Refund of fica

[JenMO]

Client is 4029 exempt, but exempt employer withheld FICA taxes on her W-2. How do you apply for a refund of the taxes withheld? On the 1040, thru the employer?

[Roland Slugg]

Client is 4029 exempt, but exempt employer withheld FICA taxes on her W-2.

Since FICA taxes aren't withheld on a W-2, I'm assuming you meant that FICA was withheld from the person's wages and reported on her W-2.

A 4029 exemption does not take effect until the beginning of the calendar quarter after F-4029 is submitted, and even then only if it's approved by the IRS. If it appears that the FICA applied for part of the year but not all of it, the time delay of the exemption taking effect may be the reason. If F-4029 was, in fact, approved by the IRS, and the exempt employer continued withholding FICA (and Medicare) anyway, the employee should seek reimbursement from the employer. She should also request that a corrected W-2 be issued to her.