Tax season is upon us, but the road ahead doesn’t have to feel daunting. We’re breaking down the terms, forms and deadlines you need to know to responsibly file your taxes in 2023 – starting with FICA.

Confused or confounded about the money taken out of your paycheck every week? Wondering what Social Security and Medicare taxes have to do with you? Here’s what to know about the U.S. federal tax.

What is FICA?

FICA stands for Federal Insurance Contributions Act; it’s the federal payroll tax.

A total of 7.65% of your gross wages goes to federal taxes. Your employer matches these percentages:

• 6.2% to Social Security

• 1.45% to Medicare

Individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9% in Medicare taxes.

These taxes from your paycheck fund Social Security and Medicare programs, including retirement, disability, survivors’ and children’s benefits.

Tax season 2023: Everything you need to know to file taxes in 2023

Tax code glossary: What are IRS codes 826, 846, 570 on your 2022 tax transcript?

Is FICA tax the same as Social Security?

No, FICA and Social Security taxes are not the same, but they’re related. Social Security taxes are the 6.2% taken out of your paycheck each month (up to $160,300, the 2023 taxable maximum) while FICA refers to the combination of Social Security and Medicare taxes.

Just married: Here's whether you should file taxes jointly or separately

What is income tax?: How it works, different types and more

Who is exempt from FICA?

Certain wages are exempt from FICA taxes. For example, FICA taxes do not apply to services performed by employed students, the Internal Revenue Service says. Organizations are deemed a “school, college or university” if their function and the student’s relationship with the employer are primarily educational.

According to the IRS, nonresidents are generally liable for Social Security and Medicare taxes. These groups of people are exempt from FICA taxes:

• A-visa holders: Employees whose salaries are paid in their official capacity as foreign government employees

• D-visa holders: Crew members of a ship or aircraft whose employer or vessel is foreign or if the services are performed outside of the U.S.

• F-visa, J-visa, M-visa, Q-visa holders: Employees who perform services in the U.S. allowed by the United States Citizenship and Immigration Services, like on-campus student employment, certain off-campus student employment, on-campus employment or practical training student employment

• G-visa holders: Employees of international organizations who are paid in their official capacity in an international organization

• H-visas: Nonimmigrant residents of the Philippines who perform services in Guam or nonimmigrants performing temporary agricultural labor

Other paid wages exempt from Social Security and Medicare taxes include compensation to:

• Duly ordained, commissioned or licensed ministers of churches

• Children under the age of 18 employed by their parents

• Student nurses if paid under certain conditions

Self-employed individuals are not exempt from Social Security and Medicare taxes, but they do have a different, higher rate known as “self-employment tax” because there is no employer match. The total tax rate is 15.3%, broken down into two parts:

• 12.4% to Social Security

• 2.9% to Medicare

2022 and 2023 tax brackets: Know where you fall on the list

30% sales tax? Abolishing the IRS?: What the FairTax Act of 2023 would do

Do I get my FICA tax back?

You can get a refund if your Social Security taxes were withheld in error from exempt pay. You should get a refund in full from your employer, otherwise, you can file a claim with the IRS.

More of your 2022 tax season questions answered

• Tax season 2023 officially started: Here are key deadlines to keep in mind

• File your taxes early for a chance to double your refund money with Jackson Hewitt

• 1099, W-4, W-2, W-9, 1040: What are these forms used for when filing your taxes?

• 2023 tax season guide for new parents: What to know about the Child Tax Credit, EITC and more

• IRS may owe you from 2020 taxes. Here's why and what you need to do to find out if you're owed

• What is OASDI tax on my paycheck? Here's why you and your employer pay this federal tax

• Do you have to report crypto on taxes? Yes. Here's what you should know about form 8949

• What is a 1098-E form? What you need to know about the student loan interest statement

• Tax season 2023: What exactly is the mileage rate? There's more than one.

• Is it better to pay someone to do your taxes or do them yourself? We'll help you decide.

• What is income tax? What to know about how it works, different types and more

• Is Social Security income taxable by the IRS? Here's what you might owe on your benefits

• Companies can deduct full cost of business meals on 2022 tax returns

• Who has to file a tax return: It's not necessary for everyone. Here are the rules.

• The Inflation Reduction Act carves out an EV tax credit for 2023. Does Tesla qualify?

This article originally appeared on USA TODAY: FICA explained: Social Security and Medicare tax rates to know in 2023