|
|
|
|
New Member
|
|
Feb 10, 2007, 11:13 AM
|
|
Tax in Texas
Hi,
I will be moving to a new company in College Station (Texas) on H1B. What will be tax on my income? My package is USD 50,000 per annum. Can I save the tax by investing my income somewhere ?
Thanks & Regards
Vicky
|
|
|
Senior Tax Expert
|
|
Feb 10, 2007, 11:39 PM
|
|
Vicky:
WHEN did you arrive in Texas?
|
|
|
Full Member
|
|
Feb 11, 2007, 11:17 AM
|
|
Originally Posted by vicky1981
Hi,
College Station (Texas)
Sorry to hear it, you have my sympathy. ;)
|
|
|
Senior Tax Expert
|
|
Feb 11, 2007, 10:26 PM
|
|
TaxSearcher:
Sarcasm does NOT become you!
|
|
|
New Member
|
|
Feb 13, 2007, 11:55 AM
|
|
Originally Posted by AtlantaTaxExpert
Vicky:
WHEN did you arrive in Texas?
I have not yet arrived to TEXAS. I will be joining the company on 1st March...
|
|
|
New Member
|
|
Feb 13, 2007, 11:56 AM
|
|
Originally Posted by taxsearcher
Sorry to hear it, you have my sympathy. ;)
But why?? Is this not a Koool place dear! ;)
|
|
|
New Member
|
|
Feb 13, 2007, 11:58 AM
|
|
Originally Posted by AtlantaTaxExpert
TaxSearcher:
Sarcasm does NOT become you!
If you can help me out to find out the answer that will be great!
|
|
|
Senior Tax Expert
|
|
Feb 13, 2007, 03:21 PM
|
|
Vicky:
Assuming you file as a single person and can claim only your personal exemption and the standard deduction, your federal tax will be $6,939 on $50,000 in annual income. Texas has no state income tax.
You will also be liable for Social Security (at 6.2%) and Medicare (1.45%), which tax at the flat rates noted above.
You can reduce your income tax by investing $4,000 in a traditional IRA, but only if you cannot participate in your employer's retirement plan, which you probably cannot until you have been with the company for a few years. If you can stand paying the income tax noted above, you should actually go woth a Roth IRA. It generates NO immediate tax benefit, but it grows tax-free. That allows it to be a great retirement benefit if you leave it alone.
|
|
|
Full Member
|
|
Feb 13, 2007, 03:51 PM
|
|
I guess if you are into cow tipping and college boys playing dress up as soldiers then you'll love it!
I agree with ATE. But if you are just moving to the US for the first time, your situation will differ a little.
|
|
|
New Member
|
|
Feb 14, 2007, 11:14 AM
|
|
Originally Posted by AtlantaTaxExpert
Vicky:
Assuming you file as a single person and can claim only your personal exemption and the standard deduction, your federal tax will be $6,939 on $50,000 in annual income. Texas has no state income tax.
You will also be liable for Social Security (at 6.2%) and Medicare (1.45%), which tax at the flat rates noted above.
You can reduce your income tax by investing $4,000 in a traditional IRA, but only if you cannot participate in your employer's retirement plan, which you probably cannot until you have been with the company for a few years. If you can stand paying the income tax noted above, you should actually go woth a Roth IRA. It generates NO immediate tax benefit, but it grows tax-free. That allows it to be a great retirement benefit if you leave it alone.
Hi,
Thanks a lot for the effort. One more thing. The final figure of tax in % to my total income will be 13.878 (( 6939/50000) * 100 ) + 6.2 + 1.45 = 21.528 % of $ 50,000.
Is this correct ? These figures are applicable on H1B or not ? As I am having H1B.
Thanks & Regards
Vivek Ranjan
|
|
|
Senior Tax Expert
|
|
Feb 14, 2007, 10:43 PM
|
|
Vivek:
Yes, that sounds about right!
|
|
|
New Member
|
|
Feb 17, 2007, 12:57 PM
|
|
Originally Posted by AtlantaTaxExpert
Vicky:
Assuming you file as a single person and can claim only your personal exemption and the standard deduction, your federal tax will be $6,939 on $50,000 in annual income. Texas has no state income tax.
You will also be liable for Social Security (at 6.2%) and Medicare (1.45%), which tax at the flat rates noted above.
You can reduce your income tax by investing $4,000 in a traditional IRA, but only if you cannot participate in your employer's retirement plan, which you probably cannot until you have been with the company for a few years. If you can stand paying the income tax noted above, you should actually go woth a Roth IRA. It generates NO immediate tax benefit, but it grows tax-free. That allows it to be a great retirement benefit if you leave it alone.
Hi,
Thanks a lot for the effort. One more thing. The final figure of tax in % to my total income will be 13.878 (( 6939/50000) * 100 ) + 6.2 + 1.45 = 21.528 % of $ 50,000.
Is this correct ? These figures are applicable on H1B or not ? As I am having H1B.
Thanks & Regards
Vivek Ranjan
|
|
|
Senior Tax Expert
|
|
Feb 17, 2007, 04:43 PM
|
|
Vivek:
Yes, that's about right!
|
|
|
Full Member
|
|
Feb 17, 2007, 05:28 PM
|
|
Not only do you have to pay all that tax but you also have to live with all those Aggies :eek: . Lucky you, huh ;)
|
|
|
New Member
|
|
Feb 17, 2007, 11:01 PM
|
|
Originally Posted by vicky1981
Hi,
Thanks a lot for the effort. One more thing. The final figure of tax in % to my total income will be 13.878 (( 6939/50000) * 100 ) + 6.2 + 1.45 = 21.528 % of $ 50,000.
Is this correct ? These figures are applicable on H1B or not ? As i am having H1B.
Thanks & Regards
Vivek Ranjan
Hi,
Thanks a lot for the effort. One more thing. The final figure of tax in % to my total income will be 13.878 (( 6939/50000) * 100 ) + 6.2 + 1.45 = 21.528 % of $ 50,000.
Is this correct ? These figures are applicable on H1B or not ? As I am having H1B.
Thanks & Regards
Vivek Ranjan
|
|
|
New Member
|
|
Feb 17, 2007, 11:06 PM
|
|
Originally Posted by AtlantaTaxExpert
Vivek:
Yes, that sounds about right!
Hi,
Good Day!
Please ignore my earlier update as I had not seen your answer. It has been great conversing with expert like you.I will get back to you if I have any questions.:)
Warm wishes...
Thanks & Regards
Vivek Ranjan
|
|
|
Senior Tax Expert
|
|
Feb 18, 2007, 05:02 PM
|
|
Okie dokie!
If you need my professional tax help, contact me at [email protected].
|
|
|
New Member
|
|
Jun 1, 2007, 02:55 PM
|
|
Vicky:
Need your advice on my situation:
I am a single and a fresh immigrant came with green card, live in US from
Dec.2005 and start to work from March, 2006.
I didn't file tax for 2005 since I didn't have income.
I filed tax return for 2006 by April,2007 prepared by myself. But I only
Claimed basic tax exemption of income(first $7000). A friend told me there
Are more I should be able to get deduction.For instance, state sales tax(I
Bought a used car), relocation cost(since I came from other country)...
Also, he said I may qualify for non-resident category.
Now I am thinking to file a tax amendment.
If you know what's the typical deductible items for a person like me:
Single, gross income($60000), no-house,no-dependent, live in TX, US since
Dec. 2005
What is the list of the deduction I can claim for credit?
I appreciate any advice. Please shed some light on the american myth tax
Regulations..
Many many thanks...
--
Originally Posted by vicky1981
Hi,
I will be moving to a new company in College Station (Texas) on H1B. What will be tax on my income? My package is USD 50,000 per annum. Can i save the tax by investing my income somewhere ?
Thanks & Regards
Vicky
|
|
|
Senior Tax Expert
|
|
Jun 4, 2007, 07:45 AM
|
|
Lily:
You CAN claim relocations costs using Form 3903.
The sales tax is an ITEMIZED deduction, which most people cannot claim unless they own a home and are paying a home mortgage.
You will have to amend your return using Form 1040X.
If you want help, contact me at the email address below.
|
|
Question Tools |
Search this Question |
|
|
Add your answer here.
Check out some similar questions!
2006 tax: Jan-July Iowa F-1, August-Dec Texas OPT
[ 1 Answers ]
My visa status (2006) is: (I'm single, never married)
Jan-July, F-1, Iowa
August-Dec, OPT, Texas (I'm expected to have the H1B issued by this fall)
Q1: What kind of forms I have to work on?
Q2: Is it true that I need 2 W-2 s, one from my old school in Iowa the other...
Texas Tax Refund
[ 3 Answers ]
:confused:
I live in Texas and I have a credit card judgement against me. When I received the judgement papers my husband was very ill and ended up in the hospital, so I didn't respond to the judgement Can they take money out of my checking account, or my income tax refund, or garnish my wages....
Garnishment in Texas
[ 1 Answers ]
I have a judgement against me for a very large amount on an unsecured credit card. Can my checking account be frozen? Someone told me that the company can freeze my checking account. Is that true?
Xhalfpintx
F1 in Oklahoma-OPT in Texas-H1B in Texas
[ 7 Answers ]
Hello all!!!:)
First at all, this is a great forum! I've been reading a lot of posts, and they are very very useful. Now I got a question for the tax experts and non-experts too:p!!
This is my case:
I was studying and working as a Teacher Assistant in Oklahoma from 08.26.02 to 03.06.05....
Texas
[ 1 Answers ]
Want to know what the song is called from the Texas video that starred Alan Rickman . Texas band with Sharlene Spiterri as lead.
View more questions
Search
|