Court: Are medical residents students or employees

WASHINGTON (AP) - The Supreme Court will decide whether student doctors are students or employees when it comes to collecting Social Security taxes.

The high court on Tuesday agreed to hear an appeal from the Mayo Clinic, which says the IRS shouldn't have made it collect the taxes.

Medical residents, who are studying to be doctors, routinely work in hospitals and pay income taxes. But Mayo Clinic officials say residents fall under a Social Security tax exemption for student employees whose work is part of their education.

The Treasury Department changed its rules to take away the student for medical students who work more than 40 hours per week.

Mayo Clinic officials want the court to restore the student exemption for medical residents.