Hi...

I have filed 1040NR-EZ with the 8843 form last year as i did not pass the presence test. But this year I am a Resident for the tax purposes. SO I will be filling 1040 forms. I have 2 questions

1) I wanted to know are there any deductions(standard+Itemized) that I can claim? I am citizen of India. For last year I cliamed (some 8500 total) in deductions. SO this time what are my deductions.

2) While filling taxes as i see there are medicare and SSN taxes in the W2. Are these also part of the total taxes? eg. when we look at the tax list example for 40000-41500 we have to pay a tax of 7000. Does this 7000 a sum of federal tax+SS tax+medicare tax or is it just the federal tax.

Thanks for your time and patience to answer the above questions

AtlantaTaxExpert

Verdict:

1) Your personal exemption is $3,200 and your standard deduction is $5,000. If your itemized deductions (local and state taxes withheld, charitable donations, property taxes paid, real estate taxes and mortgage interest paid if you own a home) exceed $5,000, then you should itemize.

2) Social Security is a flat 6.2% tax assessed on the first $90,000 of income. After you hit $90,000, no more taxes are withheld. Medicare is a flat 1.45% yax assess on all earned income with no cap.

I cannot answer if the $7,000 included the SS and Medicare, because I do not know enough about your deductions.

verdict

Thanks for your reply.

I called the IRS and found out that my federal tax are the only one which counts for my total tax.

Thanks.