International students face new payroll taxes on work visas
H.R. 8972 — OPT Fair Tax Act · Filed by Glenn Grothman (R-WI) · Introduced May 21, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill amends tax law to treat Optional Practical Training (OPT) — work performed by F-1 international students in the U.S. — as employment subject to Social Security and Medicare payroll taxes (FICA). Currently, F-1 students on OPT are exempt from these taxes. The bill would require both employers and OPT participants to pay FICA taxes on OPT wages, effective immediately upon enactment.
Why we flagged it
The bill is a straightforward amendment to tax code that reclassifies OPT work as covered employment for FICA purposes. It is not a subsidy, carve-out, or deregulation — it is a definitional change that expands tax coverage and social insurance eligibility.
What the text implies
- OPT workers gain Social Security credits and Medicare eligibility, but only if they remain in the U.S. long enough to vest; many F-1 students return home after OPT, potentially forfeiting benefits.
- Employers of OPT workers face new payroll tax liability (employer FICA match), which may reduce hiring of OPT workers or compress OPT wage offers.
The full analysis lists 4 implications of this text.
Who stands to gain
Social Security Trust Fund (increased payroll tax revenue); Medicare Trust Fund (increased payroll tax revenue)