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walkwithme007
May 26, 2012, 05:57 PM
HI,

I am planning to relocate to Boston as I have been offered a position, the annual salary is $45000. I am a Masters graduate, Indian citizen and on F-1 Visa and would work for this position, for a year during my OPT.

Could you please tell me the total tax deduction (in percentage) - state and federal, for the above salary (or the net income)?

AtlantaTaxExpert
May 29, 2012, 10:32 AM
Massachusetts tax rate is about 5.3%.

You would pay 4.2% for Social Security and 1.45% for Medicare, but, as a F-1 student on OPT, you are EXEMPT from these taxes. MAKE SURE your employer is aware of that fact.

Your marginal federal income tax rate (tax rate on the LAST dollar earned) is 15%, but your actual tax rate will be less than that due to your $5,850 standard deduction and your $3,750 personal exemption. This assumes you are from India.