I will be going to US for below 6 months on H1. Do I still needs to pay Tax on my earnings. If yes, what will be tax brackets?
![]() |
I will be going to US for below 6 months on H1. Do I still needs to pay Tax on my earnings. If yes, what will be tax brackets?
If you earn more than $3700 you will need to pay taxes and file a tax return. If you stay less than 183 days and haven't been in the US the 2 years before, than you will be a non-resident alien and need to file a 1040NR or 1040NR-EZ reporting only US source income. Your tax bracket would depend on your income. The same tax tables apply as for residents, you can find them in the instructions for form 1040. You cannot take the standard deduction nor claim any dependents (unless you are from Canada, Mexico or South Korea).
It is true that you cannot claim the standard deduction.
However, if you are here for LESS than one year, the job meets the IRS definition of being a temporary job, so you CAN claim daily living expenses (rent, utilites, local transportation, food and incidental costs). Since these are itemized deductions, it is likely that your itemized deduction will EXCEED the standard deduction.
You need to keep receipts for local transportation (rental car), rent and utilities; the IRS will want to see them if they audit you. The food and incidental costs are covered by the rates published in IRS Pub 1542.
Email me if you need professional help filing at [email protected]. This IS what I do!
Even if your stay of H1-B is less than 6 months, you will pay Social Security tax, Medicare tax, federal income tax and state income tax.
All times are GMT -7. The time now is 02:25 AM. |