnancy Tax Break Creates Controversy Michigan lawmakers have proposed a controversial new law that would give tax breaks to some pregnant women.
Statistics of Income Bulletin Released Statistics of Income Bulletin Released The Internal Revenue Service (IRS) released the 2012 issue of the Statistics of Income Bulletin last Wednesday.
More Tax Relief for Victims of Hurricane Sandy More Tax Relief for Victims of Hurricane Sandy The Internal Revenue Service (IRS) has announced more tax relief for businesses and individuals affected by Hurricane Sandy in Connecticut, New Jersey, and New York.
2013 Inflation Adjustments and Pension Plan Limitations 2013 Inflation Adjustments and Pension Plan Limitations On October 18, 2012, the Internal Revenue Service announced the increase of certain tax benefits because of inflation adjustments and 2013 pension plan limitations.
Farmers Affected by Drought Have Time to Replace Livestock Farmers Affected by Drought Have Time to Replace Livestock According to the Internal Revenue Service, farmers and ranchers affected by the huge drought in the United States have an extension to replace livestock and defer tax on gains made through forced sales.
Executive Director Pleads Guilty to Illegal Campaign Contributions Executive Director Pleads Guilty to Illegal Campaign Contributions On October 1, 2012, the US Attorney’s Office for the District of New Jersey announced that Thomas J.
Filing and Payment Extensions End October 15th Filing and Payment Extensions End October 15th On September 28, 2012, the Internal Revenue Service announced that taxpayers who received tax-filing extensions will have to file the forms by October 15.
Much Awaited Statistics of Income Bulletin Much Awaited Statistics of Income Bulletin On September 24, 2012, the Internal Revenue Service released the Summer 2012 issue of the Statistics of Income Bulletin.
Victims of Straight-Line Winds in WV Eligible for Tax Relief Victims of Straight-Line Winds in WV Eligible for Tax Relief On September 20, 2012, the Internal Revenue Service declared that victims of severe storms in parts of West Virginia that occurred on or around June 29, 2012, may receive tax relief.
Update Tax Relief for Hurricane Isaac Update Tax Relief for Hurricane Isaac The Internal Revenue Service has announced tax relief for victims of Hurricane Isaac on September 5, 2012, and the IRS has updated the areas for tax relief on September 17, 2012.
Obama Calls for Tax Credits for Unemployed Veterans Obama Calls for Tax Credits for Unemployed Veterans Calling on all members of Congress to put the country ahead of politics, President Obama called for action to help unemployed and injured Veterans land jobs during the difficult economy.
Payroll Tax Cut May Not Be Extended Payroll Tax Cut May Not Be Extended Republicans, who have already blocked much of President Obama's $447 billion jobs creation bill, may now be moving towards not extending the payroll tax cut as it expires at the end of the year.
France to Increase Tax, Cut Budget During Financial Difficulty France to Increase Tax, Cut Budget During Financial Difficulty With the European financial crisis creating havoc among Euro Zone member's economy, France has been forced to re-tool their budget in light of an unbalanced budget.

Guide To: Tax Lawyers

Guide to Finding Tax Lawyer Guide to Finding Tax Lawyer How do I find a Tax Lawyer?Tax lawyers specialize in helping clients who need guidance in navigating the complex tax codes of the United States and local state taxes.