View Full Version : How much do I get per month after Tax deductions ?
Dev007
Nov 11, 2006, 06:59 AM
Hi,
I am on an L1 VISA, I would like to know what is the income tax deducted for an annual income of say 50K in Georgia ? And how is the tax returns done ?
Thanks
AtlantaTaxExpert
Nov 11, 2006, 08:16 AM
As an L-1 visa holder, you are fully liable for all taxes, as indicated below:
- Social Security tax (6.2%) which is a flat tax levied against the first $90K of income ($97K for 2007).
- Medicare tax (1.45%) which is a flat tax levied against all wages.
- GA Income tax ($940 tax against the first $20,000, then 6% on every dollar OVER $20K).
- Federal income tax is based on a progressive assessment that starts at 0%, then 10%, then 15%, then 25%, then 28%, topping out at 38%.
On $50,000, your GA income tax liability will be $2,513 and your federal income tax liability will be $7,281.
You can do the math for Social Security and Medicare taxes. This assume you are single with no dependents.
abe4u
Nov 11, 2006, 10:09 PM
- GA Income tax ($940 tax against the first $20,000, then 6% on every dollar OVER $20K).
On $50,000, your GA income tax liability will be $2,513 and your federal income tax liability will be $7,281.
Is there some deduction/exemption being included here?
On $50K as per your formula above, $940 + 30K*0.06 = $2740.
Assuming a single person, how would you arrive to the number($2,513) above?
What I'd like to figure out is that if my total gross is going to be $25K and I arrived in US in September on a L1, then how much is the tax liability?
I've been through a dozen sites now since morning and my brain's totally befuddled with contradictory information!
Thanks!
AtlantaTaxExpert
Nov 12, 2006, 03:48 PM
Yes, there is a personal exemption, plus a standard deduction, on the GA tax.
You did not share with me that you arrived in September. That changes things.
You need to file a dual-status return for 2006 to avoid being taxed on ALL of your income.
Download IRS Pub 519 from www.irs.gov and read chapter 5.
Dev007
Dec 12, 2006, 02:12 AM
Hi,
Thanks a lot for the detailed info.
Can you please let me know if we would be eligible to get some amount as Tax refund during Tax filing ?
Thanks
AtlantaTaxExpert
Dec 12, 2006, 11:07 AM
If you are like most people, you are over-withholding, which measn you probably WILL get a tax refund.
BTW, this is NOT a good thing, as ANY refund is an interest-free loan to the U.S and Georgia governments.
As for filing your return, contact me at
[email protected], and I will cover in detail how I can help you file your return.