[Monks]

Hi,

I am an Australian. I joined a company in Florida, usa in Nov 08. Visa category E3. That means, I worked in USA for 3 months, but I was out of USA for more than 2 months out of the 3 months of 2008.

In 2009, I worked from Jan09 to May 09. I ended my job, but will be paid severence pay for next 3 months. Once again, I travelled out of USA for more than 3 momths in total out of the 5 months of 2009.

I am no longer living in the USA. I understand that there is a rule for non resident Aliens who have lived for a total of 180 days or something similar which exempts me from tax? Can you please clarify?
Second, what should I fill on form W4 to claim minimum deductions for the receipt of the Severence Pay?
What would be my total tax liability since I have only worked for such a less amount of time?

Pl help.
Monks

[AtlantaTaxExpert]

Monks:

The 183-day rules does NOT apply to you because your income is U.S.-sourced.

There are also special withholding rules for foreign national which prevents you from claiming more than ONE exemption on the Form W-4. This is done to ensure sufficient taxes are withheld from your salary to cover your tax liabilities.