Who Is Exempt From Paying Social Security Taxes?

Social Security is a federal program in the United States that provides taxpayers with certain benefits, including retirement and disability income.

Medicare, Medicaid, and death and survivorship benefits are also part of the Social Security program.

Social Security taxes are collected from most workers, regardless of whether they work for an employer or are self-employed. These taxes are used to fund Social Security benefits.

However, some American taxpayers may be exempt from paying Social Security taxes. Read on to learn who they are.

Who Is Exempt From Social Security Taxes?

Members of Qualifying Religious Groups

Members of certain religious groups qualify for Social Security tax exemption. To claim such an exemption:

• You must waive your rights to all Social Security benefits, including hospital insurance.
• Your religious group, and you, must be officially opposed to public or private insurance plan benefits (including Social Security benefits) such as retirement, disability, and death benefits.
• You and your employer are members of such a religious group and your applications for exemption have been approved.
• Your religious group has been in existence continuously since Dec. 31, 1950.
• Your religious group can demonstrate that it has continuously made “reasonable provision” for its dependent members since Dec. 31, 1950.

Religious organizations and their members who desire exemption from Social Security taxes must apply for it by completing Form 4029.

Individuals who have qualified for Social Security benefits (even if these benefits were never utilized) will not be exempt.

Non-Resident Aliens

Non-resident aliens (individuals who are not U.S. residents or citizens) usually pay Social Security taxes but may qualify for an exemption based on the type of visa they have been issued.

Non-residents with the following visas are exempt from paying Social Security taxes:

A visas

Foreign government employees (plus their families and household personnel) are exempt from paying taxes on the salaries they earn in their official capacities.

D visas

The crew on a ship or aircraft may be exempt if they serve on a foreign vessel and for a foreign employer, or if they serve outside the U.S.

F, J, M, and Q visas

Students, scholars, educators, trainees, researchers, and others in the U.S. temporarily are exempt from Social Security taxes on earnings if the work is allowed by the U.S. Citizenship and Immigration Services (USCIS) and it’s work that they entered the U.S. to carry out.

G visas

The employees of international organizations whose work takes place in the U.S. in their official employment capacity are exempt from paying Social Security taxes.

H visas

An H-2 non-resident who is a resident of the Philippines and who performs services in Guam is exempt from paying Social Security taxes.

So is an H-2A non-resident who comes to the U.S. temporarily to perform agricultural labor.

Certain other non-resident wages paid for specific types of work, such as ministry services and student nursing, are exempt as well.

Students With Jobs at Their Schools

A student who acquires a job at their university (or college) that’s tied to their continued enrollment is eligible for a Social Security tax exemption on the income earned from their job.

School employees who use an employee benefit to enroll at the university do not qualify.

Foreign Government Employees

Individuals who work for a foreign government may be exempt from Social Security taxes while working on official business, if the applicable tax treaty provides for an exemption or the government meets the applicable U.S. law.

Their employees, spouses, children, and household personnel only qualify for the exemption if they are also employees of a foreign government.

In addition, an individual who works for an international organization may also qualify for the exemption from Social Security taxes, if the agreement that created the organization provides for an exemption or the organization meets the applicable U.S. law.

The Bottom Line

Some individual wage-earners in the U.S. may qualify for an exemption from paying Social Security taxes.

This group of people consists of members of certain religious groups, non-resident aliens, students who have a job at the college at which they’re enrolled, and employees of foreign governments or international organizations.

Be sure to check on the requirements involved because even if you are one of those who qualifies, you may need to apply for the exemption to be recognized by the IRS as exempt.