[PKM]

Hello,

I am looking at commencing work in an architectural design company in Detroit, MI from Dec 08. I would hold an E3 visa. What would be the taxes I would be paying in Detroit as an E3 visa holder?
Also what implication does the financial crises and rescue plan have on E3 visa holders?

Looking forward to your response.

[MukatA]

The E-3 are non-immigrant visas that allow Austrialians to work in the U.S. without restrictions.

Your income is subject to FICA taxes and income taxes. Your days in the U.S. count towards Substantial Presence Test. Read: Your U.S. Tax Return: The U.S. Visas

[AtlantaTaxExpert]

PKM:

If you start work in Dec 08, you may not HAVE to file a U.S. return for 2008 for one of two reasons.

First, since most employers pay AFTER the work is done, usually with at least a one-week delay from the end of the pay period, you may not get paid until sometime in January 2009. Under the cash-basis tax system, you pay taxes in the year you paid, NOT the year you earn the income (which would be the case under the accrual-basis tax system).

Second, let's assume that you DO get one or two paychecks before the end of the year. If, in total, your earned income is less than $3,500 for December, you have NO LEGAL REQUIREMENT to file a tax return, because your total U.S.-sourced income would be offset by your personal exemption of $3,500.

Now, if federal income taxes were withheld from that one or two paychecks, you may WANT to file a tax return to claim a refund of those withheld federal income taxes. If so, you would file Form 1040NR-EZ, because you will have NOT met the Substantial Presence Test and would therefore file as a non-resident alien for 2008.

One last note: Filing requirements for STATE income taxes are somewhat different than the federal system, so you may have to file a state return even if a federal return is not required.