| pMedical residents are doctors, not students, when it comes to paying federal taxes, the Supreme Court ruled unanimously Tuesday in a decision that disappointed the University of Minnesota and the Mayo Clinic, who have been fighting the issue in court for years./ppAn opinion by Chief Justice John Roberts upholds an Internal Revenue Service requirement that medical residents pay Federal Insurance Contributions Act taxes./ppThe University of Minnesota and Mayo have argued that medical residents are students who qualify for a long-standing exemption from paying those taxes. Full-time students who work are generally exempt./ppBut the Supreme Court says medical residents -- who typically work 50 to 80 hours a week -- don't qualify./ppThe decision ends decades of legal back-and-forth and could cost medical schools $700 million in federal taxes annually. The employer and employee each pay half the tax. The University of Minnesota estimates that the U and its medical residents pay about $4.3 million a year./p |
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