FICA Refunds for Former Residents Information
FICA Update October 2013: Please be advised that, beginning in the first quarter of 2005, all payments made to students enrolled in graduate medical education are subject to FICA taxes, as a result of regulations issued by the Internal Revenue Service which were upheld by the United States Supreme Court in 2011. At least one state institution (the University of Texas) has commenced litigation which maintains that the Supreme Court ruling does not apply to states which are subject to agreements under the provisions of Section 218 of the Social Security Act. The University of Texas had summary judgment entered against it in the United States District Court and has appealed to the 5th United States Circuit Court of Appeals in New Orleans. The University of Louisville has not, and will not, commence any such litigation, and, effective with the first quarter of 2005, has withheld FICA taxes from all resident stipends and will continue to do so. If any individual wishes to claim that he or she should not be subject to FICA taxes on the resident stipend received by such individual, that individual is free to file a claim for refund with the Internal Revenue Service. The University of Louisville makes no recommendation concerning the prosecution of such a claim, and expresses no opinion as to its merits; however, the University of Louisville will NOT be pursuing any such claim, either on its own behalf or that of any resident who was enrolled after the first quarter of 2005, and therefore anyone who believes he or she is entitled to a refund of FICA taxes after that time MUST file an individual claim for a refund.
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