Hi,

I am on an L1 VISA, I would like to know what is the income tax deducted for an annual income of say 50K in Georgia ? and how is the tax returns done ?

thanks

As an L-1 visa holder, you are fully liable for all taxes, as indicated below:

- Social Security tax (6.2%) which is a flat tax levied against the first $90K of income ($97K for 2007).

- Medicare tax (1.45%) which is a flat tax levied against all wages.

- GA Income tax ($940 tax against the first $20,000, then 6% on every dollar OVER $20K).

- Federal income tax is based on a progressive assessment that starts at 0%, then 10%, then 15%, then 25%, then 28%, topping out at 38%.

On $50,000, your GA income tax liability will be $2,513 and your federal income tax liability will be $7,281.

You can do the math for Social Security and Medicare taxes. This assume you are single with no dependents.

- GA Income tax ($940 tax against the first $20,000, then 6% on every dollar OVER $20K).

On $50,000, your GA income tax liability will be $2,513 and your federal income tax liability will be $7,281.




Is there some deduction/exemption being included here?

On $50K as per your formula above, $940 + 30K*0.06 = $2740.

Assuming a single person, how would you arrive to the number($2,513) above?

What I'd like to figure out is that if my total gross is going to be $25K and I arrived in US in September on a L1, then how much is the tax liability?

I've been through a dozen sites now since morning and my brain's totally befuddled with contradictory information!

Thanks!

Yes, there is a personal exemption, plus a standard deduction, on the GA tax.

You did not share with me that you arrived in September. That changes things.

You need to file a dual-status return for 2006 to avoid being taxed on ALL of your income.

Download IRS Pub 519 from www.irs.gov and read chapter 5.

Hi,
Thanks a lot for the detailed info.
Can you please let me know if we would be eligible to get some amount as Tax refund during Tax filing ?

Thanks

If you are like most people, you are over-withholding, which measn you probably WILL get a tax refund.

BTW, this is NOT a good thing, as ANY refund is an interest-free loan to the U.S and Georgia governments.

As for filing your return, contact me at david.kempe@<hidden>, and I will cover in detail how I can help you file your return.