Wednesday, March 15, 2006
Taxes
indianstudentsabroad
Today I was talking to a friend of mine and that talk resulted in my friend saving $3800. While discussing taxes it came to my attention that my friend had been paying Social Security and Medicare while she was still working on her OPT.
PLEASE TAKE NOTICE - On OPT you are not required to pay Social Security or Medicare. If your employer has been deducting that, then you are entitled to a refund just like my friend. Give Uncle Sam what is due, but no more than that.
Since this is the tax season my next few posts will be along this topic.
9:50 PM
Today I was talking to a friend of mine and that talk resulted in my friend saving $3800. While discussing taxes it came to my attention that my friend had been paying Social Security and Medicare while she was still working on her OPT.
PLEASE TAKE NOTICE - On OPT you are not required to pay Social Security or Medicare. If your employer has been deducting that, then you are entitled to a refund just like my friend. Give Uncle Sam what is due, but no more than that.
Since this is the tax season my next few posts will be along this topic.
9:50 PM
# posted by friends4u @ 3/15/2006 09:52:00 PM 
Comments:
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One thing I would like to make clear is that exemption from Medicare and Sociial security tax is only as an international student while on F-1. Once you start on your H1 then you are treated like any other US citizen for tax purposes.
Regarding your question about tax savings - for most people starting out, standard deduction makes the most sense. However one item which you can claim as deduction in addition to standard deduction is student loan interest. If you have a student loan in the US then you can deduct upto $2500 of interest payments made on your student loan. Keep in mind that you cannot include the principal amount while taking deduction. Also you should get 1098-E form from the lender if you made more than $600 in interest payments.
Regarding your question about tax savings - for most people starting out, standard deduction makes the most sense. However one item which you can claim as deduction in addition to standard deduction is student loan interest. If you have a student loan in the US then you can deduct upto $2500 of interest payments made on your student loan. Keep in mind that you cannot include the principal amount while taking deduction. Also you should get 1098-E form from the lender if you made more than $600 in interest payments.
Dont you all love taxes----ok ok, I meant hate. Anyhow some more information on taxes for international students. In addition to state and federal tax forms (1040 NR and 540 NR) international students, in this case students from India, need to also complete Form 8823 to maintain their status. Whether you earned any income or not, filing taxes is a requirement to maintain your status.
Another issue came up during our talks on taxes. Today is the 12th and last day for filing taxes is the 17th and still people are not clear which forms to fill out for taxes. If you are a student from India and on F-1 visa, then you have come abroad to study and are considered a non-resident in US. Even if your H1 (work visa) started in October but you were a student for a semester or two then you need to file the 1040NR form and not 1040. This also means use of tax softwares like Turbo Tax are not useful. However if it has been more than a year since your H1 started and you were on H1 for the calender year then you can file your taxes using the 1040 form.
Also since this blog is about the needs of indian students or students from India who were studying and recently started working, I also wanted to put out that the standard deduction is $5000 and another $3200 standard deduction as you are your own dependent. So deduct $8200 from your wages and if any student loan interest paid upto $2500.
All posts made here are an effort to guide newbies to the US system and in no way an authority. If your tax filing status is complex or you have multiple sources of income and intend to take numerous deductions please do consult a tax expert or post your specific question here and we will answer to the best of our ability.
Also since this blog is about the needs of indian students or students from India who were studying and recently started working, I also wanted to put out that the standard deduction is $5000 and another $3200 standard deduction as you are your own dependent. So deduct $8200 from your wages and if any student loan interest paid upto $2500.
All posts made here are an effort to guide newbies to the US system and in no way an authority. If your tax filing status is complex or you have multiple sources of income and intend to take numerous deductions please do consult a tax expert or post your specific question here and we will answer to the best of our ability.
i am planning to study abroad,U.S.A,iam planning for my undergraduation and iam currentlly 17.iwas wondering if you could give me all the information regarding staying in U.S.A.Iam planning to pursue mass communication as my majors.
# posted by 
: 11/10/06 10:43 AM
: 11/10/06 10:43 AM
I would request people posting questions to not post them as anonymous. Regarding obtaining detailed information for studying in the US we are more than helpful but I would prefer specific questions. Answering your question is a very long task. Please be more specific.
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online teaching
I think that teaching Online is still the best choice, cause we have high ROI´s with less investments, especially with SEO.
Thanks.
online teaching
If I have done my 12th in india n try to plan to move to UNITED STATES (FLORIDA) will my 12th certificate be applicable in UNITED STATES
Yes, 12th class certificates are recognized in the US however that alone is not sufficient. You will also need to appear in the SAT exams to get into a good college.
Hi, there,
I am ankit from india i am just about to complete my 12th in india, i am just 55-65% guy, if i go to Australia or canada for studies, will there any problems with my percentage? , should i go abroad for studies?
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I am ankit from india i am just about to complete my 12th in india, i am just 55-65% guy, if i go to Australia or canada for studies, will there any problems with my percentage? , should i go abroad for studies?
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