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    Dev007's Avatar
    Dev007 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Nov 11, 2006, 06:59 AM
    How much do I get per month after Tax deductions ?
    Hi,

    I am on an L1 VISA, I would like to know what is the income tax deducted for an annual income of say 50K in Georgia ? And how is the tax returns done ?

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Nov 11, 2006, 08:16 AM
    As an L-1 visa holder, you are fully liable for all taxes, as indicated below:

    - Social Security tax (6.2%) which is a flat tax levied against the first $90K of income ($97K for 2007).

    - Medicare tax (1.45%) which is a flat tax levied against all wages.

    - GA Income tax ($940 tax against the first $20,000, then 6% on every dollar OVER $20K).

    - Federal income tax is based on a progressive assessment that starts at 0%, then 10%, then 15%, then 25%, then 28%, topping out at 38%.

    On $50,000, your GA income tax liability will be $2,513 and your federal income tax liability will be $7,281.

    You can do the math for Social Security and Medicare taxes. This assume you are single with no dependents.
    abe4u's Avatar
    abe4u Posts: 2, Reputation: 1
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    #3

    Nov 11, 2006, 10:09 PM
    Quote Originally Posted by AtlantaTaxExpert

    - GA Income tax ($940 tax against the first $20,000, then 6% on every dollar OVER $20K).

    On $50,000, your GA income tax liability will be $2,513 and your federal income tax liability will be $7,281.

    Is there some deduction/exemption being included here?

    On $50K as per your formula above, $940 + 30K*0.06 = $2740.

    Assuming a single person, how would you arrive to the number($2,513) above?

    What I'd like to figure out is that if my total gross is going to be $25K and I arrived in US in September on a L1, then how much is the tax liability?

    I've been through a dozen sites now since morning and my brain's totally befuddled with contradictory information!

    Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Nov 12, 2006, 03:48 PM
    Yes, there is a personal exemption, plus a standard deduction, on the GA tax.

    You did not share with me that you arrived in September. That changes things.

    You need to file a dual-status return for 2006 to avoid being taxed on ALL of your income.

    Download IRS Pub 519 from www.irs.gov and read chapter 5.
    Dev007's Avatar
    Dev007 Posts: 2, Reputation: 1
    New Member
    		  
    #5

    Dec 12, 2006, 02:12 AM
    Hi,
    Thanks a lot for the detailed info.
    Can you please let me know if we would be eligible to get some amount as Tax refund during Tax filing ?

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Dec 12, 2006, 11:07 AM
    If you are like most people, you are over-withholding, which measn you probably WILL get a tax refund.

    BTW, this is NOT a good thing, as ANY refund is an interest-free loan to the U.S and Georgia governments.

    As for filing your return, contact me at [email protected], and I will cover in detail how I can help you file your return.
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