Ask Experts Questions for FREE Help !
Ask
    ashwinvx's Avatar
    ashwinvx Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 15, 2012, 01:00 PM
    Indian student on OPT in California
    Hi I'm an Indian student on OPT. My pay is 75,000 per year. I'm single. This is the pay slip for 2 weeks.

    Gross pay: 3,125.00

    Standard Deductions:
    -----------------------------------------
    Federal Income: -514.27
    Social Security: -131.25
    Medicare: -45.31
    California State Income: -186.47
    California State DI: -31.25
    ------------------------------------------
    Net Pay: 2,216.45

    I got to know that as I'm non-resident alien I'm not liable to pay Social security, medicare taxes. So, I'll ask my employer for refund and ask him not to deduct them from my pay from now on.

    How much will I lose in taxes? How much of it will I get in returns? According to the Indo- US treaty will I get any tax benefits? I heard I'll be paying less taxes than someone on H1-B visa. Is that true?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 15, 2012, 03:57 PM
    You are paying significantly less than an H-1B visa holder in taxes because of your FICA (Social Security and Medicare) tax exemption.

    You get to claim the standard deduction of $5,800 due to your Indian student status under Article 21(2) of the U.S.-India Tax Treaty.
    ashwinvx's Avatar
    ashwinvx Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Feb 15, 2012, 04:37 PM
    Thanks for responding. So, I'll be paying around $1500 in taxes(Federal income, California state income, California state DI)every month. So, it will total to $18000 per year. So, you mean I'll get $5,800 back as standard deductions.
    Can I ask my employer to cut lower money from my paycheck so, that I don't have to wait for an year for refund? Also if get my H1-B visa will I be liable to pay FICO taxes and won't be eligible to claim standard deductions of $5,800.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 16, 2012, 09:42 AM
    The standard deduction of $5,800 reduces your INCOME by $5,800, not your TAX. You are eligibel for it whether your visa is F-1 or H-1B at the end of 2012.

    If you are SINGLE, the most allowances you can claim on the W-4 is ONE (special IRS rules for foreign nationals). If you are MARRIED, the most you can claim is TWO.
    fmajid_1's Avatar
    fmajid_1 Posts: 1, Reputation: 1
    New Member
    		  
    #5

    Feb 20, 2013, 01:32 PM
    I am an OPT student and had an paid internship last year. Do I get back tax money from my federal and state tax deduction? If yes then what percentage of the deducted amount I am going to get back?

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Feb 20, 2013, 02:39 PM
    Depends on HOW MUCH you earned in the internship.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

I am OPT Student (Indian) who works in California. I would like to know my returns [ 5 Answers ]

I have a federal Income tax withheld amount of 1185.16 3059.14 (two different companies I worked for in California). I also have a State withheld of 335.22 960.34. Can someone help me figure out what my returns would be on federal and state

Indian student OPT Tax information [ 6 Answers ]

I need help with tax withholding and want to know if somebody could help me with it. I just received my first weekly pay check (it had just 3 working days). I am an Indian national (been in US < 5 years) and working on OPT in California. Here are the details: Earnings: $587.50 Fed...

F-1 Student (OPT Status) - Indian Tax Requirement [ 1 Answers ]

Hi, I am currently working in US on OPT period under the F-1 Visa Category. I am paying whatever taxes I am supposed to pay in US(except Social Security and medicare). I was not sure about whether I have to file my taxes back in India as well ? If I have to file the taxes in India then based on...

Form 1040NR Vs 1040 for indian Student on F1/OPT [ 1 Answers ]

I am an Indian Student. During 2008, I was on F1 status and worked from July 08 to Dec 08 on OPT. Is there any way I can choose to file 1040 (for resident aliens) instead of 1040NR (for non resident aliens). The reason I am asking this is because I want to claim the following: 1. Married...

Indian - OPT - State change - Student loan Claim [ 1 Answers ]

Hello, To any one answering these 3 question, I would appreciate it as it is of immense significance to me, I am late filing Taxes for 2006. Thank you :) Questions for 2006 TAX return F1 - 12/20/03 - 1/15/07 OPT - 1/15/06 - 1/15/07 - total W2 income $ 11600 (only income in 2006) Q1) I...

View more questions Search