F-1 students are generally NRAs (nonresident aliens) for the first 5 calendar years in the US and are exempt from Social Security and Medicare on wages earned for services allowed by their visa. Under the US-India income tax treaty (Article 21), Indian students may claim the US standard deduction. NRAs cannot file jointly.
Employer-withheld FICA in error. Many employers default to withholding Social Security and Medicare for everyone. Request a refund from your employer first; if they refuse, file IRS Form 843 + 8316.
India treaty standard deduction. Article 21(2) of the US-India treaty lets Indian F-1 students claim the federal standard deduction. Most CPAs miss this — it's worth $1,500–$3,500 in tax savings at typical OPT salaries.
5-calendar-year rule. Partial years count as full years. If you arrived Dec 2021, calendar year 2026 is your sixth — FICA exemption ends.
How federal income tax works for F-1 OPT holders (2026)
The US uses a progressive federal income tax with seven marginal brackets ranging from 10% to
37%. Each bracket only applies to the slice of income that falls inside it — not your whole
income. The bracket boundaries are inflation-adjusted every year by the IRS (
Rev. Proc. 2025-32).
2026 federal tax brackets
Rate
Single
Married filing jointly
10%
$0 – $12,400
$0 – $24,800
12%
$12,400 – $50,400
$24,800 – $100,800
22%
$50,400 – $105,700
$100,800 – $211,400
24%
$105,700 – $201,775
$211,400 – $403,550
32%
$201,775 – $256,225
$403,550 – $512,450
35%
$256,225 – $640,600
$512,450 – $768,700
37%
$640,600 +
$768,700 +
Source: IRS Rev. Proc. 2025-32 (TY 2026 inflation adjustments).
How taxable income is calculated
Federal tax brackets apply to taxable income, not to your gross salary.
The flow is:
Gross wages (Box 1 of your W-2)
− pre-tax 401(k), HSA, FSA, traditional pension contributions = adjusted gross income (AGI)
− standard deduction or itemized deductions = taxable income
Apply the bracket schedule above to taxable income → federal income tax owed
− tax credits (Child Tax Credit, foreign tax credit, etc.) = final federal tax
Standard deduction for F-1 OPT holders
As a nonresident alien, you generally cannot claim the federal standard deduction — except if you are from IN (treaty exception). Otherwise your taxable income equals your gross income minus only itemized deductions (state tax, mortgage interest, charitable gifts).
FICA: Social Security & Medicare
For your first 5 calendar years on F-1 OPT, you are exempt from Social Security and Medicare under IRC §3121(b)(19). After that, full FICA applies once you pass the substantial presence test.
When FICA applies, your employer withholds:
Social Security: 6.2% on the first $184,500 of wages (2026 wage base)
Medicare: 1.45% on every dollar of wages, with no cap
Your employer pays a matching 6.2% + 1.45% on top — total payroll tax cost to the employer is
7.65% of your wages up to the cap. The employer match isn't withheld from your check.
Worked example: $100,000 single filer
Suppose you earn $100,000 on F-1 OPT and qualify for the standard deduction.
Your taxable income is $100,000 − $16,100 = $83,900. Walking the brackets:
10% on the first $12,400 = $1,240
12% on the next slice up to $50,400
22% on the remainder up to $83,900
Total federal income tax owed: $13,170 — an
effective rate of 13.2% on your $100,000 gross.
This is before FICA (which you are exempt from) and
before any state income tax.
Why this matters for F-1 OPT planning
The interaction of (1) residency status, (2) standard-deduction eligibility, and (3) FICA
exemption means two F-1 OPT holders earning the same gross salary can have very different
take-home pay. The calculator above models all three correctly for tax year 2026.
Frequently asked questions
Specific to this visa, state, and salary. Sourced to IRS, SSA, and state DOR.
Are F-1 OPT students exempt from FICA?
Yes — F-1 students are exempt from Social Security and Medicare on wages earned for services allowed by their visa, for the first 5 calendar years they are in the US. After that, if they remain in F-1 status and pass the substantial presence test, FICA begins to apply. Source: IRC §3121(b)(19), IRS Pub 519.
Can F-1 OPT students claim the standard deduction?
Generally no — as nonresident aliens, F-1 students cannot claim the federal standard deduction. The major exception: students from India can claim it under Article 21(2) of the US-India income tax treaty.
What if my employer withheld Social Security and Medicare from my paycheck?
If you are FICA-exempt (first 5 calendar years on F-1) but your employer withheld FICA in error, request a refund first from your employer. If the employer cannot or will not refund, file IRS Form 843 with Form 8316 to claim the refund directly from the IRS.
Can F-1 OPT students file jointly with a spouse?
Generally no — nonresident aliens cannot file Married Filing Jointly. Limited exceptions exist when the spouse is a US citizen or resident alien and you elect to be treated as a resident under §6013(g).