I was granted and L1 Visa late 2006. I have not paid any taxes as yet, and there seems to be some confusion as to whether I should be paying them or not. Some people say that I should, others (who have had the visa for many years) state that you do not need to. While at the same time I have come across only 1 individual that has done so.

My questions are:
1 - Do holders of L1 Visa have to pay taxes? If so, is it just Federal Income tax, or also Medicare and other associated taxes.
2 - What is the general rate (of taxation) for a single (divorced) individual? I know this question is kind of vague and it depends on salary, so for comparison sake assume 70K per year.
3 - I have monthly commitments to my siblings in another country. Can I claim these monthly payments?

Thanks a lot for your assistance.

Regards,

D

1) L-1 visa holders pay all taxes (income, Social Security, Medicare) just like H-1B visa holders, if they are in the U.S. for more than 183 days or if their income is from a fixed base within the U.S.

2) Your marginal tax rate (tax rate on the last dollar you earn in the year) is 25%.

3) No; your siblings cannot be claimed as dependents unless they live with you as U.S. residents.