Question
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Jan 8, 2008, 05:47 PM
| | New Member | | Join Date: Jan 2008
Posts: 1
| | | US tax payment for L1-B visa holders Hi
I am having L1 visa, working in MA state.
I came to US on Oct07, i heard if the total number of days is lessthan 183, no need to pay tax to US Govt. what is period of calculation for 183 days?
is it from April to March or how it is? | | | | | | |
Answers
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Jan 8, 2008, 07:04 PM
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#2
| | | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 9,873
| Oh, I beg to differ!
You MAY owe taxes for the money earned in this country from October 2007. It depends on your home country and the tax treaty, if any, plus how long oyu will be staying in the U.S.
So, what IS your home country?? |
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Jan 9, 2008, 03:30 AM
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#3
| | | Tax Expert
Join Date: Nov 2007 Location: CA
Posts: 2,048
| You must file tax return if you meet the filing requirement. Non residents must file if the income more than $3,400.
You can file nonresident form 1040NR or 1040NR-EZ if you earned more than $3,400 in 2007. If you earned less than $3,400 you don't have any federal tax. Then you can file to get refund of federal income tax withheld.
Also if you there is any tax treaty benefit, then you must file Form 8843. |
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Jan 9, 2008, 12:17 PM
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#4
| | | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 9,873
| MukatA:
I agree with all of your post except the last sentence.
The Form 8843 is for holders of the F/J/M/Q visas or for those who cannot leave the country due to a medical condition.
GV is here under a L visa, which is a work visa; he has no need to file Form 8843 unless he gets sick and cannot return to his home country when his visa expires. |
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Jan 9, 2008, 03:12 PM
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#5
| | Junior Member
Join Date: Jan 2008
Posts: 40
| Hello Sir
L1 Tax holders, less than 183 days need not pay Taxes , if they are returning to their home country, as they have a closer connection to the country, based on the closer connection test.
Hope this helps!
Save Taxes on H1B,OPT,F1 and other visas at VisaTaxes.com |
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Jan 9, 2008, 03:58 PM
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#6
| | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 9,873
| What VTE says is generally true, but you need to review the provisions of your country's tax treaty with the U.S. (if one exists) to get the specifics. |
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Jan 10, 2008, 12:41 AM
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#7
| | Tax Expert
Join Date: Nov 2007 Location: CA
Posts: 2,048
| Quote: | Originally Posted by AtlantaTaxExpert MukatA:
I agree with all of your post except the last sentence.
The Form 8843 is for holders of the F/J/M/Q visas or for those who cannot leave the country due to a medical condition.
GV is here under a L visa, which is a work visa; he has no need to file Form 8843 unless he gets sick and cannot return to his home country when his visa expires. |
I said "Also if you there is any tax treaty benefit, then you must file Form 8843." There is a word "if." And I added this line in my reply only because you had mention about tax treaty benefits. |
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Jan 10, 2008, 01:04 PM
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#8
| | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 9,873
| I believe you are confusing Form 8843 (Statement for Exempt Individuals and Individuals with a Medical Condition) with Form 8833 (Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)). |
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Jan 10, 2008, 01:39 PM
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#9
| | Junior Member
Join Date: Jan 2008
Posts: 40
| Hello
In general if you stay less than 183 days, and going back to country, you can avoid paying US taxes, based on the Closer Connection test.
This is straightforward and simple.
Hope this helps! |
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Jan 10, 2008, 02:14 PM
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#10
| | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 9,873
| Closer Connection may apply; depends on what the tax treaty says. |
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