Hi everyone,

I have some questions about my F1-OPT tax. I know that from the IRS website, I am exempt from Social Security and Medicare tax with the less than 5 years rule. But I know I am subject to Federal and State Taxes.

My questions are the followings:

1. How much Federal Income Tax that I am subject to pay and how much for Witholding. I do not understand what rate or amount for the Federal Witholding that I am subject to. Is it base on my monthly gross income or annual gross income. Is it different from state to state. Where can I get the information from the IRS website or from other sources.

2. Do I subject to other taxes beside the Federal and States Taxes for my employment.

3. Is it I need to file Form 1040 NR and Form 8843 assume I file single, standard deduction with no other personal allowances. What other forms I also need to file.

4. If I need to file resident aliens later because of more than 5 years, how much Social Security and Medicare tax that I am subject to. Where can I get the rates and amouts information from the IRS website and other sources.


Thank you so so much for your time for reading and answering my questions.
Thanks.

1) Ultimately, your federal income tax rate is based on your overall annual taxable ncome. More than likely, you are squarely in the 15% tax bracket. As for the state rate, that depends on the state, which you did not identify.

2) There are no other taxes for you to pay unless you live in a county/city that has an income tax, or unless you live in a state that assesses a state unemployment insurance (SUI) or state disability insurance (SDI) tax. California and New Jersey BOTH assess such taxes.

3) As a non-resident alien, Forms 1040NR-EZ and 8843 are the minimum filing requirement. Form 1040NR is required only if you have some extra deductions, like moving expenses or student loan interest. The standard deduction applies ONLY IF you are an Indian student. Otherwise, you must itemize and, if there is a treaty exemption under a tax treaty, claim the student treaty exemption.

4) Right now, the Social Security rate is 6.2% on the first $102,400 earned. Right now, Social Security is capped at $102,400, but that may change. Medicare is NOT capped, but is only 1.45%.

Thank you very much for your answer. It is very helpful.

But I have another question. I just start working this month in illionis and my income is $750 for the whole month because I will go back for chirstmas holiday. How much I need to pay for federal income tax. Is it still 15%. How much is my federal witholding for this month. I know I need to pay 3% of the state income taxes.

On your nonresident tax return (federal), you get $3500 exemption deduction plus deduction as per tax treaty. So you do not have any tax if your income is below this amount.

Further, if no state or federal taxes were withheld for December, you do not even have to file a tax return for either the IRS nor the state of Illinois.

If income taxes WERE withheld, you may want to file to get those withheld taxes back, but the amounts may be so small as to not be worth the effort.