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    neil-e3's Avatar
    neil-e3 Posts: 16, Reputation: 1
    New Member
    		  
    #1

    Jul 13, 2008, 09:49 PM
    Allowances : Working away from home
    Firstly, Thanks for the input to all here. It really helps. Even
    If one does not have specefic questions - just reading the forum
    Increases my knowledge.

    The question I have is, I am going through process applying for
    E-3. Hope to get there soon ! I wanted to know are their any
    Allowances I will be able to claim ( joint tax return with my wife)
    As I am living away from home (Australia).

    What are the allowances if any ?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jul 13, 2008, 11:57 PM
    For allowances you should discuss with your employer. When you file your tax return as married filing jointly as resident, you will get standard deduction of 2 x $5,450 and exemption of 2 x $3500.
    neil-e3's Avatar
    neil-e3 Posts: 16, Reputation: 1
    New Member
    		  
    #3

    Jul 14, 2008, 12:09 AM
    Thanks MukatA,
    Allowances mean I was more so asking about deductions.

    So Deductions of ~11k as a joint resident which means that's
    a saving of 11k*my tax bracket.

    And, exeption of 7k means tax rate on that 7k = zero...

    Just to get my understanding right. Lets say I earn 75k.
    Taxable income = 75-11=64k
    and then first 7k will be zero taxed i.e. rest 57k will be
    taxed per the % rates...

    Is that right ?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Jul 14, 2008, 04:54 AM
    Yes, your taxable income is 57K. Download Forms 1040-EZ and 1040 from Internal Revenue Service and go through it.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Jul 14, 2008, 08:53 AM
    Actually, you also get to deduct about $7,000 ($3,500 for each personal exemption), so your taxable incoem will be about $50,000.
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