[sonuataskcom]

Hello Friends,

I am trying to accommodate many questions from lots of stunt's like us. So do not panic if it give u pain.
This must be question of many more student as last time many h1 files not picked up or got rejected.
There is no need to Fully Understand the following situation and finding the One answer as in One whole Question. Just answers to each individual section unless I have explicitli mentioned to include any privious section.

All right here is the setuation.
Indian Student, Single, No Dependent. NJ. (When ever possible mentione Other states rules also)
came USA AUG-2005
Graduate MAY-2007
OPT STARTS JUNE 2007
OPT TERMINATE AND NEW CPT STARTS MARCH 2008 (GOT ADMISION + CPT in NEW COLLEGE) to TILL DATE

through out the opt(1st employer) and cpt(New 2nd employer) period student is working full time.

1) student has to file as residant since he is here from 2005
2) he can not claim standerd deduction as his job is not temporary or Hourly base.
some people do that but there is risk in it.
3) Income during OPT period is not excempt from TAX. I think there is distributed TAX
liability based on your gross income. Example if your income is under 5000 no tax
liability, if your income is 5000 to 10000 7%, if 10000 to 25000 11.5% if 25000 to 40000
18% etc... I am not sure this percentage also vary with your status as well as your
income combine. (this percentage are randome numbers)
4) IS Income during CPT period is Excempt from TAX? Or there is also same logic as
above. How student can find his TAX liability during any status, is there any proper link
for this?

5) here are some scenarios to think on it.
During Masters, Student worked ON Campus 20 hrs as allowed in college for total first 2 semister.
(it can be $8-$10 per Hour)
For tax calculation purpose we will keep this for whole one year up to end of DEC 2006. We will not mix it with next FY with CPT income. So here we are concern with 2006 tax filing of student.
What will be TAX liability if Gross Income is 5000?
What will be TAX liability if Gross Income is 10,000?
What will be TAX liability if Gross Income is 15,000?


ADDED to aboove During Master, Student got CPT and worked 20hrs/week as allowed in last semister.
(It can be $20 Per Hour).
What will be TAX liability if Gross Income is 20000?
What will be TAX liability if Gross Income is 25,000?
What will be TAX liability if Gross Income is 30,000?
Here we will keep 2 cases.
Case 1 if we assume whole 2007 year is on CPT what will be TAX filling liability?
Case 2 if later 6 months are OPT but income During OPT is Zero, what will be Tax liability?
Case 3 if Later 6 Months are OPT and additional income during that period is already added to above figures.(say 50% of Gross income is of OPT Duration and 50% is of CPT Duration)?

6) As a bit twisted but very comon last 2008 year, many students has finished OPT, not get H1 or OPT Extension, so they got admission in new college or in their college it self with Full time CPT provision.
So now they are working Full time 40hrs/week (or to be safe side from IRS showing 20hrs on payroll with doubling their pay rate) but on CPT Status. What can be their Tax Liability?
Say for FY 2008 student's Gross income is 35K on CPT.
Say for FY 2008 student's Gross income is 45K on CPT.
Say for FY 2008 student's Gross income is 55K on CPT.
Say for FY 2008 student's Gross income is 65K on CPT.

Thanks
Sonu

[MukatA]

You are exempt from residency for 5 years on F1/OPT/CPT. You do not pay FICA taxes but your income is subject to federal and state income taxes.
Your will file nonresident tax return and Form 8843 and claim deduction as per tax treaty.
Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

[AtlantaTaxExpert]

This appears to be a homework assignment.

For this reason, I will NOT post an answer. You do homework to LEARN. Having a tax expert answer the question for you defeats the purpose for going to school.

[sonuataskcom]

Yes u thought right, it is a home work, and not for one student, many more, all over the USA. I do not know how many students do not have answers of those question.

[AtlantaTaxExpert]

No, I actually think this is a complex homework question for a tax course of some type, rather than a genealized question posted on behalf of all international students.

In any event, I will not answer based on my earlier reasoning.

If other students need tax advice, they can post their own situations. There are several very knowledgeable tax experts available on this forum to answer such questions as they arise.