Hello,

I'm in the USA on L1-A visa for just under a month (a visa is for a year, but I hope to extend it). I'm married, but my husband is not in US (he will be applying for visa and hopefully arriving in about 2 months).

1. I'm not sure how many allowances to claim, and if to claim single or married on W-4 form. We do not have children.

2. Are federal and state allowances the same? I got taxed a huge amount (as it seems to me) on my first paycheck and it says on the top of the paycheck that it is filed as Single/0 allowances, is that right if on W-4 I got 3 allowances, but those are federal?

3. My boss is paying 70% of my medical, but I still pay 30%, can it be on my paycheck in before tax amount?

4. The business that I work for is registered in New Jersey. I'm looking for rental for myself now and I was wondering if it would be cheaper for me tax wise to stay in New Jersey?

Thank you!!
Nadia Richards

About your 2009 tax return, you have two choices:
Choice 1: Since you will not complete SPT in 2009, you can file non-resident tax return. You can claim moving expenses.

Choice 2: You can file resident tax return as Married Filing Jointly. You will have to wait for about 5 months to file your tax return till you meet the Substantial Presence Test (of 183 days) in 2010. Read Your U.S. Tax Return: Substantial Presence Test (http://taxipay.blogspot.com/2008/04/substantial-presence-test.html)

You will get standard deduction of $11,400 and exemptions ($3,650 each) for both of you. You can also claim moving expenses.
You must both declare your worldwide income for 2009. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit (Form 1116) or you can use Foreign Earned Income Exclusion (Form 2555). Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

If you file resident return, you may also have to file Form TD F 90-22.1

Nadia:

If your choice is New Jersey, Conecticut or New York as places to stay, it is likely that New Jersey is your best choice tax-wise.

Depending on how long you stay and if you are from a country that has a treaty with the U.S. you may not owe any U.S. federal income tax.