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FICA and MEDFICA were deducted from my income this fiscal year by error by employer. When I notified my employer they immediately notified the payroll agency and stopped deducting those taxes from the next paystub. However, regarding claim they said they will just give me a letter saying that they would not be refunding this amount and I should claim directly from IRS as stated in instructions with Form 843.

Now, there was someone who said that getting those taxes from IRS sometimes takes a lot of time and is a big hassle and I might not even get it. Let me know how to proceed.

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  • Have you considered even bothering to look at what IRS Form 843 looks like and how much trouble it might be to fill it out before asking here? I would suggest that if the amount is relatively small and the bother of filling out the form is too much (in your estimate, don't rely on what someone else told you), do nothing. If that money is large enough to be hassling about, then fill out the form. Your choice. Nov 29, 2014 at 22:23
  • Thanks @DilipSarwate for your quick response. I was indicating the time it takes for the money to be refunded not the time for filling the form. Also, the possibility that it might not be refunded from IRS because it's a mistake of my employer not IRS. That was my main question. Or it's pretty sure that it will be refunded? Nov 29, 2014 at 22:48
  • The IRS usually has no problem with returning money that they should not have collected. How quickly they return it depends on how well you document the mistake and whether you get the form to them when they aren't overloaded with annual tax returns, so I'd say start on it now.
    – keshlam
    Nov 30, 2014 at 1:51
  • Where's the question?
    – user102008
    Dec 1, 2014 at 6:37
  • @keshlam thanks so much. Just a follow up question, you said "start on it now" than to wait by the time annual tax returns are processed. So can they refund me separately for this "now" or only the application processing gets fast when I apply for the annual tax returns again in early 2015. (considering my FICA paperwork is already with them which was sent earlier) Dec 2, 2014 at 3:38

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I think you got pretty clear instructions from your employer on how to proceed. File the form. You were very clear on that the employer will provide you with a letter that says that the employer is not going to refund you. That is the requirement for filing the form 843 in this case.

Read the instructions carefully and fill the form properly. Don't forget to attach all the necessary documentation (that being that letter from the employer, proof of your exempt status, etc), and mail it to the right place. You'll get your money back.

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