WeVote
Log In

Bill

Bill

HR 8972

OPT Fair Tax Act

119th Congress Introduced by Glenn Grothman

The OPT Fair Tax Act would exclude OPT employment by F–1 students from FICA and Social Security payroll taxes.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 8972

Purpose and intent

  • The OPT Fair Tax Act aims to clarify how Optional Practical Training (OPT) for F–1 visa holders is treated for tax purposes.
  • Specifically, it would exclude OPT employment performed by F–1 nonimmigrants from being counted as employment for purposes of the Federal Insurance Contributions Act (FICA) and the Social Security Act payroll taxes.

Key provisions and changes

  • Federal Insurance Contributions Act (FICA) (Internal Revenue Code):

    • Section 3121(b)(19) is amended to state that employment while an F–1 student is participating in OPT shall not be treated as FICA-covered employment.
    • The bill changes the current wording to include an explicit exception for OPT participants, ensuring OPT work is not subject to FICA payroll taxes.

  • Social Security Act:

    • Section 210(a)(19) of the Social Security Act is amended with a similar exception, specifying that OPT employment performed by an F–1 nonimmigrant is not subject to Social Security payroll taxes.

  • Effective date:

    • The amendments apply to services performed in calendar months beginning after the date of enactment of the Act.

Who or what would be affected

  • F–1 visa holders currently on Optional Practical Training.
  • Employers who hire F–1 students under OPT, as their payroll tax withholding for OPT wages would be altered to exclude these wages from FICA and Social Security payroll tax obligations.
  • Federal tax administration and collections related to FICA and Social Security would adjust to reflect OPT wages as tax-exempt under these programs.

Procedural and timeline aspects

  • The bill was introduced May 21, 2026, by Representative Glenn Grothman and referred to the House Committee on Ways and Means.
  • If enacted, the changes would take effect for calendar months beginning after enactment (i.e., a prospective effective date with no retroactive application).

Additional context

  • The bill is titled the “OPT Fair Tax Act.”
  • It explicitly targets the treatment of OPT wages under two major payroll tax regimes, aiming to reduce or remove FICA and Social Security tax liability on OPT employment for F–1 students.
  • The text indicates no other changes to income tax withholding or other visa-related tax provisions beyond the FICA and Social Security tax exemptions for OPT work.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.