In general, US taxpayers must pay Social Security taxes on their employment or self-employment income.
As the filing deadline approaches this tax season, more than a few Americans have done their duty with the IRS. However, there are still people who are hoping to find more prints and take advantage of this economic situation.
Because of this, the Internal Revenue Service (IRS) has earmarked savings for those who qualify and gives them tax breaks. However, they separate these individuals from entitlement to Social Security benefits.
Who Receives a Social Security Tax Reduction?
Nonresident aliens are individuals who do not have US citizenship or legal residency in that country. With that in mind, those who work in the United States typically pay Social Security taxes on the income they earn.
In other words, foreign government employees living in America do not have to pay Social Security taxes on their wages.
Likewise, their relatives and domestic workers have the same opportunity. Therefore, the right to this tax exemption is determined by the type of visa that the non-resident alien has.
The religious exemption applies to members of a recognized religious sect who oppose accepting Social Security benefits. These benefits would be, for example, disability pensions, old-age pensions or death benefits.
This exemption must be requested using Form 4029 and the religious community must be registered as early as 1950. On the other hand, this community must be able to maintain a decent standard of living for its members.
Others exempt from Social Security tax are students who hold part-time jobs at the school where they study. This exemption only applies to income from this activity and not from other employers.