Explained: What Indian students in the US need to know about FICA tax and OPT in 2025
Indian students on OPT in the US currently benefit from FICA tax exemption, saving thousands annually. However, proposed US legislation in 2025, including the OPT Fair Tax Act, aims to eliminate this crucial benefit. Such changes would significantly reduce graduates' take-home pay and increase hiring costs for companies, profoundly impacting financial planning and career prospects for many.
Indian students on OPT in the US currently benefit from FICA tax exemption, saving thousands annually. However, proposed US legislation in 2025, including the OPT Fair Tax Act, aims to eliminate this crucial benefit. Such changes would significantly reduce graduates' take-home pay and increase hiring costs for companies, profoundly impacting financial planning and career prospects for many.
