Explained: How FICA tax affects Indian students and OPT workers in the US
What is FICA tax?
FICA tax and OPT: The current situation
Are Indian students required to pay FICA tax?
Proposed policy changes in 2025
Why it matters for Indian students
The bottom line
For thousands of Indian students studying and working in the United States, a little-known but critical part of the paycheck calculation is the FICA tax. As debates intensify in Washington over whether to extend these taxes to foreign students on the Optional Practical Training (OPT) program, understanding the current rules, and the possible changes ahead is essential.FICA stands for the Federal Insurance Contributions Act, a law that mandates payroll taxes to fund two major US social programs: Social Security and Medicare.
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