Quote Originally Posted by Robert Henry View Post
David Merrill, it seems perhaps I have misunderstood. I was under the impression that attempting to get a refund for ALL deductions (Fed + State SDI/Med in addition to actual TAXES withheld) was asking for trouble. After all, i'm assuming these don't get paid to IRS (or do they?) so why would IRS be expected to re-imburse for them? Also, would effectively "opting out" of SS in this fashion negate the ability to claim the benefits that have already been paid in to the system from half a life of being ignorant of redemption?

Any clarification you can offer would be greatly appreciated!
I can't speak for David Merrill, but I will give you my two cents worth: I have observed that claiming refund of FICA on a tax return often leads to your return being routed to the "frivolous" department in Ogden Utah, simply because they are confused by the numbers and think you are claiming more refund than you paid in tax.

IRS is responsible for issuing refunds of FICA tax where appropriate. The Form 843 can be used to properly request a refund of "erroneously collected" FICA and is not subject to being declared "frivolous" under IRC 6702.

As for SSA benefits: under current rules, you are vested after 40 qualifying financial quarters of making contributions. The only advantage to continuing to contribute to FICA might be to increase your eventual (and very theoretical at this point) retirement benefit amount, as they base your benefit amount on your highest 40 quarters of earnings.