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    vicky1981's Avatar
    vicky1981 Posts: 8, Reputation: 1
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    #1

    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert
     
    #2

    Feb 10, 2007, 11:39 PM
    Vicky:

    WHEN did you arrive in Texas?
    taxsearcher's Avatar
    taxsearcher Posts: 222, Reputation: 8
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    #3

    Feb 11, 2007, 11:17 AM
    Quote Originally Posted by vicky1981
    Hi,

    College Station (Texas)
    Sorry to hear it, you have my sympathy. ;)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
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    #4

    Feb 11, 2007, 10:26 PM
    TaxSearcher:

    Sarcasm does NOT become you!
    vicky1981's Avatar
    vicky1981 Posts: 8, Reputation: 1
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    #5

    Feb 13, 2007, 11:55 AM
    Quote 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...
    vicky1981's Avatar
    vicky1981 Posts: 8, Reputation: 1
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    #6

    Feb 13, 2007, 11:56 AM
    Quote Originally Posted by taxsearcher
    Sorry to hear it, you have my sympathy. ;)

    But why?? Is this not a Koool place dear! ;)
    vicky1981's Avatar
    vicky1981 Posts: 8, Reputation: 1
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    #7

    Feb 13, 2007, 11:58 AM
    Quote 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!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
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    #8

    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.
    taxsearcher's Avatar
    taxsearcher Posts: 222, Reputation: 8
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    #9

    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.
    vicky1981's Avatar
    vicky1981 Posts: 8, Reputation: 1
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    #10

    Feb 14, 2007, 11:14 AM
    Quote 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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert
     
    #11

    Feb 14, 2007, 10:43 PM
    Vivek:

    Yes, that sounds about right!
    vicky1981's Avatar
    vicky1981 Posts: 8, Reputation: 1
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    #12

    Feb 17, 2007, 12:57 PM
    Quote 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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert
     
    #13

    Feb 17, 2007, 04:43 PM
    Vivek:

    Yes, that's about right!
    taxsearcher's Avatar
    taxsearcher Posts: 222, Reputation: 8
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    #14

    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 ;)
    vicky1981's Avatar
    vicky1981 Posts: 8, Reputation: 1
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    #15

    Feb 17, 2007, 11:01 PM
    Quote 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
    vicky1981's Avatar
    vicky1981 Posts: 8, Reputation: 1
    New Member
     
    #16

    Feb 17, 2007, 11:06 PM
    Quote 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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert
     
    #17

    Feb 18, 2007, 05:02 PM
    Okie dokie!

    If you need my professional tax help, contact me at [email protected].
    lilyzzzz's Avatar
    lilyzzzz Posts: 2, Reputation: 1
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    #18

    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...
    --

    Quote 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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert
     
    #19

    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.

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