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webwalker · Jun 29, 2010, 05:35 PM

Hi guys

I'm an Australian who is just in the process of getting my E3 visa. I have a completed and signed LCA and have my appointment at the for the interview in about week.

The Australian financial year is just about to end. And I will have about 3 weeks work in the 2010/2011 Australian financial year before I go off to NY to start my new job.

1) If my earning for the 2010/2011 Australian financial are less than the Australian tax free threshold, will I need to pay any tax in the end either here in Australia or in the States (assuming that I'm overseas for the duration of 2 years and have no further income in Australia).

2) I am in the computer industry and I need to purchase a computer once I get over there. If I was in Australia I could claim this as a tax deduction, does the US have similar tax deductions.

3) Will I have to pay tax on the income earned in one country in the other, if I've paid on that income already.

4) I will probably end up living in Manhattan and will be looking to rent an apartment. Is there anyway that this can be done that either the rent or the furniture I initial buy is a deduction. Since I am moving there for work... Again here in Australia depending on circumstances one would be able to claim it was a deduction because you are living away from home.

5) On the track as the above, is there any benefit in renting furniture vs buying furniture.

6) Is there anything that I should do when I get over there or before I go to help set myself up better from a tax perspective (i.e. beyond these points, is it worth seeing an Accountant as its likely that I can do a lot more than this).

Thanks for the help.

Cheers
Anthony

AtlantaTaxExpert · Jun 30, 2010, 02:27 PM

Anthony:

What is your marital status? That is critical in determining your filing status for 2010.

webwalker · Jun 30, 2010, 05:00 PM

I'm single...

webwalker · Jun 30, 2010, 05:01 PM

Although if its better I might be able to arrange getting married in the next couple of days... ;) jk

AtlantaTaxExpert · Jul 1, 2010, 02:15 PM

Tax-wise, being married IS better, but do NOT get married just for tax reasons... it costs MUCH more in the long term!

1 & 3) For the first year of your E-3 visa, you will file a dual-status return, on which yo will pay taxes ONLY on your U.S.-sourced income.

2) Yes, if you itemize (which you MUST do on a dual-status return) and IF the computer cost exceeds 2% of your U.S. income.

4) No. Such costs are deductible ONLY IF your stay is schedule to last for LESS than one year.

5) Depends on the cost of the furniture and whether you insist on buying new. Both Goodwill and the Salvation Army have excellent value when it comes to buying used furniture, and you can deduct the cost of that furniture by donating it back to Goodwill/Salvation Army when you leave.

6) As a foreign national, IRS rules allows you to claim SINGLE status with only ONE allowance on your W-4. There are no similar restrictions on the state/city tax forms, but SINGLE with one allowance is a good standard to follow. Seeing an accountant is, In my opinion, a waste of money unless you will be earning in excess of $250,000 per year while in NY City.