[andre301979]

Hi, I am an F-1 OPT student, resident of India, and I've been offered a job in MA. I needed help in filling form W-4 2012. Can you please advise me in entering the details, for some specific questions (below)?

Information: Single, can't be claimed as a dependent, no dependants, one job in MA, F-1 student since August 2010 with no previous earnings till date in US.

Questions/Clarification -

1) I should be entering 2 in H. in the Personal Allowances Worksheet?
2) What do I enter lines 6 and 7?
4) I think the standard deduction applies to me as I'm an Indian resident, but for the purpose of Deductions and Adjustments Worksheet - what should I enter #1, #2, #4, #5 and #6? I don't think after reading through Pub 505, that I have anything that's relevant to #4, #5 and #6; but you think there is anything that I should be concerned about, given my situation for these lines?

5) What would be my net income? (Gross - $40,000)

[AtlantaTaxExpert]

As a non-resident alien, you have only TWO choices:

- SINGLE with ONE allowance.
- SINGLE with ZERO allowances.

This is spelled out in IRS Pub 515, and is done to ensure enough money is withheld from your salary to cover your tax liabilities.

Suggest you choose SINGLE with ONE allowance.

Also, MAKE SURE your employer does NOT withhold FICA (Social Security and Medicare) taxes, because you are EXEMPT from these taxes under your F-1 visa (see pages 53-56 of IRS Pub 519).

[andre301979]

Thanks, so this means I should be entering two allowances in line H and what would be my net income - does the federal tax and/or state tax for MA apply in my case?

[AtlantaTaxExpert]

No, read my answer again: the MOST allowances you can claim is ONE on the federal Form w-4.

Now, for Massachusetts, there are NO restrictions that I know of in claiming allowances for withholding purposes, so you CAN claim TWO allowances on the Massachusetts form that is the equivalent to the federal Form W-4.

[andre301979]

Okay, and would my net income be after deduction of 15% federal tax and 5.3% MA state tax?

[AtlantaTaxExpert]

I cannot answer that with the information provided.

You can download Circular E from www.irs.gov and look it up.