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tappusingh · Mar 20, 2007, 10:12 AM

Hi,

I (H1B) am here in the US since 25th Nov 2006 along with my wife (H4). I already file tax return for year 2006 ( filled jointly along with W7 application for my wife to get the TIN for her).
Now I am interested in knowing my filing status for year 2007.

Filing status mentioned as on my monthly salary slip( processed by paychex every month) :-

Federal -- M 04
NJ state -- M 00

I do not understand what does it mean? I am not sure whether I am paying the right taxes or not.
I am here on H1B and my wife is on H4. So my wife is on dependent visa(H4).
W4 form is little bit confusing for me.

What should be my filing status ?
Married with two exemptions or married with 3 exemptions or something else?

And What filing status should appear on my salary slip M __ against Federal and NJ Tax deduction?
Do I need to fill up W4 form again and send to employer for Year 2007?
If yes then what should be total against point 5 on the lower part of the W4 form in "Employees withholding allowance certificates" part?

I wanted to make sure that I am paying right taxes not less.

Help.
Thanks
Rajeev

AtlantaTaxExpert · Mar 22, 2007, 09:29 AM

Rajeev:

You will file as a resident alien for 2007.

You should claim TWO exemption on the W-4 and TWO exemptions on the state-equivalent form. That should withhold enough money from your salary to meet you tax liabilities and maybe get a small refund.

tappusingh · Mar 22, 2007, 09:33 AM

Thanks David.

Same ansewr also told by Counselor at law(Tax).

Thanks Very much for immediate response.

AtlantaTaxExpert · Mar 26, 2007, 12:43 PM

Glad to help!

TaxFill · Mar 26, 2007, 02:02 PM

Originally Posted by tappusingh

Hi,

I (H1B) am here in the US since 25th Nov 2006 along with my wife (H4). I already file tax return for year 2006 ( filled jointly along with W7 application for my wife to get the TIN for her).
Now I am interested in knowing my filing status for year 2007.

Filing status mentioned as on my monthly salary slip( processed by paychex every month) :-

Federal -- M 04
NJ state -- M 00

I do not understand what does it mean? I am not sure wether I am paying the right taxes or not.
I am here on H1B and my wife is on H4. So my wife is on dependent visa(H4).
W4 form is little bit confusing for me.

What should be my filing status ?
Married with two exemptions or married with 3 exemptions or something else?

And What filing status should appear on my salary slip M __ against Federal and NJ Tax deduction?
Do I need to fill up W4 form again and send to employer for Year 2007?
If yes then what should be total against point 5 on the lower part of the W4 form in "Employees withholding allowance certificates" part?

I wanted to make sure that I am paying right taxes not less.

help.
Thanks
Rajeev

Since you have already filed can you please answer my question below

I am filing F1040 . I received 1099-R (Distribution from pensions, annuitites, retirement or profit-sharing plans, IRAs, Insurance Contracts, etc.). My question is

1) where to enter gross distribution and federal income tax withheld. Line 15a & 15b of F1040 (asks about IRA distribution) and, 16a & 16b asks about Pensions and annuities.
Where should I add my gross distribution amount shown on 1099?

2) Distribution code on 1099 -R is 2( early distribution,exception applies). What does this means.

3) My wife worked for 2 months in india before I got married and her gross income was 900$ approximately. Should claim foreign tax credit for her? Should I file F1116 along with F1040? Your response is greatly appreciated.

AtlantaTaxExpert · Mar 30, 2007, 11:00 AM

1) Line 15a if the 1099-R is from an IRA. Line 16a from any other source.

2) It means that your distribution qualifies for an exception to the Early Withdrawal Penalty of 10%.

3) You can claim that credit, but you must either add her $900 in wages to Line 7 or show the income on Line #21. I prefer Line #21 because you can then identify the income source.