I am due to come to the US on an L1 visa for a stint of 11 months to the state of VA. I am unmarried with no dependents. Can you kindly provide the percentages that would be deducted under the various heads namely Social Security Tax,Medicare Tax,GA Income Tax,Federal Income Tax. My annual gross salary would approximately be 54000 USD. Thanks in advance for the help.

Your FICA percentages are 1.45% for Medicare and 6.2% for Social Security (though it is 4.2% for 2011 under a deal with Congress).

The income tax percentages for every state can be found at the link below:

http://www.taxfoundation.org/taxdata/show/228.html

You are in the 25% marginal tax bracket (tax paid on the LAST dollar you earn in 2011. The two lower tax brackets is 10% and 15%.

Under IRS regulations, you can claim SINGLE status on your W-4 with either ZERO or ONE allowance. That will result in enough taxes being withheld to cover your tax liability for 2011.

Thanks a ton for the help Atlantataxexpert.

I am an absolute newbie when it comes to US taxation policies. So am I right in saying that the overall tax percentage deducted from me would be a cumulative of the following:

FICA + Social Security + Local Taxes = around 10-12% ? So is this what I should expect as deductions from my total salary and accordingly the remainder to go forth as the in-hand salary figure?

Based on your $54K annual salary, you should expect about $10K in additional federal INCOME taxes to be withheld as well.

Hi,

Once again, thanks a ton for the speedy reply.

Oh my that's a lot of money deducted in taxes.

Just to confirm my understanding, this means roughly when I get $54k,
FICA + Social Security + Local Taxes => around 10-12% i.e = 12%of $54= $6480
Federal Taxes=$10k

My in-hand would work out to be roughly = $54000- ($6480+$10000)= $37500 divided over 12 months

Is it as in the above assessment how things work out? Kindly let me know.

Are there any exemptions under which I can reduce the taxation on me?

Thanks.

Yes, those figures seem about right.

Understand that IRS rules for foreign nationals working in the U.S. DICTATE that you claim SINGLE status with ZERO or ONE allowance (no more) on yor W-2. That is done to ENSURE that you over-pay on tax withholding to keep you from returning to your home country without paying what is owed in taxes.

It results in getting a larger-than-normal tax refund when you file, but it DOES give you an incentive to file, even if you have to file from your home country.

Piece of advice: When you return to your home country, keep your checking account open at a U.S. bank so that the IRS and state have somewhere to send your refund via direct deposit. The alternative is to get the check in the mail, which can be a risky proposition in some countries.

Excellent advice, you rock AtlantaTaxExpert!

Glad to help!