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I just wonder which is the net resident salary after tax, have residents to pay less taxes being considered students in training?
Resident salary
- Thread starter UAB
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Go to FRIEDA, search for the programs you're interested in, and you'll find most programs' salaries and benefits listed, if the program has answered FRIEDA's questionnaire.
As for taxes, it's earnings, therefore it's taxable. Can't imagine the government giving a tax break for residents... they didn't when we worked fulltime as undergrads...
FRIEDA <a href="http://www.ama-assn.org/ama/pub/category/2997.html" target="_blank">http://www.ama-assn.org/ama/pub/category/2997.html</a>
As for taxes, it's earnings, therefore it's taxable. Can't imagine the government giving a tax break for residents... they didn't when we worked fulltime as undergrads...
FRIEDA <a href="http://www.ama-assn.org/ama/pub/category/2997.html" target="_blank">http://www.ama-assn.org/ama/pub/category/2997.html</a>
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For what it's worth, here's something that may or may not be true:
In 1998, the 8th Circuit Court of Appeals held in The State of Minnesota vs Apfel 151F.3d742 that medical residents are students and therefore exempt from paying the FICA portion of their income tax. This case upheld a lower court opinion. In accordance with the opinion of the Court of Appeals, I am hereby amending my "year" year Federal Income Tax return to reflect my overpayment of FICA taxes in the amount of (insert line 11B from 1040X) and request a refund of this amount. I am aware of the fact that the Internal Revenue Service does not plan to challenge or seek further review of the opinion in the above referenced case. I am also aware of the fact that a coalition of major universities throughout the country have discussed this issue and the above referenced opinion with officials of the Internal Revenue Service including the Chief Counsel and it is my understanding that refunds of previously withheld FICA taxes have been approved.
In 1998, the 8th Circuit Court of Appeals held in The State of Minnesota vs Apfel 151F.3d742 that medical residents are students and therefore exempt from paying the FICA portion of their income tax. This case upheld a lower court opinion. In accordance with the opinion of the Court of Appeals, I am hereby amending my "year" year Federal Income Tax return to reflect my overpayment of FICA taxes in the amount of (insert line 11B from 1040X) and request a refund of this amount. I am aware of the fact that the Internal Revenue Service does not plan to challenge or seek further review of the opinion in the above referenced case. I am also aware of the fact that a coalition of major universities throughout the country have discussed this issue and the above referenced opinion with officials of the Internal Revenue Service including the Chief Counsel and it is my understanding that refunds of previously withheld FICA taxes have been approved.
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•••quote:•••Originally posted by mcwmark:
•For what it's worth, here's something that may or may not be true:
In 1998, the 8th Circuit Court of Appeals held in The State of Minnesota vs Apfel 151F.3d742 that medical residents are students and therefore exempt from paying the FICA portion of their income tax. This case upheld a lower court opinion. In accordance with the opinion of the Court of Appeals, I am hereby amending my "year" year Federal Income Tax return to reflect my overpayment of FICA taxes in the amount of (insert line 11B from 1040X) and request a refund of this amount. I am aware of the fact that the Internal Revenue Service does not plan to challenge or seek further review of the opinion in the above referenced case. I am also aware of the fact that a coalition of major universities throughout the country have discussed this issue and the above referenced opinion with officials of the Internal Revenue Service including the Chief Counsel and it is my understanding that refunds of previously withheld FICA taxes have been approved.•••••I wouldn't do this solo. From the AMA web site:
There are two approaches for filing and receiving a FICA refund claim. The first is to file a personal refund claim. The second is for the training institution to work collaboratively with its residents to pursue a FICA refund claim.
Residents are strongly advised NOT to pursue the claim individually. According to Jeremy M. Watkins of Arthur Anderson LLP, which is representing a large southern university on this matter,
"Many of you have contemplated personally filing for refunds using IRS Form 1040X. The IRS has specifically noted that this is an invalid procedure and has denied such claims. Certainly some individuals have received refund checks for such filings, but they stand in jeopardy under further IRS scrutiny."
Several websites appear to be encouraging residents to seek refunds using Form 1040X. While some residents have filed and received a refund, if the courts ultimately provide an unfavorable ruling on the issue, residents who have received a refund could be subject to repaying the refund to the IRS with interest and possibly penalties.
The recommended approach is for residents to work with their training institutions to pursue the refund. The first step is for the institution to file a "protective refund claim". This legal filing essentially places a hold on past FICA payments. Without this filing, the statute of limitations for seeking a FICA refund expires after three years. So, 16 April 2001 was the last day to file a protective refund claim for FICA payments made during the 1997 calendar year. Similarly, a protective refund claim for 1998 FICA payments must be filed by 15 April 2002. According to the November 2000 issue of the ACP Observer, more than 200 hospitals and training programs have filed protective refund claims.
The second step involves a process called "perfecting" the claim. The tax director of a major midwestern university program, who is helping the university pursue its FICA refund claim, comments,
"The next step in this process, which is far more complex and time consuming step than filing the protective refund claim noted above, is the process that is being referred to in the industry as "perfecting" the claim. Based on a letter ruling issued by the IRS last year on this topic, universities must provide the IRS with a great deal of detailed payroll and residency program information which will serve as the supporting documentation and legal basis for the refund claims."
Only a handful of training institutions from the Midwest and South appear to have pursued this secondary process.
All of the "big 5" accounting firms have reportedly engaged the IRS in discussing resident FICA refund claims on behalf of their client training institutions. Mr. Watkins noted,
"(T)he IRS has placed this issue as a priority for resolution. Several large institutions around the country have been selected as the test-cases by which the IRS should issue rulings as to which institutions could potentially receive refunds. The IRS hopes to make this determination by the end of 2001."
<a href="http://www.ama-assn.org/ama/pub/printcat/7067.html" target="_blank">www.ama-assn.org/ama/pub/printcat/7067.html</a>
•For what it's worth, here's something that may or may not be true:
In 1998, the 8th Circuit Court of Appeals held in The State of Minnesota vs Apfel 151F.3d742 that medical residents are students and therefore exempt from paying the FICA portion of their income tax. This case upheld a lower court opinion. In accordance with the opinion of the Court of Appeals, I am hereby amending my "year" year Federal Income Tax return to reflect my overpayment of FICA taxes in the amount of (insert line 11B from 1040X) and request a refund of this amount. I am aware of the fact that the Internal Revenue Service does not plan to challenge or seek further review of the opinion in the above referenced case. I am also aware of the fact that a coalition of major universities throughout the country have discussed this issue and the above referenced opinion with officials of the Internal Revenue Service including the Chief Counsel and it is my understanding that refunds of previously withheld FICA taxes have been approved.•••••I wouldn't do this solo. From the AMA web site:
There are two approaches for filing and receiving a FICA refund claim. The first is to file a personal refund claim. The second is for the training institution to work collaboratively with its residents to pursue a FICA refund claim.
Residents are strongly advised NOT to pursue the claim individually. According to Jeremy M. Watkins of Arthur Anderson LLP, which is representing a large southern university on this matter,
"Many of you have contemplated personally filing for refunds using IRS Form 1040X. The IRS has specifically noted that this is an invalid procedure and has denied such claims. Certainly some individuals have received refund checks for such filings, but they stand in jeopardy under further IRS scrutiny."
Several websites appear to be encouraging residents to seek refunds using Form 1040X. While some residents have filed and received a refund, if the courts ultimately provide an unfavorable ruling on the issue, residents who have received a refund could be subject to repaying the refund to the IRS with interest and possibly penalties.
The recommended approach is for residents to work with their training institutions to pursue the refund. The first step is for the institution to file a "protective refund claim". This legal filing essentially places a hold on past FICA payments. Without this filing, the statute of limitations for seeking a FICA refund expires after three years. So, 16 April 2001 was the last day to file a protective refund claim for FICA payments made during the 1997 calendar year. Similarly, a protective refund claim for 1998 FICA payments must be filed by 15 April 2002. According to the November 2000 issue of the ACP Observer, more than 200 hospitals and training programs have filed protective refund claims.
The second step involves a process called "perfecting" the claim. The tax director of a major midwestern university program, who is helping the university pursue its FICA refund claim, comments,
"The next step in this process, which is far more complex and time consuming step than filing the protective refund claim noted above, is the process that is being referred to in the industry as "perfecting" the claim. Based on a letter ruling issued by the IRS last year on this topic, universities must provide the IRS with a great deal of detailed payroll and residency program information which will serve as the supporting documentation and legal basis for the refund claims."
Only a handful of training institutions from the Midwest and South appear to have pursued this secondary process.
All of the "big 5" accounting firms have reportedly engaged the IRS in discussing resident FICA refund claims on behalf of their client training institutions. Mr. Watkins noted,
"(T)he IRS has placed this issue as a priority for resolution. Several large institutions around the country have been selected as the test-cases by which the IRS should issue rulings as to which institutions could potentially receive refunds. The IRS hopes to make this determination by the end of 2001."
<a href="http://www.ama-assn.org/ama/pub/printcat/7067.html" target="_blank">www.ama-assn.org/ama/pub/printcat/7067.html</a>
