Qualifying nonresident J-1 researchers can be exempt from Social Security, Medicare and federal unemployment taxes on their U.S. wages.

NOT SO FUN FACT: Universities can avoid Social Security, Unemployment Insurance and Medicare payroll taxes on qualifying J-1 researchers who are nonresidents for tax purposes.

— Inspector General Anthony D'Esposito (@USLaborIG) October 5, 2026

Fact-check: True, with a catch. The IRS says qualifying nonresident J-1 researchers can be exempt from Social Security and Medicare taxes, and their wages are also exempt from federal unemployment tax (FUTA). The exemption generally applies while they remain nonresident aliens and the work is directly connected to their J-1 purpose.

https://www.irs.gov/individuals/international-taxpayers/alien-liability-for-social-security-and-medicare-taxes-of-foreign-teachers-foreign-researchers-and-other-foreign-professionals

End the J-1 program too.