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-   -   Tax rates for OPT students in CA (https://www.askmehelpdesk.com/showthread.php?t=814064)

  • Jul 13, 2015, 07:27 PM
    haneesh17
    Tax rates for OPT students in CA
    Hello,

    I am an Indian student and came to the US in the last week of December, 2013. I have completed my Masters degree and am on OPT currently. I got a job in CA and my pay is $65k. I would like to know my tax deductions and the slab.

    Any help will be appreciated. Thank you.
  • Jul 14, 2015, 06:19 AM
    AK lawyer
    What's a "slab"? If you mean this, please be more specific with your question.

    I see what OPT is from this article: https://en.wikipedia.org/wiki/Option...tical_Training

    This may be helpful:

    "The tax regime that applies to students under OPT depends on whether they qualify as resident aliens or nonresident aliens for tax purposes. The first five calendar years in student status (F-1) are exempt from the Substantial Presence Test used to determine eligibility for being a resident alien for tax purposes, after which approximately six months in the United States makes one a resident for tax purposes.
    Students who are nonresident aliens for tax purposes while on OPT are exempt from paying Social Security and Medicare taxes. On the other hand, students who are resident aliens for tax purposes while on OPT are required to pay Social Security and Medicare taxes.
    Note that the requirement for paying Social Security and Medicare taxes for OPT employers differs subtly from the requirement for paying Social Security and Medicare taxes while engaged in on-campus employment in student status. For the latter, resident aliens in student status are also exempt from paying Social Security and Medicare taxes (per IRC Section 3121(b)(10)), whereas for the former, only nonresident aliens (based on the substantial presence test) are exempt from the taxes."

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