[ranchod]

|| Sarvam Krishna Arpanam ||

Hi,

I have moved to Chicago (from India) in December 2008. I would be grateful if someone can give me some insights on the following


I think that there is some tax- treaty between US and India. Can someone let me know at what rate will I be charged federal taxes? My employer has withheld as per the standard US slabs and has asked me for a link which would show up the rate considering the treaty benefits. My salary is at 40000 USD per year.

I am on a H1B visa from India

Thanks for your time and efforts

Regards
Prakash

[MukatA]

Did you receive W2 for 2008? If yes, is the income over $3500? Any federal income tax withheld? Read about H1-B: http://taxipay.blogspot.com/2008/08/us-visas.html

[ranchod]

Did you receive W2 for 2008? If yes, is the income over $3500? Any federal income tax withheld? Read about H1-B: Your U.S. Tax Return: The U.S. Visas

Income was less than 3500 and no federal taxes were withheld. But, my question is for year 2009. My employer has started with holding federal tax at normal rates. He says that there is some treaty with India which helps in reducing the federal tax. He wants a reference which shows the rate of fed IT for an Indian citizen working in US on a H1B visa.

[MukatA]

On H1-B, you pay taxes as normal U.S. resident or citizen. You do not get any treaty deduction.