The OPT Fair Tax Act would exempt foreign students on F-1 visas who participate in Optional Practical Training (OPT) from paying Social Security and Medicare payroll taxes. Currently, these students' wages are subject to federal payroll taxes even though they typically cannot collect Social Security benefits. The bill would change this by specifically excluding OPT work from the definition of taxable employment under both the Federal Insurance Contribution Act and the Social Security Act. The changes would take effect for work performed in calendar months after the bill becomes law. This legislation primarily benefits international students seeking work experience in the United States after graduation, allowing them to keep more of their wages.
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