View Full Version : Federal income tax less than 180 days
santosh.kum
Dec 25, 2009, 11:25 AM
I have been in US (State- Oregon) for less than 180 Days on H1-B Visa (First week of July to mid Dec).
I paid fedral income tax, social security tax, medicare tax and state income tax while I was there.
I want to know will I be getting all my full tax refund whatever I have paid (all 4 kinds of taxes as stated above). What all taxes I will get as refund.
AtlantaTaxExpert
Dec 27, 2009, 03:05 PM
Your salary was paid by a U.S. employer, so the 183-day rule does not apply.
File your state and federal returns, as you probably have refunds due to you, but they will NOT be a full refund, even though you CAN claim daily living expenses as an itemized deduction.
santosh.kum
Dec 30, 2009, 11:25 PM
Thanks for the reply...
Actually I was working for a US company but was getting paid by Indian company, I was on deputation to assignment for this US company. I am/was not part of this US company.
What could be the case in this scenario, will I be gettng the full refund (considering my assignment was for a period of less than 180 days).
Thanks.
AtlantaTaxExpert
Dec 31, 2009, 10:04 AM
The fact that federal and state income taxes, plus FICA (Social Security and Medicare) taxes, were withheld means that you were being paid through the U.S. company. This invalidates the 183-day rule and makes your income subject to U.S. taxes. The H-1B visa dictates that you HAD to be paid through the U.S. company. Black-letter law!
You will NOT get a full refund, but you CAN claim daily living expenses because your stay was less than one year. That should get the bulk of your withheld federal and state income taxes back.
The FICA (Social Security and Medicare) taxes are NOT refundable.
santosh.kum
Jan 14, 2010, 06:25 AM
The fact that federal and state income taxes, plus FICA (Social Security and Medicare) taxes, were withheld means that you were being paid through the U.S. company. This invalidates the 183-day rule and makes your income subject to U.S. taxes. The H-1B visa dictates that you HAD to be paid through the U.S. company. Black-letter law!
You will NOT get a full refund, but you CAN claim daily living expenses because your stay was less than one year. That should get the bulk of your withheld federal and state income taxes back.
The FICA (Social Security and Medicare) taxes are NOT refundable.
As daily leaving expenses, what are the things I can claim as tax refund (less than 180 days stay). I don't have any bills with me right now. If daily allowances can be claimed as tax refund, what is the limit (again I don't have any bills for living allowances).Please advise.
One more thing, I was on pay roll of an indain company and was getting paid by Indian company only. I was there on temporary assignment working for a US client. I did not receive any money as salary from US company.
Please let me know if I can claim full tax refund.
Thanks.
AtlantaTaxExpert
Jan 16, 2010, 04:05 PM
The costs that can be deducted include your lodging costs (hotel or apartment rental) local transportation costs, and meals and incidental expenses.
The meals and incidental expenses can be claimed using per diem rates as specified from IRS Pub 1542; no receipts are required.
Receipts WILL be needed for the lodging expenses.