4 ms·

Fun thing - I work in the Bay Area but because of my visa I don’t have to pay federal taxes and only pay state which is like 18%

by exdsq 4y ago

Alupis 4y ago
This is probably wrong, btw. You are obligated to pay federal income taxes if you are here on a visa for over a certain number of days during the year... which sounds like might apply to you.[1] Uncle Sam always gets paid. [1] https://www.nolo.com/legal-encyclopedia/how-resident-alien-taxed.html#:~:text=Nonimmigrant%20Visa%20Holders,satisfy%20the%20substantial%20presence%20test https://www.nolo.com/legal-encyclopedia/how-resident-alien-t....
- exdsq 4y ago
  I did speak to an immigration lawyer to check! It's something like if I stay beyond a certain date I'll have to pay but because it's short term it's only state taxes.
  - Alupis 4y ago
    Fair enough. Last I saw it was around 128 days total in a calendar year, which perhaps doesn't apply to you (the way you initially stated "you work in the bay area" seemed to imply you were here mostly full time). These things are worth staying current with an attorney every once in a while. I don't imagine it would be very fun to find out the wrong way.
junar 4y ago
> I don’t have to pay federal taxes and only pay state which is like 18% This sounds a bit off. California state income tax tops out at 13.3%, and the vast majority of folks owe less. Even if you include SDI/VPDI, that's only an additional 1.1% in 2022. The most common tax exemption for foreigners is an exemption from FICA taxes (Social Security + Medicare) [1], which commonly applies to certain folks with F/J/M/Q visas. But generally, they still owe both federal and state income taxes. In fact, as nonresident aliens, their effective federal income tax rate can be a bit higher due to not having the standard deduction and certain other tax benefits. Another relatively common benefit is the various tax treaties [2]. This may provide some relief from federal income tax, depending on the country and the visa status, but not necessarily a total exemption. [1] https://www.irs.gov/individuals/international-taxpayers/foreign-student-liability-for-social-security-and-medicare-taxes https://www.irs.gov/individuals/international-taxpayers/fore... [2] https://www.irs.gov/publications/p901 https://www.irs.gov/publications/p901

Fun thing - I work in the Bay Area but because of my visa I don’t have to pay federal taxes and only pay state which is like 18%

by exdsq 4y ago

Fun thing - I work in the Bay Area but because of my visa I don’t have to pay federal taxes and only pay state which is like 18%

Alupis 4y ago

This is probably wrong, btw. You are obligated to pay federal income taxes if you are here on a visa for over a certain number of days during the year... which sounds like might apply to you.[1] Uncle Sam always gets paid. [1] https://www.nolo.com/legal-encyclopedia/how-resident-alien-taxed.html#:~:text=Nonimmigrant%20Visa%20Holders,satisfy%20the%20substantial%20presence%20test https://www.nolo.com/legal-encyclopedia/how-resident-alien-t....

exdsq 4y ago
I did speak to an immigration lawyer to check! It's something like if I stay beyond a certain date I'll have to pay but because it's short term it's only state taxes.
- Alupis 4y ago
  Fair enough. Last I saw it was around 128 days total in a calendar year, which perhaps doesn't apply to you (the way you initially stated "you work in the bay area" seemed to imply you were here mostly full time). These things are worth staying current with an attorney every once in a while. I don't imagine it would be very fun to find out the wrong way.

junar 4y ago

> I don’t have to pay federal taxes and only pay state which is like 18% This sounds a bit off. California state income tax tops out at 13.3%, and the vast majority of folks owe less. Even if you include SDI/VPDI, that's only an additional 1.1% in 2022. The most common tax exemption for foreigners is an exemption from FICA taxes (Social Security + Medicare) [1], which commonly applies to certain folks with F/J/M/Q visas. But generally, they still owe both federal and state income taxes. In fact, as nonresident aliens, their effective federal income tax rate can be a bit higher due to not having the standard deduction and certain other tax benefits. Another relatively common benefit is the various tax treaties [2]. This may provide some relief from federal income tax, depending on the country and the visa status, but not necessarily a total exemption. [1] https://www.irs.gov/individuals/international-taxpayers/foreign-student-liability-for-social-security-and-medicare-taxes https://www.irs.gov/individuals/international-taxpayers/fore... [2] https://www.irs.gov/publications/p901 https://www.irs.gov/publications/p901