Tax on 457

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Old Jul 20th 2006, 9:59 am
  #1  
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Default Tax on 457

Hi

Can anyone help, I've been here since March and just recieved my tax return.
I am working on a 457 and claiming LAHFA but I've noticed my employer has put my total gross on it not deducting LAHFA, will this be a problem?
On the tax calculator for non residence I owe more tax than paid

Thanks in advance

RIC
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Old Jul 20th 2006, 11:07 am
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Default Re: Tax on 457

Originally Posted by rickyl
Hi

Can anyone help, I've been here since March and just recieved my tax return.
I am working on a 457 and claiming LAHFA but I've noticed my employer has put my total gross on it not deducting LAHFA, will this be a problem?
On the tax calculator for non residence I owe more tax than paid
You probably need to see a tax expert but:

1. Ask your employer why LAHFA has been included, it ought not to be as far as I know.

2. You should probably be paying tax at resident rates, not non-resident.
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Old Jul 21st 2006, 1:00 am
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Default Re: Tax on 457

Hi, YOU ARE CLASSED AS A RESIDENT FOR TAX PURPOSES ON THIS VISA, I'M ON THE SAME ONE

CHEERS

Can anyone help, I've been here since March and just recieved my tax return.
I am working on a 457 and claiming LAHFA but I've noticed my employer has put my total gross on it not deducting LAHFA, will this be a problem?
On the tax calculator for non residence I owe more tax than paid

Thanks in advance

RIC[/QUOTE]
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Old Jul 21st 2006, 2:36 am
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Default Re: Tax on 457

agree with above. You are RESIDENT for tax purposes.

Check whteher employer reallyhas included LAFHA in your gross. They should not as it is not assesable for income tax. Any rent portion is totally tax free and the food portion has effectively been taxed at Fringe Benefits Tax rates.

So if total LAFHA is say $20k then that it is not subject to income tax and shoould not show up on your employers' year end statement.
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