Hi,
I was under H-1B for the whole of 2005, and I have completed 1040-EZ. I took the standard $8200 deduction ($5000 plus $3200), and it turns out that I owe about $900. My company handled all the papers and forms for the H-1B in late 2004, and I am just concerned, since I am assuming that it is not normal to be owing so much in unpaid taxes. From my W-2, I have calculated that 13.5% of my wages (box 1) was taken as federal income tax (box 2). Is this less than normal? My wages are about $55,000.
From my W-2, I can see that my W-2 wages were calculated by:
(gross wage) - (health insurance costs) - (life insurance costs)
Should the gross wage include my annual bonus? If I got a raise in April 2005, should the gross wage be pro-rated to reflect the two different wages that I received for different parts of the year?
Thanks in advance for your help. I have been using this forum to complete my taxes for the last few years when I was under F-1. This is my first time completing my taxes under H-1B, but my case is very simple, as I am from South Korea and do not have any property or investments in the U.S. Thanks again.