Last year, North Shore-LIJ Health System and its member hospitals filed claims for FICA tax refunds for qualifying North Shore-LIJ medical residents, including fellows in training programs. We are pleased to report that the IRS has begun to approve the Medical Residents FICA Refund Claims, and is working on issuing refund checks to North Shore-LIJ Health System and its member hospitals.
However, before refunds are distributed to residents that submitted a timely consent form, interest calculations must be formulated for each individual, and the process could take approximately two to three months from the time refunds are received from the IRS. Please note: If you filed a refund claim with the IRS on your own behalf, North Shore-LIJ Health System and its member hospitals will not be refunded by the IRS for those periods. You must contact the IRS for information on your claim. For eligible residents already in social security benefit status, the IRS has suspended these refunds to allow time to communicate the ramifications of receiving a refund.
Federal Taxes and your FICA Refund
If eligible, your refund will include your share of the FICA taxes plus interest. The refunded FICA taxes are not taxable; however, the interest portion of the refund is taxable to you. The interest is taxable whether or not you receive a Form 1099-INT, Interest Income, and must be reported on your individual income tax return. It is important to note that if the interest totals $600 or more, North Shore-LIJ Health System and its member hospitals will file Form 1099-INT with the IRS and furnish a copy to you. One form will be issued for all accumulated interest for the year in which you receive your refund from the health system.
North Shore-LIJ Health System and its member hospitals are required to file a W-2 c, Corrected Wage and Tax Statement, with the Social Security Administration (SSA) for each calendar year in which you receive a refund of FICA taxes, and provide a copy to you. This form will show a reduction in your earnings for social security coverage purposes in an amount equal to the wages for which you received a FICA refund. Social security benefits are based on your earnings in your working lifetime. If you want information about the effect on your social security benefits, please call SSA directly: 800-772-1213.
Refund checks will be mailed directly from Gilardi & Co, LLC, and will include a cover letter explaining the claim amount and interest received on the claim, Form 1099-INT, if interest is $600 or greater, and a copy of Form W-2c for your records. If your contact information has changed since submitting your consent form, please notify Gilardi &Co, LLC at the following website: www.gilardi.com/nslijfica
Please continue to refer to this website for periodic updates about the refund process.