I came to USA with a H1B visa in May, 2005. someone told me that person with H1B visa doesn’t pay the state and federal taxes at the first three years. but the director of Human Resources in my center told me that I will have to start paying federal and state taxes on May 1st. Can you help me and tell me what shall I do? Do I really need to pay my tax from May 1st, 2006?
thanks

taxsearcher

Your HR director is correct. You are a resident and must pay taxes on your worldwide income.

AtlantaTaxExpert

I agree with TaxSearcher's assessment IF you have no worldwide income.

If you have worldwide income, then you should file as dual-status tax return. This is one of the rare instances where filing dual-status may save you money.