yurika
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yurika
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Posted on 02-26-17 7:18
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Hello: I guess some of you have experiences in filing the Tax. Let's say, I got all my salary in one state (A) till December 31 ( a fiscal year). Then, I moved to next state (State B) and started another job. Should I file Tax state A or B? My tax on social security and medcare has been deducted in W2 form by employee. Should my tax deduction will be income tax + medcare tax+ social security or just income tax? Thank you, I hope some of you can help. Yurika
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Laads
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Posted on 02-26-17 8:12
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I am no expert in this but as far as i know, You need to file tax on state A. If you just paid SS and medicare, which i hope not, Then you will be paying Federal and State tax( some of state, you dont need to pay State tax).
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Chipre Mama
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Posted on 02-26-17 10:27
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Let's say you lived in DC till 12/31/16 and moved to NY on 01/01/17. For FY 16, you will have to file DC as a full year resident for state. FY 17 you will file NY as a full year resident.
If you moved in middle of year 2016, then you will have to file partial resident for DC and partial resident for NY based on the number of days you lived in both states.
For federal part, it doesn't matter where do you live. And social and medicare are a standard 6.2 and 1.45% of you gross income on box 1 of your W-2 form. So you really don't have to worry about thay part. But for the federal tax withheld, you will either get a refund or owe tax, depending on your specific situation.
Last edited: 26-Feb-17 10:28 AM
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yurika
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Posted on 02-27-17 9:25
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Hi Laads and Chipremama- Thank you very much for these information. @Chipremama- As I understand that even they withheld social security tax and medicare tax, I just need to ignore that part. And, take only consideration of federal income tax withheld for further calculations. It means it is the only amount that I have to think, others are not, right? Thank you once again. Yurika
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Chipre Mama
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Posted on 02-27-17 1:35
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Social security and medicare are mandatory taxes withheld for US citizens and resident (only few classes of non resident alien are exempt from Social security and medicare tax). They are always a fixed percentage of your gross income. So there is nothing to worry about those. You don't ignore those taxes but fill them in the 1040 (w-2 part) for informational purpose only. However, federal tax withheld is the part of money that is withheld from your paycheck every time. And depending on the math (how much was withheld and how much you owe IRS and some other credits like education credit, health care credit, 401k, etc.), you will either have to pay or get the refund.
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yurika
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Posted on 02-27-17 2:49
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Hi Chipre mama:
Thank you for the previous response. It looks you have a lot of experiences regarding tax. I came to US as research scholar on April 2014 and filed tax for two years (2014, and 2015). In these two years, I used the form 1040 NR-EZ. Now, I find following information. - Scholars in J-1 status are exempt from FICA (medicare +social security) for the first 2 years of presence in the US. After that point, they become resident taxpayers and are subject to FICA withholdings.
As soon as I crossed two years, they started deducting FICA (starting from April of 2016). Now, based on above information, I think, I should be eligible to file as resident taxpayer.
Is it correct that I should use the form 1040 NR but not 1040 NR-EZ/or 1040?
This will help me to have clear idea as my 2-year completion happened only in April 2016.
Thanks, Yurika
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Chipre Mama
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Posted on 02-27-17 3:27
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https://www.irs.gov/individuals/international-taxpayers/foreign-student-liability-for-social-security-and-medicare-taxes So, this is the link to guidance on scholars on J-1 visa and when they are considered US Resident for tax purposes. https://www.irs.gov/individuals/international-taxpayers/introduction-to-residency-under-u-s-tax-law
https://www.irs.gov/individuals/international-taxpayers/taxation-of-resident-aliens
This 2nd link tells you how you can file 1040 EZ or 1040 as you are considered US resident for tax purposes.
Here is the excerpt from the IRS website.
Foreign scholars, teachers, researchers, trainees, physicians, au pairs, summer camp workers, and other non-students who enter the United States on J-1, Q-1 or Q-2 visas usually become RESIDENT ALIENS on January 1st of their third calendar year in the United States. Foreign students who enter the United States on F-1, J-1, M-1, Q-1 or Q-2 visas usually become resident aliens on January 1st of their sixth calendar year in the United States.
In a similar fashion, foreign scholars, teachers, researchers, trainees, physicians, au pairs, summer camp workers, and other non-students in J-1, Q-1 or Q-2 nonimmigrant status who have been in the United States less than two calendar years are still NONRESIDENT ALIENS and are still exempt from social security/Medicare taxes. However, foreign scholars, teachers, researchers, trainees, physicians, au pairs, summer camp workers, and other non-students in J-1, Q-1 or Q-2 nonimmigrant status who have been in the United States more than two calendar years are RESIDENT ALIENS and are liable for social security/Medicare taxes. When measuring an alien’s date of entry for the purposes of determining the five calendar years or the two calendar years mentioned above, the actual date of entry is not important. It is the calendar year of entry which is counted toward the two or five calendar years respectively. Thus, for example, a foreign student who enters the United States on December 31, 1998 counts 1998 as the first of his five years as an "exempt individual."
Last edited: 27-Feb-17 03:29 PM
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