Frequently Asked Questions About Medical Resident FICA Refund Claims
Although the University of Utah Office of General Counsel cannot provide you with legal advice, we hope that this information is helpful. We encourage you to consult with your own legal or tax advisor about your situation.
Questions About FICA Tax Refund Payments
Q. Why have I received a check for FICA REFUND PLUS ACCRUED INTEREST?
A. This payment is the result of FICA tax refund claims filed on your behalf by the University after having received your written consent.
Q. Do I need to file an amended tax return?
A. The University will file corrected payroll tax returns for each year with the Social Security Administration adjusting Social Security and Medicare wages and taxes. This filing will not result in medical residents having to file amended tax returns.
Q. When were the FICA taxes that are being refunded paid?
A. The refunded FICA taxes were paid for periods from January 1, 1995 through March 31, 2005 during which you received wages as a medical resident and for which you consented to the filing of refund claims.
Q. How will the refund affect my current or future Social Security benefits?
A. The University will file corrected payroll tax returns with the Social Security Administration. As a result of this filing, you will not receive Social Security credit for wages earned during this time period. The Social Security Administration website at the following link http://www.ssa.gov/ provides tools for estimating your future social security benefits and for determining your eligibility for social security and Medicare benefits.
Questions About FICA Tax Refund Claims
Q. Hasn't the Supreme Court disallowed FICA tax refund claims for medical residents?
A. The United States Supreme Court has upheld an IRS regulation that disallows these claims for periods beginning after the 1st quarter of 2005. This regulation has no application to periods prior to the 1st quarter of 2005.
Q. Will the University continue to pursue medical resident FICA tax refund claims for periods after March 31, 2005?
A. The University plans to file protective claims pending a final legal analysis of the effect, if any, of the Supreme Court's decision to uphold an IRS regulation requiring payment of FICA taxes in connection with medical residents' wages beginning the 2nd quarter of 2005.
Questions About FICA Taxes
Q. How can I obtain more information about FICA taxes?
A. The Internal Revenue Service website at the following link http://www.irs.gov/ provides information about FICA taxes.
Questions About Additional Income and Eligibility
Q. What is the effect of additional income from moonlighting or other sources on my eligibility to claim a refund of FICA taxes paid in connection with my medical residency or fellowship wages?
A. Income from moonlighting or any source other than your residency or fellowship is irrelevant to your eligibility to claim a refund of FICA taxes paid in connection with your medical residency or fellowship, even if your other sources of income resulted in earnings in excess of the Social Security wage base and, consequently, a refund or credit of FICA taxes.