HB8972, titled the OPT Fair Tax Act, would amend federal tax law to treat certain optional practical training (OPT) work performed by F-1 visa holders as employment subject to Federal Insurance Contributions Act (FICA) and Social Security taxes. Under current law, some services performed by F-1 nonimmigrants are exempt from these payroll taxes; this bill would carve OPT participants out of that exemption.
The bill specifically amends both the Internal Revenue Code and the Social Security Act so that the existing exemption for certain nonimmigrant student services would no longer apply to F-1 visa holders participating in OPT. The change would apply prospectively to services performed in calendar months beginning after enactment, meaning employers and affected students would need to begin payroll tax withholding and contributions after the effective date.
If enacted, the bill would change federal tax treatment for employers and F-1 students in optional practical training by requiring Social Security and Medicare payroll taxes on OPT wages. It would amend Section 3121 of the Internal Revenue Code and Section 210 of the Social Security Act, narrowing the current exemption for certain nonimmigrant student services and aligning OPT work more closely with ordinary employment for FICA purposes.
There is limited public legislative sentiment available because the bill was only introduced and referred to the House Committee on Ways and Means, with no recorded votes or committee transcript excerpts provided. Based on the bill’s title and structure, the measure appears to be framed as a tax fairness proposal by its sponsor, but no broader support or opposition is documented in the available record.
The main point of contention is likely to be whether OPT participants should be treated like other workers for payroll tax purposes or remain exempt as part of the student visa framework. Supporters would likely argue the bill creates parity and increases Social Security and Medicare contributions, while opponents may contend it raises costs for international students, employers, and universities, and could make the OPT program less attractive. No specific objections or endorsements are recorded in the provided materials.