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taxes_li
Jul 2, 2012, 08:59 AM
I am an intern on F1 visa working in Suffolk county in Long Island city. What will be my fedral and state tax rate?

AtlantaTaxExpert
Jul 2, 2012, 11:17 AM
I need to know what you will earn for 2012.

You ARE exempt from FICA (Social Security and Medicare) taxes. Make sure your emploer is aware of this.

taxes_li
Jul 2, 2012, 04:43 PM
Thanks for that. With a monthly salary of $3500 what will be federal and state tax?

AtlantaTaxExpert
Jul 3, 2012, 07:50 AM
Need to know which state, AND what countrty you are from.

taxes_li
Jul 3, 2012, 12:46 PM
H.P. India

AtlantaTaxExpert
Jul 4, 2012, 12:48 PM
State in the U.S.

taxes_li
Jul 4, 2012, 09:54 PM
Ny

AtlantaTaxExpert
Jul 12, 2012, 12:55 PM
For NY state, your tax rate (after exemptions) will 6.45%.

Since you are from India, the first $9,700 of your salary is tax-free due to your personal exemption ($3,800) and the standard deduction ($5,900) (authorized under the U.S. - India Tax Treaty). The next $$8,500 is taxed at 10%. The next $26,000 is taxed at 15%, and whatever is left is taxed at 25%.

Note that you are EXEMPT from FICA (Social Security and Medicare) taxes, so make sure your employer is NOT withholding these taxes from your pay. If they are, download IRS Pub 519, pritn off pages 52-59, and take them to your payroll department to show them you are exempt and ask for them to STOP withholding the FICA taxes and refund the taxes already withheld.

taxes_li
Jul 12, 2012, 03:52 PM
Thank you for providing the details. I believe 6.45% does not include federal tax. What will be tax % for federal?

AtlantaTaxExpert
Jul 12, 2012, 06:36 PM
I listed the three tax brackets that affect you (10%, 15% and 25%) in the second paragraph of my answer.

taxes_li
Jul 12, 2012, 06:54 PM
Oh I am sorry if my question was not clear. I understood that different tax brackets will help me in calculating the total tax. However, I just wanted to know what is the federal tax rate separately?

AtlantaTaxExpert
Jul 12, 2012, 07:53 PM
I see that you do NOT understand.

There is NO single federal tax rate. The first $9,700 is tax free, then the next $8,600 is taxed at 10%, wheareas the next $26,000 is taxed at 15%, and the rest of your salary (that amount above $44,300) is taxed at 25%.

Such is the progressive nature of federal taxation.

taxes_li
Jul 12, 2012, 07:58 PM
Oh that means I really didn't understand :-) One last question, and really sorry for big so dumb but I want to clarify this confusion. This progressive tax bracket is the final tax rate or do I need to add NY state tax separately to it?

AtlantaTaxExpert
Jul 13, 2012, 07:02 AM
The NY state tax is separate, so you need to add it to the federal rates.