Hello Friends,

I'm planning to come to Austin TX by Mid May 2008 on a L1 Visa category with my wife and 6 1/2 years old son. My possible Package is 77K per annum.

In order to plan my expenses would like to know the following from my helpful friends in this community.

1. What are the taxes that I will have to pay from my Income? Please provide Value or percentage wise.

2. What tax benefits could I obtain, when my Wife is not working and having a 6 year old kid?

3. What period and how should I file taxes?

4. Where can I obtain this tax filing service? And how much will it costs?

5. I will be living on Rent in an apartment, can I get the tax benefit due to rent?

Thanks for all your kind guidance.

best regards,
np

1) You are liable for Social Security (6.2%) and Medicare (1.45%) taxes, plus the federal income tax which starts at 10% and tops out at 15% for your projected income.

2) You will be able to file jointly with your wife and you BOTH choose to be treated as resident aliens. This will allow you to claim a joint standard deduction of about $11,000 PLUS thre personal exemptions of $3,500 each PLUS the $1,000 Child Tax Credit.

3) You will file for Calendar Year 2008, and you MUST claim income earned while in India. However, you may be able to avoid taxes by either claiming the Foreign Tax Credit (Form 1116) or the Foreign Tax Exclusion.

4) Visit the website link below.

5) None, as your job is NOT considered to be temporary in nature by the IRS.