Tax liability under OPT v L/H1B visas
I completed a degree in the summer of 2007 in the United States and was issued an OPT employment card commencing 1 July 2007 expiring 30 June 2008. I started work in September 2007 in New York and live in Manhattan.
It is possible that I am eligible to work under the 'L' visa in the alternative to the OPT status. I understand that for income tax purposes the 'L' is equivalent to an H1B (ie. Resident alien subject to federal tax on a graduated basis). My queries are:
1. Would I pay less income tax by remaining on the OPT (under which I understand I am subject to a 30% federal tax rate plus NY state and city tax) as opposed to an L (under which I understand that I would be subject to graduated federal income tax, medicaid, social security, NY State and city tax)?
2. Is there a free calculator into which I can enter my gross income for the remainder of 2007 and for all of 2008 and be told my net income under OPT and under L/H1B?
3. Is is possible to claim back any living (e.g. rent) or business (e.g. work clothing) expenses whilst working on OPT that would not be available if working under an L/H1B visa?