I am an Indian Masters Graduate, currently working on OPT. I would like to Know what is the percentage of tax( in California) while working on OPT. and Say if I am given 10,000 USD taxable amount from the company, How much will I receive in hand after applying California taxes.

Thanks,
Nitin.

Nitin:

If your total income is $10,000 for 2007, you will owe $38 in California taxes.

You will file 1040NR and Form 8833 to disclose treaty position. As per India U.S. tax treaty you will get standard deduction of $5,350 and exemption of $3,400. So you won't have any federal tax.

You will also file CA return as non resident.
Your income is not subject to FICA taxes (social security and medicare taxes).

Agree to the non-resident status for California. His status as a student dictates that.

Form 8833 is NOT really required due to the low income level. He CAN file it if he wants, though.

Quote:

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Originally Posted by AtlantaTaxExpert

Nitin:

If your total income is $10,000 for 2007, you will owe $38 in California taxes.

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10,000 USD is not my Income, it just the relocation charges. Well my income is 75,000 usd per annum. So my question was how much relocation money will I get in hand after tax.

Quote:

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Originally Posted by MukatA

You will file 1040NR and Form 8833 to disclose treaty position. As per India U.S. tax treaty you will get standard deduction of $5,350 and exemption of $3,400. So you won't have any federal tax.

You will also file CA return as non resident.
Your income is not subject to FICA taxes (social security and medicare taxes).

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10,000 USD is not my Income per annum, its just the relocation Money. Well my income is 75,000 usd per annum. So my question is how much relocation money will I get in hand after tax.

If you break your question for year 2007 and 2008, then you will get exact answers. Also up to now we have assumed that you are Single.
1. Total income in 2007 and your visa status.
2. Total income in 2008 and your visa status. If you will get relocation money in 2008, what will be your actual relocation expenses?

We also need to know if the relocation money is a BONUS (which is taxable) or was paid in response to a moving expense report (which would make it non-taxable).

More than likely, the relocation money IS taxable, which means you want to file Form 3903 to claim the moving expenses.

Quote:

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Originally Posted by AtlantaTaxExpert

We also need to know if the relocation money is a BONUS (which is taxable) or was paid in response to a moving expense report (which would make it non-taxable).

More than likely, the relocation money IS taxable, which means you want to file Form 3903 to claim the moving expenses.

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Well about my status I am joining my Company on 14th Jan. This is my first Job after my graduation and I will be on OPT till December 2008.

This relocation Money of 10,000 $ is a bonus which is taxable. So how much Money will I get in Hand after Tax (In california)?

You probably do not owe ANY California tax, so you should get all of the withheld California taxes back once the moving expenses are deducted.

From where did you move to California?

This is an interesting discussion. I have a few questions further to the above. Do I ask them here or start a new topic?

Nightan:

You can post them here or start a new topic; your choice.

Agreed!