[Ricky Barnett]

Hello Friends,

I'm planninng to come to California by Mid February 2008 on a L1 Visa category with my wife and 3 1/2 years old daughter.

In order to plan my expences would like to know the following from my helpful friends in this community.

1. What are the taxes that I will have to pay from my Income? Please provide Value or percentage wise.

2. What tax benefits could I obtain, when my Wife is not working and having a 3 year old kid?

3. What period and how should I file taxes?

4. Where can I obtain this ax filing service? And how much will it costs?

5. My salary is paid by the USA company, which is an 100% investment from an overseas country. If the salary is paid by the Overseas Office instead of its USA office, will there be a benefit for the company and/or me? If so what is it, and how do we obtain same?

6. I will be living on Rent in an apartment, and if I get the office to pay this can I obtain a tax benefit? Or can I pay same and get a tax benefit?

Thanks for all your kind guidance.

best regards,
rick

[MukatA]

Your income will be subject to FICA taxes, federal income tax and state income tax and other taxes. I won't matter if the amount is paid by the U.S. company or paid by a foreign company if that company has presence in the U.S.

Any rent payment by your company will be included in your income. You can deduct moving expenses in the first year of your tax return.

[Ricky Barnett]

Your income will be subject to FICA taxes, federal income tax and state income tax and other taxes. I won't matter if the amount is paid by the U.S. company or paid by a foreign company if that company has presence in the U.S.

Any rent payment by your company will be included in your income. You can deduct moving expenses in the first year of your tax return.

Dear MukatA - Thanks a lot for the answer, appreciate it very much. If do have a chance would you be able to tell me, the rough percentages that will be deducted from a salary. You could take as an example of $1000 income, then how much will be deducted for FICA,State & Federal taxes?

Thanks a mil.
Rgds,
Rick

[AtlantaTaxExpert]

Rick:

Social Security is 6.2% on the first $97,500; nothing above that amount.

Medicare is 1.45% on every dollar earned (no cap).

Federal taxes start at 10%, then 15%, then 25%, then 28%, then 33% and finally 35%. More than likely, you will end up in the 15% tax bracket.

California state tax tops out at 13%; yours will probably be 5-7%.

[Ricky Barnett]

Dear Atlanta TaxExpert;

Thank you very much for the precise answer, you hit the nail on the spot.
This is exactly what I was looking for you.

I will keep your details for future purposes too...

Have a great day. Thanks once again.

Rgds,
Ricky

Rick:

Social Security is 6.2% on the first $97,500; nothing above that amount.

Medicare is 1.45% on every dollar earned (no cap).

Federal taxes start at 10%, then 15%, then 25%, then 28%, then 33% and finally 35%. More than likely, you will end up in the 15% tax bracket.

California state tax tops out at 13%; yours will probably be 5-7%.

[AtlantaTaxExpert]

Glad to help!