Hello Experts,

Im Indian,came to US in May 2008 on F1 visa.
Im working in CA,on CPT. From Dec,2008.

In my W2 form I filled as Independent ,single and no dependents.


As per my paycheck I see that on 2500$ bi-weekly salary Federal Tax (458.65$)+CA State Tax(130.67$) + DBL(27.50$)
Total Deduction of 616.82$ is deducted from my pay.
I get 1883.16$


Im on CPT and Im paying my university tution fee of 7000$ per sem.

1)Based on my CPT status and university fee payments will I get any REFUND on the TAX that is been deducted from my payroll? At the time of filling the taxes.

2) What modifications should I make in my W2 form so that instead of 616.82$ TAX a lesser amount (may be 300$) tax is deducted from Payroll.

3) Can I choose to pay the tax at the end of the year rather than deducting in every payroll.

PLease suggest any options available so that less TAX amount is deducted from my payroll because of CPT+University Tution Fee+Books expenses...



Thanks

On F1/OPT you are exempt from residency for 5-years. You must file non-resident tax return and Form 8843.

Your income is not subject to FICA taxes. If employer is withholding SS tax and Medicare tax, then tell them about your status so that they do no withhold these taxes. Send them email for refund of the taxes.
Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html) and Your U.S. Tax Return: Social Security and Medicare (FICA) Taxes for Non-resident Exempt Individual (http://taxipay.blogspot.com/2008/03/non-resident-exempt-individual-social.html)

My question is what is the percentage of Federal tax will be deducted from the income based on CPT status?

A total of almost 1300$ is deducted from my monthly income of 5000$ as TAXES is that too much?

What changes should I make to reduce the deductions?
As being on CPT and paying my tution fees+books .


Suggest the modifications I should make in W2 form so that lesser deductions are done by my employeer...


Suggest...


Thanks

JunctionJam:

As a SINGLE foreign national, by law, you can claim only SINGLE with ZERO exemption or SINGLE with ONE exemption. No other option is available to you.

In other words, you are being forced to over-withhold!

The reason is simple: The IRS wants to make sure that the tax liability that goes with your salary is covered by your withholdings, so you cannot return to your home country and NOT file a tax return to pay the taxes you may owe.

Since you will have a rather large refund due, you will have an incentive to file, even if it means filing from your home country.

BTW, as a non-resident alien, you CANNOT claim any deduction or education credit for the tuition you have paid.

Thanks a lot for the information!

Glad to help!