Hello,

I am moving from Australia to New York in a few weeks and will be working in NYC on the E-3 Visa.

I have used PaycheckCity.com | Paycheck Calculator to calculate estimated tax on $75k below:

Bi-weekly Gross Pay - $2,884.62

Federal Withholding - $560.54

Social Security - $178.85

Medicare - $41.83

New York - $163.95

NY SDI - $1.20

Net Pay - $1,938.25


1) Are the above calculations correct based on a salary of $75K per year?

2) If I work on the E-3 Visa, will I be classified as a resident or non-resident of the U.S. for tax purposes?

3) What are the implications of being classified as a resident or non-resident of the U.S for tax purposes? (i.e. Can I be reimbursed for any taxes above, if I am not a resident?)

You ARE liable for Social Security and Medicare taxes due to your E-3 visa, and you will NOT get these taxes back, even though you will NOT qualify for benefits. However, due to a totalization agreement between Australia and the U.S. you will get credit for thos etaxes on the Australian equivalent program.

For 2008, you will NOT have met the 183-day Substantial Presence Test, so you will file as a non-resident alien. You will NOT be allowed to claim he standard deduction, but may be able to claim a treaty exemption and claim itemized deductions (mostly the NY state and city taxes withheld).

If you need professional hel to prepare your return, contact me at the email below.