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Bhasu · Feb 27, 2006, 10:29 AM

Hi,

I have a question regarding the percentage of tax that would be deducted on my monthly pay. I am currently on my OPT and this is my second emplyer.

I am on OPT since Jan, 2006. Is there a fixed percent tax deduction for all OPT candidates? Does it depend on previous tax returns? The only time that I have filled my tax returns was in 2005. I am here in the US since Aug, 2004. I was working at a couple of places since Aug, 2004. I was a G.A in school and I was an intern for close to seven months starting in the summer of 2005 and ending December 2005. During that period I was on F-1 status.

I do not have the figures on how much I earned. Any help would be appreciated.

Thank you,
Bhasu

AtlantaTaxExpert · Feb 27, 2006, 10:41 AM

Bhasu:

Since you are under the F-1 visa as a student, you should not be paying Social Security (6.2%) or Medicare (1.45%) taxes. Those are flat taxes which are based on the percentages noted.

Income tax is another matter. It is a progressive tax which allows for a certain amount being non-taxable (at least $3,200 and perhaps as much as $8,200), then taxes at 10%, then 15%, then 25%, then 28%, the 33%, then 35%. How much is withheld depends on what you put on the W-4 in terms of how many exemptions you claimed. The more exemptions you claim, the less tax is withheld.