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Home > Money & Services > Taxes   »   Hot Tax Tips and Info from our Tax Expert Mukata

 
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Old May 28, 2008, 04:44 AM
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Hot Tax Tips and Info from our Tax Expert Mukata

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Old May 28, 2008, 04:45 AM   #2  
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1. A Must Read For Visa Holders
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Old May 28, 2008, 04:48 AM   #3  
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A Must Read For Visa Holders

You are in the U.S. on various visas like F1, M1, J1, J2, H1-B, H4, L1-B, L2, E2, E3, G4, B1, B2. If you have an income or even getting payments from foreign sources, you may be required to file your tax return. If you meet the filing requirement, then you must file the tax return.

Depending upon your visa and the number of days in the U.S. you will file non-resident, dual status or resident tax return. On the resident tax return, you will get standard deduction while on the nonresident or dual status tax return you will only get itemized deductions and deductions as per the tax treaty. Your choices are different if you are married than if you are unmarried. A proper or correct tax return means paying less taxes and not getting into any problem with tax authorities or visa authorities.

Most of the states in the U.S. have income tax, which means that you must file federal tax return as well state tax return. Then if you work in more than one state, you must file two or more state tax returns. If you live in a different state and work in a different state, you must file tax returns for both the states. But that does not mean that you will be paying taxes on an the same income to two different states. In some situation, you will get credit from one state for the taxes paid to another state. Your employer may deduct taxes for a state in which you never lived or worked. In that case, you will file the state tax return to get the refund.

Filing tax returns is mandatory. If you don’t file, you will get into problems. If you file, but do not file the proper form, then you may end up paying much higher taxes and even pay interest and penalty.

Filing taxes in the U.S. is complicated. Your income may be reported on form W2, 1099-Misc or 1042-S, and some of the incomes may be non-taxable as per tax treaty. Every type of income requires different treatment. Then your income may or may not be subject to FICA taxes. You may be able to deduct moving expenses and many job related expenses. In a large number of cases, it is better to go for professional help to save on taxes and avoid problems.

Do not file your tax return at the last minute without doing home work. Take the help of Askmehelpdesk forum. Post your questions here and get prepared. Incorrect filing means extra taxes and extra problems. Askmehelpdesk is there for your service.
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