Hi,

I will be moving to a new company in College Station (Texas) on H1B. What will be tax on my income? My package is USD 50,000 per annum. Can I save the tax by investing my income somewhere ?

Thanks & Regards
Vicky

Vicky:

WHEN did you arrive in Texas?

Hi,

College Station (Texas)

Sorry to hear it, you have my sympathy. ;)

TaxSearcher:

Sarcasm does NOT become you!

Vicky:

WHEN did you arrive in Texas?


I have not yet arrived to TEXAS. I will be joining the company on 1st March...

Sorry to hear it, you have my sympathy. ;)


But why?? Is this not a Koool place dear! ;)

TaxSearcher:

Sarcasm does NOT become you!

If you can help me out to find out the answer that will be great!

Vicky:

Assuming you file as a single person and can claim only your personal exemption and the standard deduction, your federal tax will be $6,939 on $50,000 in annual income. Texas has no state income tax.

You will also be liable for Social Security (at 6.2%) and Medicare (1.45%), which tax at the flat rates noted above.

You can reduce your income tax by investing $4,000 in a traditional IRA, but only if you cannot participate in your employer's retirement plan, which you probably cannot until you have been with the company for a few years. If you can stand paying the income tax noted above, you should actually go woth a Roth IRA. It generates NO immediate tax benefit, but it grows tax-free. That allows it to be a great retirement benefit if you leave it alone.

I guess if you are into cow tipping and college boys playing dress up as soldiers then you'll love it!

I agree with ATE. But if you are just moving to the US for the first time, your situation will differ a little.

Vicky:

Assuming you file as a single person and can claim only your personal exemption and the standard deduction, your federal tax will be $6,939 on $50,000 in annual income. Texas has no state income tax.

You will also be liable for Social Security (at 6.2%) and Medicare (1.45%), which tax at the flat rates noted above.

You can reduce your income tax by investing $4,000 in a traditional IRA, but only if you cannot participate in your employer's retirement plan, which you probably cannot until you have been with the company for a few years. If you can stand paying the income tax noted above, you should actually go woth a Roth IRA. It generates NO immediate tax benefit, but it grows tax-free. That allows it to be a great retirement benefit if you leave it alone.










Hi,

Thanks a lot for the effort. One more thing. The final figure of tax in % to my total income will be 13.878 (( 6939/50000) * 100 ) + 6.2 + 1.45 = 21.528 % of $ 50,000.
Is this correct ? These figures are applicable on H1B or not ? As I am having H1B.

Thanks & Regards
Vivek Ranjan

Vivek:

Yes, that sounds about right!

Vicky:

Assuming you file as a single person and can claim only your personal exemption and the standard deduction, your federal tax will be $6,939 on $50,000 in annual income. Texas has no state income tax.

You will also be liable for Social Security (at 6.2%) and Medicare (1.45%), which tax at the flat rates noted above.

You can reduce your income tax by investing $4,000 in a traditional IRA, but only if you cannot participate in your employer's retirement plan, which you probably cannot until you have been with the company for a few years. If you can stand paying the income tax noted above, you should actually go woth a Roth IRA. It generates NO immediate tax benefit, but it grows tax-free. That allows it to be a great retirement benefit if you leave it alone.










Hi,

Thanks a lot for the effort. One more thing. The final figure of tax in % to my total income will be 13.878 (( 6939/50000) * 100 ) + 6.2 + 1.45 = 21.528 % of $ 50,000.
Is this correct ? These figures are applicable on H1B or not ? As I am having H1B.

Thanks & Regards
Vivek Ranjan

Vivek:

Yes, that's about right!

Not only do you have to pay all that tax but you also have to live with all those Aggies :eek: . Lucky you, huh ;)

Hi,

Thanks a lot for the effort. One more thing. The final figure of tax in % to my total income will be 13.878 (( 6939/50000) * 100 ) + 6.2 + 1.45 = 21.528 % of $ 50,000.
Is this correct ? These figures are applicable on H1B or not ? As i am having H1B.

Thanks & Regards
Vivek Ranjan










Hi,

Thanks a lot for the effort. One more thing. The final figure of tax in % to my total income will be 13.878 (( 6939/50000) * 100 ) + 6.2 + 1.45 = 21.528 % of $ 50,000.
Is this correct ? These figures are applicable on H1B or not ? As I am having H1B.

Thanks & Regards
Vivek Ranjan

Vivek:

Yes, that sounds about right!


Hi,

Good Day!

Please ignore my earlier update as I had not seen your answer. It has been great conversing with expert like you.I will get back to you if I have any questions.:)

Warm wishes...

Thanks & Regards
Vivek Ranjan

Okie dokie!

If you need my professional tax help, contact me at [email protected].

Vicky:
Need your advice on my situation:
I am a single and a fresh immigrant came with green card, live in US from
Dec.2005 and start to work from March, 2006.
I didn't file tax for 2005 since I didn't have income.
I filed tax return for 2006 by April,2007 prepared by myself. But I only
Claimed basic tax exemption of income(first $7000). A friend told me there
Are more I should be able to get deduction.For instance, state sales tax(I
Bought a used car), relocation cost(since I came from other country)...
Also, he said I may qualify for non-resident category.
Now I am thinking to file a tax amendment.
If you know what's the typical deductible items for a person like me:
Single, gross income($60000), no-house,no-dependent, live in TX, US since
Dec. 2005
What is the list of the deduction I can claim for credit?
I appreciate any advice. Please shed some light on the american myth tax
Regulations..
Many many thanks...
--


Hi,

I will be moving to a new company in College Station (Texas) on H1B. What will be tax on my income? My package is USD 50,000 per annum. Can i save the tax by investing my income somewhere ?

Thanks & Regards
Vicky

Lily:

You CAN claim relocations costs using Form 3903.

The sales tax is an ITEMIZED deduction, which most people cannot claim unless they own a home and are paying a home mortgage.

You will have to amend your return using Form 1040X.

If you want help, contact me at the email address below.