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Can You Opt Out of Paying Social Security Taxes?

Can You Opt Out of Paying Social Security Taxes?

When you received your first paycheck, you were probably in for a rude awakening. You knew you’d have to pay taxes. You likely had no idea how many taxes you really had to pay for living in the United States.

Many people don’t believe the Social Security system will be around to pay them when they get old. There is evidence that says otherwise but some people still want to opt out of paying Social Security taxes.

Ways You Might Be Exempt From Paying Social Security Taxes

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  • Exemption for qualifying religious groups
  • Certain nonresident aliens
  • Foreign government employees
  • Temporary student exemption in certain cases
  • Other exemptions

Exemption for Qualifying Religious Groups

In order for this exemption to work, your religious group must have been in existence at the end of the year in 1950.

The group must have provided its members with a reasonable standard of living ever since that date. If your group meets these requirements and opposes accepting Social Security benefits, you can apply for an exemption.

To do that, you’ll use IRS Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits.

Certain Nonresident Aliens

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If you’re a temporary foreign student, professor, teacher or another certain educational worker, you may be exempt from paying Social Security taxes.

It also lists when those exemptions apply. If you’re a nonresident alien, check this list and consult a tax professional for more information.

Foreign Government Employees

If you’re an employee of a foreign government you generally don’t have to pay Social Security taxes on income related to your official responsibilities. Continue reading