Medical Students are Obligated to Pay Taxes

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The US Supreme Court has fnally settled a long-standing dispute in tax law – are medical students who are being trained and receive allowances while pursuing their studies in university hospitals students who work or workers who study? The answer to that question would determine whether it is mandatory by law for them to pay FICA taxes.

The verdict of the court is that medical students are workers who study and therefore are obligated to pay FICA payroll taxes for Social Security and Medicare. This judgment was made in a case that involved doctors in training at Mayo Clinic and the University of Minnesota Medical Center. The court ruled a unanimous 8-0 decision stating that medical residents are not entitled to the student exemption from paying FICA taxes because they work more than 40 hours a week. Chief Justice John Roberts stated that the IRS ruling on this is a “reasonable construction” of what Congress intends for tax exemptions for students.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Darrin Mish, Tampa Tax Attorney, The Law Offices of Darrin Mish, P.A. | Attorney Advertising

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