Tavo

Hello everybody,

Have any of you received a letter from H.R in your companies, letting
you know that the IRS has a new taxation rule for non-resident aliens?

These are the CHANGES:
1. Don't claim an exemption from withholding.
2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
MARITAL STATUS (married or single) OR kids.
3. Claim only one (1) allowance.
4. Write "nonresident alien" above the dotted line on line 6 of form
W-4.
5. Don't use the standard deduction in the taxes (that means use 0
instead).
5. Changer your W-4 ASAP because this change will apply to wages paid
on or after January 1, 2006.

No the government is going to take a bigger chunk of our salary !!! how
much? I don't know because H.R in my company doesn't know anything
about it.

If any of you guys is aware of this change, I'd appreciate any advice
and how to fill up the form W-4 and also what's going to happen next
year when I do my taxes: still have to file as SINGLE?

what about if you have kids born in the States and also if your US
residence is in process?

PLEASE HELP!!!!

THANKS.

J. J. Farrell

tavo wrote:
    > Have any of you received a letter from H.R in your companies, letting
    > you know that the IRS has a new taxation rule for non-resident aliens?
    > These are the CHANGES:
    > 1. Don't claim an exemption from withholding.
    > 2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    > MARITAL STATUS (married or single) OR kids.
    > 3. Claim only one (1) allowance.
    > 4. Write "nonresident alien" above the dotted line on line 6 of form
    > W-4.
    > 5. Don't use the standard deduction in the taxes (that means use 0
    > instead).
    > 5. Changer your W-4 ASAP because this change will apply to wages paid
    > on or after January 1, 2006.
    > No the government is going to take a bigger chunk of our salary !!! how
    > much? I don't know because H.R in my company doesn't know anything
    > about it.

If HR in your company sent you a letter with specific instructions, how
can they possibly "not know anything about it"? Ask them why they sent
the letter and who specified the contents.

    > If any of you guys is aware of this change, I'd appreciate any advice
    > and how to fill up the form W-4 and also what's going to happen next
    > year when I do my taxes: still have to file as SINGLE?
    > what about if you have kids born in the States and also if your US
    > residence is in process?
    >
    > PLEASE HELP!!!!
    >
    > THANKS.

Tavo

My company doesn't know anything (yet) becasue our payroll is handled
by outsourcing and they just want me to fill up form W-4 claiming ZERO
DEPENDENTS as if single.


J. J. Farrell wrote:
    > tavo wrote:
    > >
    > > Have any of you received a letter from H.R in your companies, letting
    > > you know that the IRS has a new taxation rule for non-resident aliens?
    > >
    > > These are the CHANGES:
    > > 1. Don't claim an exemption from withholding.
    > > 2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    > > MARITAL STATUS (married or single) OR kids.
    > > 3. Claim only one (1) allowance.
    > > 4. Write "nonresident alien" above the dotted line on line 6 of form
    > > W-4.
    > > 5. Don't use the standard deduction in the taxes (that means use 0
    > > instead).
    > > 5. Changer your W-4 ASAP because this change will apply to wages paid
    > > on or after January 1, 2006.
    > >
    > > No the government is going to take a bigger chunk of our salary !!! how
    > > much? I don't know because H.R in my company doesn't know anything
    > > about it.
    > If HR in your company sent you a letter with specific instructions, how
    > can they possibly "not know anything about it"? Ask them why they sent
    > the letter and who specified the contents.
    > > If any of you guys is aware of this change, I'd appreciate any advice
    > > and how to fill up the form W-4 and also what's going to happen next
    > > year when I do my taxes: still have to file as SINGLE?
    > >
    > > what about if you have kids born in the States and also if your US
    > > residence is in process?
    > >
    > > PLEASE HELP!!!!
    > >
    > > THANKS.

Capt. Tuttle

tavo wrote:
    > My company doesn't know anything (yet) becasue our payroll is handled
    > by outsourcing and they just want me to fill up form W-4 claiming ZERO
    > DEPENDENTS as if single.
    >
    >
    > J. J. Farrell wrote:
    >
    >>tavo wrote:
    >>>Have any of you received a letter from H.R in your companies, letting
    >>>you know that the IRS has a new taxation rule for non-resident aliens?
    >>>These are the CHANGES:
    >>>1. Don't claim an exemption from withholding.
    >>>2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    >>>MARITAL STATUS (married or single) OR kids.
    >>>3. Claim only one (1) allowance.
    >>>4. Write "nonresident alien" above the dotted line on line 6 of form
    >>>W-4.
    >>>5. Don't use the standard deduction in the taxes (that means use 0
    >>>instead).
    >>>5. Changer your W-4 ASAP because this change will apply to wages paid
    >>>on or after January 1, 2006.
    >>>No the government is going to take a bigger chunk of our salary !!! how
    >>>much? I don't know because H.R in my company doesn't know anything
    >>>about it.
    >>If HR in your company sent you a letter with specific instructions, how
    >>can they possibly "not know anything about it"? Ask them why they sent
    >>the letter and who specified the contents.
    >>>If any of you guys is aware of this change, I'd appreciate any advice
    >>>and how to fill up the form W-4 and also what's going to happen next
    >>>year when I do my taxes: still have to file as SINGLE?
    >>>what about if you have kids born in the States and also if your US
    >>>residence is in process?
    >>>PLEASE HELP!!!!
    >>>THANKS.
    >
    >

You can start your search for answers here:
http://www.irs.gov/businesses/small/...=96477,00.html
or here:
http://www.irs.gov/businesses/small/...105250,00.html

AdobePinon

If you're H1B you'd ordinarilly be filing as resident for taxes (e.g., 1040 not 1040-NR) anyway.

Disclaimer: Not tax advice.

J. J. Farrell

tavo wrote:
    > My company doesn't know anything (yet) becasue our payroll is handled
    > by outsourcing and they just want me to fill up form W-4 claiming ZERO
    > DEPENDENTS as if single.
    > J. J. Farrell wrote:
    > > tavo wrote:
    > > >
    > > > Have any of you received a letter from H.R in your companies, letting
    > > > you know that the IRS has a new taxation rule for non-resident aliens?
    > > >
    > > > These are the CHANGES:
    > > > 1. Don't claim an exemption from withholding.
    > > > 2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    > > > MARITAL STATUS (married or single) OR kids.
    > > > 3. Claim only one (1) allowance.
    > > > 4. Write "nonresident alien" above the dotted line on line 6 of form
    > > > W-4.
    > > > 5. Don't use the standard deduction in the taxes (that means use 0
    > > > instead).
    > > > 5. Changer your W-4 ASAP because this change will apply to wages paid
    > > > on or after January 1, 2006.
    > > >
    > > > No the government is going to take a bigger chunk of our salary !!! how
    > > > much? I don't know because H.R in my company doesn't know anything
    > > > about it.
    > >
    > > If HR in your company sent you a letter with specific instructions, how
    > > can they possibly "not know anything about it"? Ask them why they sent
    > > the letter and who specified the contents.
    > >
    > > > If any of you guys is aware of this change, I'd appreciate any advice
    > > > and how to fill up the form W-4 and also what's going to happen next
    > > > year when I do my taxes: still have to file as SINGLE?
    > > >
    > > > what about if you have kids born in the States and also if your US
    > > > residence is in process?

As far as I'm aware, nothing has changed. Normal H-1B employees (those
who work in the ordinary way in the USA) are classed as resident aliens
for tax purposes. I've not checked in detail, but the rules above look
like what are applied to aliens who are non-resident for tax purposes.
They might apply to H-1Bs during the year they first arrive in the USA,
or during the year they leave, but they do not apply to someone who
expects to work all year as an H-1B, or who expects to adjust status to
Permanent Resident during the year.

It looks like someone has screwed up.

Tavo

I'm still confused because H.R (my company) told me they received that
notice from the payroll company who had been noticed from the IRS.

Based on the IRS, I'm considered a RESIDENT for TAX purposes, because
in the past 6 years I've been here almost 355 days per year. See below
what the IRS rule says:
"You will be considered a U.S. resident for tax purposes if you meet
the substantial presence test for the calendar year. To meet this test,
you must be physically present in the United States on at least:
31 days during the current year, and
183 days during the 3-year period that includes the current year and
the 2 years immediately before that, counting:
All the days you were present in the current year, and
1/3 of the days you were present in the first year before the current
year, and
1/6 of the days you were present in the second year before the current
year".

H.R in my company just pointed my to read these articles from IRS,
which mention the new regulations:
http://www.irs.gov/pub/irs-pdf/p15.pdf
Page 2: New procedure for withholding income taxes on the wages of
nonresident alien employees.
Page 14: New procedure for withholding income taxes on the wages of
nonresident alien employees.

My thought is that the payroll company is not giving the right
information to H.R in my company and they just want me to follow those
directions and change my form W-4 and pay taxes as a non-resident, no
matter that I qualify AS A RESIDENT FOR TAX PURPOSES.

What should I do? contact the IRS?


AdobePinon wrote:
    > > Hello everybody,
    > >
    > > Have any of you received a letter from H.R in your companies, letting
    > > you know that the IRS has a new taxation rule for non-resident aliens?
    > >
    > > These are the CHANGES:
    > > 1. Don't claim an exemption from withholding.
    > > 2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    > > MARITAL STATUS (married or single) OR kids.
    > > 3. Claim only one (1) allowance.
    > > 4. Write "nonresident alien" above the dotted line on line 6 of form
    > > W-4.
    > > 5. Don't use the standard deduction in the taxes (that means use 0
    > > instead).
    > > 5. Changer your W-4 ASAP because this change will apply to wages paid
    > > on or after January 1, 2006.
    > >
    > > No the government is going to take a bigger chunk of our salary !!!
    > > how
    > > much? I don't know because H.R in my company doesn't know anything
    > > about it.
    > >
    > > If any of you guys is aware of this change, I'd appreciate any advice
    > > and how to fill up the form W-4 and also what's going to happen next
    > > year when I do my taxes: still have to file as SINGLE?
    > >
    > > what about if you have kids born in the States and also if your US
    > > residence is in process?
    > >
    > > PLEASE HELP!!!!
    > >
    > > THANKS.
    > If you're H1B you'd ordinarilly be filing as resident for taxes (e.g.,
    > 1040 not 1040-NR) anyway.
    > Disclaimer: Not tax advice.
    >
    > --
    > Posted via http://britishexpats.com

Capt. Tuttle

tavo wrote:
    > I'm still confused because H.R (my company) told me they received that
    > notice from the payroll company who had been noticed from the IRS.
    >
    > Based on the IRS, I'm considered a RESIDENT for TAX purposes, because
    > in the past 6 years I've been here almost 355 days per year. See below
    > what the IRS rule says:
    > "You will be considered a U.S. resident for tax purposes if you meet
    > the substantial presence test for the calendar year. To meet this test,
    > you must be physically present in the United States on at least:
    > 31 days during the current year, and
    > 183 days during the 3-year period that includes the current year and
    > the 2 years immediately before that, counting:
    > All the days you were present in the current year, and
    > 1/3 of the days you were present in the first year before the current
    > year, and
    > 1/6 of the days you were present in the second year before the current
    > year".
    >
    > H.R in my company just pointed my to read these articles from IRS,
    > which mention the new regulations:
    > http://www.irs.gov/pub/irs-pdf/p15.pdf
    > Page 2: New procedure for withholding income taxes on the wages of
    > nonresident alien employees.
    > Page 14: New procedure for withholding income taxes on the wages of
    > nonresident alien employees.
    >
    > My thought is that the payroll company is not giving the right
    > information to H.R in my company and they just want me to follow those
    > directions and change my form W-4 and pay taxes as a non-resident, no
    > matter that I qualify AS A RESIDENT FOR TAX PURPOSES.
    >
    > What should I do? contact the IRS?
    >
    >
    > AdobePinon wrote:
    >
    >>>Hello everybody,
    >>>Have any of you received a letter from H.R in your companies, letting
    >>>you know that the IRS has a new taxation rule for non-resident aliens?
    >>>These are the CHANGES:
    >>>1. Don't claim an exemption from withholding.
    >>>2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    >>> MARITAL STATUS (married or single) OR kids.
    >>>3. Claim only one (1) allowance.
    >>>4. Write "nonresident alien" above the dotted line on line 6 of form
    >>> W-4.
    >>> 5. Don't use the standard deduction in the taxes (that means use 0
    >>> instead).
    >>>5. Changer your W-4 ASAP because this change will apply to wages paid
    >>> on or after January 1, 2006.
    >>>No the government is going to take a bigger chunk of our salary !!!
    >>>how
    >>>much? I don't know because H.R in my company doesn't know anything
    >>>about it.
    >>>If any of you guys is aware of this change, I'd appreciate any advice
    >>>and how to fill up the form W-4 and also what's going to happen next
    >>>year when I do my taxes: still have to file as SINGLE?
    >>>what about if you have kids born in the States and also if your US
    >>>residence is in process?
    >>>PLEASE HELP!!!!
    >>>THANKS.
    >>If you're H1B you'd ordinarilly be filing as resident for taxes (e.g.,
    >>1040 not 1040-NR) anyway.
    >>Disclaimer: Not tax advice.
    >>--
    >>Posted via http://britishexpats.com
    >
    >


I am no tax expert either, but it seems to me, and I could be totally
wrong, but....
You are a "RESIDENT FOR TAX PURPOSES" when you file your yearly tax
return (1040). However, due to this new rule you must file a new W-4 as
instructed.
Now the question is: Will you get the money back as a refund, or will
they also change the 1040?

Joe Feise

tavo wrote on 11/15/06 07:58:

    > I'm still confused because H.R (my company) told me they received that
    > notice from the payroll company who had been noticed from the IRS.
    >
    > Based on the IRS, I'm considered a RESIDENT for TAX purposes, because
    > in the past 6 years I've been here almost 355 days per year. See below
    > what the IRS rule says:
    > "You will be considered a U.S. resident for tax purposes if you meet
    > the substantial presence test for the calendar year. To meet this test,
    > you must be physically present in the United States on at least:
    > 31 days during the current year, and
    > 183 days during the 3-year period that includes the current year and
    > the 2 years immediately before that, counting:
    > All the days you were present in the current year, and
    > 1/3 of the days you were present in the first year before the current
    > year, and
    > 1/6 of the days you were present in the second year before the current
    > year".
    >
    > H.R in my company just pointed my to read these articles from IRS,
    > which mention the new regulations:
    > http://www.irs.gov/pub/irs-pdf/p15.pdf
    > Page 2: New procedure for withholding income taxes on the wages of
    > nonresident alien employees.
    > Page 14: New procedure for withholding income taxes on the wages of
    > nonresident alien employees.


Yes, but you are not a nonresident for tax purposes. So these rules don't apply
to you.
See IRS Publication 519, Tax Guide for Aliens.

-Joe
--
I am not a lawyer.
For reliable advice, consult a competent immigration attorney.

rogercute2002

Calm down man. You're fine. It doesn't apply to you.
You're a resident alien under tax purposes.

tavo wrote:
    > I'm still confused because H.R (my company) told me they received that
    > notice from the payroll company who had been noticed from the IRS.
    > Based on the IRS, I'm considered a RESIDENT for TAX purposes, because
    > in the past 6 years I've been here almost 355 days per year. See below
    > what the IRS rule says:
    > "You will be considered a U.S. resident for tax purposes if you meet
    > the substantial presence test for the calendar year. To meet this test,
    > you must be physically present in the United States on at least:
    > 31 days during the current year, and
    > 183 days during the 3-year period that includes the current year and
    > the 2 years immediately before that, counting:
    > All the days you were present in the current year, and
    > 1/3 of the days you were present in the first year before the current
    > year, and
    > 1/6 of the days you were present in the second year before the current
    > year".
    > H.R in my company just pointed my to read these articles from IRS,
    > which mention the new regulations:
    > http://www.irs.gov/pub/irs-pdf/p15.pdf
    > Page 2: New procedure for withholding income taxes on the wages of
    > nonresident alien employees.
    > Page 14: New procedure for withholding income taxes on the wages of
    > nonresident alien employees.
    > My thought is that the payroll company is not giving the right
    > information to H.R in my company and they just want me to follow those
    > directions and change my form W-4 and pay taxes as a non-resident, no
    > matter that I qualify AS A RESIDENT FOR TAX PURPOSES.
    > What should I do? contact the IRS?
    > AdobePinon wrote:
    > > > Hello everybody,
    > > >
    > > > Have any of you received a letter from H.R in your companies, letting
    > > > you know that the IRS has a new taxation rule for non-resident aliens?
    > > >
    > > > These are the CHANGES:
    > > > 1. Don't claim an exemption from withholding.
    > > > 2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    > > > MARITAL STATUS (married or single) OR kids.
    > > > 3. Claim only one (1) allowance.
    > > > 4. Write "nonresident alien" above the dotted line on line 6 of form
    > > > W-4.
    > > > 5. Don't use the standard deduction in the taxes (that means use 0
    > > > instead).
    > > > 5. Changer your W-4 ASAP because this change will apply to wages paid
    > > > on or after January 1, 2006.
    > > >
    > > > No the government is going to take a bigger chunk of our salary !!!
    > > > how
    > > > much? I don't know because H.R in my company doesn't know anything
    > > > about it.
    > > >
    > > > If any of you guys is aware of this change, I'd appreciate any advice
    > > > and how to fill up the form W-4 and also what's going to happen next
    > > > year when I do my taxes: still have to file as SINGLE?
    > > >
    > > > what about if you have kids born in the States and also if your US
    > > > residence is in process?
    > > >
    > > > PLEASE HELP!!!!
    > > >
    > > > THANKS.
    > >
    > > If you're H1B you'd ordinarilly be filing as resident for taxes (e.g.,
    > > 1040 not 1040-NR) anyway.
    > >
    > > Disclaimer: Not tax advice.
    > >
    > > --
    > > Posted via http://britishexpats.com

Ivonne

OK, assuming, that you worked for a full year (and therefore being a resident for Tax purposes):

1st of all: Nobody can FORCE you to change your W4. This just sounds like a guideline. 2nd, it doesn't matter, what you fill into your W4. For all the IRS cares, you could claim 100 allowances (I'm exaggerating of course) and put down married as status resulting in tax withholdings of $0.00 during the year. What ever is filled into the W4 ONLY effects the amount of taxes being withheld during the year. At the beginning of the new year, with filing your tax return, the ACTUAL situation (married or single / how many allowances, dependents etc...) counts. And if, during the year, too much has been withheld, you get a refund, if too little has been withheld, you'll owe taxes. What ever you fill into the W4 doesn't change the actual tax amount that you'll be liable for at the end of a tax year, it just changes the amount withheld during the year.

J. J. Farrell

tavo wrote:
    > I'm still confused because H.R (my company) told me they received that
    > notice from the payroll company who had been noticed from the IRS.
    > Based on the IRS, I'm considered a RESIDENT for TAX purposes, because
    > in the past 6 years I've been here almost 355 days per year. See below
    > what the IRS rule says:
    > "You will be considered a U.S. resident for tax purposes if you meet
    > the substantial presence test for the calendar year. To meet this test,
    > you must be physically present in the United States on at least:
    > 31 days during the current year, and
    > 183 days during the 3-year period that includes the current year and
    > the 2 years immediately before that, counting:
    > All the days you were present in the current year, and
    > 1/3 of the days you were present in the first year before the current
    > year, and
    > 1/6 of the days you were present in the second year before the current
    > year".
    > H.R in my company just pointed my to read these articles from IRS,
    > which mention the new regulations:
    > http://www.irs.gov/pub/irs-pdf/p15.pdf
    > Page 2: New procedure for withholding income taxes on the wages of
    > nonresident alien employees.
    > Page 14: New procedure for withholding income taxes on the wages of
    > nonresident alien employees.
    > My thought is that the payroll company is not giving the right
    > information to H.R in my company and they just want me to follow those
    > directions and change my form W-4 and pay taxes as a non-resident, no
    > matter that I qualify AS A RESIDENT FOR TAX PURPOSES.
    > What should I do? contact the IRS?

    >From the information you give, you are a resident for tax purposes. The
company has screwed up; these new rules do not apply to you. I'd ignore
these instructions - it's up to you how you fill out your W-4, not the
company.

Tavo

Thank you so much to everybody for the advices.
I wish somebody with H1-B VISA could ask the HR in their companies to
have another opinion.

I'm waiting for my company to get an answer from the payroll company,
but I guess I will have to contact the IRS to be safe.

[email protected] wrote:
    > Calm down man. You're fine. It doesn't apply to you.
    > You're a resident alien under tax purposes.
    > tavo wrote:
    > > I'm still confused because H.R (my company) told me they received that
    > > notice from the payroll company who had been noticed from the IRS.
    > >
    > > Based on the IRS, I'm considered a RESIDENT for TAX purposes, because
    > > in the past 6 years I've been here almost 355 days per year. See below
    > > what the IRS rule says:
    > > "You will be considered a U.S. resident for tax purposes if you meet
    > > the substantial presence test for the calendar year. To meet this test,
    > > you must be physically present in the United States on at least:
    > > 31 days during the current year, and
    > > 183 days during the 3-year period that includes the current year and
    > > the 2 years immediately before that, counting:
    > > All the days you were present in the current year, and
    > > 1/3 of the days you were present in the first year before the current
    > > year, and
    > > 1/6 of the days you were present in the second year before the current
    > > year".
    > >
    > > H.R in my company just pointed my to read these articles from IRS,
    > > which mention the new regulations:
    > > http://www.irs.gov/pub/irs-pdf/p15.pdf
    > > Page 2: New procedure for withholding income taxes on the wages of
    > > nonresident alien employees.
    > > Page 14: New procedure for withholding income taxes on the wages of
    > > nonresident alien employees.
    > >
    > > My thought is that the payroll company is not giving the right
    > > information to H.R in my company and they just want me to follow those
    > > directions and change my form W-4 and pay taxes as a non-resident, no
    > > matter that I qualify AS A RESIDENT FOR TAX PURPOSES.
    > >
    > > What should I do? contact the IRS?
    > >
    > >
    > > AdobePinon wrote:
    > > > > Hello everybody,
    > > > >
    > > > > Have any of you received a letter from H.R in your companies, letting
    > > > > you know that the IRS has a new taxation rule for non-resident aliens?
    > > > >
    > > > > These are the CHANGES:
    > > > > 1. Don't claim an exemption from withholding.
    > > > > 2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    > > > > MARITAL STATUS (married or single) OR kids.
    > > > > 3. Claim only one (1) allowance.
    > > > > 4. Write "nonresident alien" above the dotted line on line 6 of form
    > > > > W-4.
    > > > > 5. Don't use the standard deduction in the taxes (that means use 0
    > > > > instead).
    > > > > 5. Changer your W-4 ASAP because this change will apply to wages paid
    > > > > on or after January 1, 2006.
    > > > >
    > > > > No the government is going to take a bigger chunk of our salary !!!
    > > > > how
    > > > > much? I don't know because H.R in my company doesn't know anything
    > > > > about it.
    > > > >
    > > > > If any of you guys is aware of this change, I'd appreciate any advice
    > > > > and how to fill up the form W-4 and also what's going to happen next
    > > > > year when I do my taxes: still have to file as SINGLE?
    > > > >
    > > > > what about if you have kids born in the States and also if your US
    > > > > residence is in process?
    > > > >
    > > > > PLEASE HELP!!!!
    > > > >
    > > > > THANKS.
    > > >
    > > > If you're H1B you'd ordinarilly be filing as resident for taxes (e.g.,
    > > > 1040 not 1040-NR) anyway.
    > > >
    > > > Disclaimer: Not tax advice.
    > > >
    > > > --
    > > > Posted via http://britishexpats.com

hcj1440

1) They sound like guidelines.
2) They sound like somewhat incorrect guidelines.
3) You should contact an accountant to figure out your estimated tax liability, and fill out your W-4 to have the correct amount of taxes withheld. If you withhold too little tax and owe more than $1000 at the time of filing, you will owe penalties and interest in addition to the tax. It's your responsibility to sort out how much to have withheld. It sounds like to me the guidelines they issued were intended to be helpful in this respect. For example for most married couples where both spouses work, having taxes withheld as "married" will mean you will owe too much money at the end of the year. That's why there's even a special box saying "married but withhold as single". Your payroll company may be trying to help the foreign workers who may be unfamiliar with the US tax system, but it seems they were not entirely correct on the non-resident bit.

J. J. Farrell

hcj1440 wrote:
    > > Hello everybody,
    > >
    > > Have any of you received a letter from H.R in your companies, letting
    > > you know that the IRS has a new taxation rule for non-resident aliens?
    > >
    > > These are the CHANGES:
    > > 1. Don't claim an exemption from withholding.
    > > 2. Request withholding as if you were SINGLE, REGARDLESS OF THE ACTUAL
    > > MARITAL STATUS (married or single) OR kids.
    > > 3. Claim only one (1) allowance.
    > > 4. Write "nonresident alien" above the dotted line on line 6 of form
    > > W-4.
    > > 5. Don't use the standard deduction in the taxes (that means use 0
    > > instead).
    > > 5. Changer your W-4 ASAP because this change will apply to wages paid
    > > on or after January 1, 2006.
    > >
    > > No the government is going to take a bigger chunk of our salary !!!
    > > how
    > > much? I don't know because H.R in my company doesn't know anything
    > > about it.
    > >
    > > If any of you guys is aware of this change, I'd appreciate any advice
    > > and how to fill up the form W-4 and also what's going to happen next
    > > year when I do my taxes: still have to file as SINGLE?
    > >
    > > what about if you have kids born in the States and also if your US
    > > residence is in process?
    > >
    > > PLEASE HELP!!!!
    > >
    > > THANKS.
    > 1) They sound like guidelines.
    > 2) They sound like somewhat incorrect guidelines.
    > 3) You should contact an accountant to figure out your estimated tax
    > liability, and fill out your W-4 to have the correct amount of taxes
    > withheld. If you withhold too little tax and owe more than $1000 at
    > the time of filing, you will owe penalties and interest in addition
    > to the tax. It's your responsibility to sort out how much to have
    > withheld. It sounds like to me the guidelines they issued were
    > intended to be helpful in this respect. For example for most married
    > couples where both spouses work, having taxes withheld as "married"
    > will mean you will owe too much money at the end of the year. That's
    > why there's even a special box saying "married but withhold as
    > single". Your payroll company may be trying to help the foreign
    > workers who may be unfamiliar with the US tax system, but it seems
    > they were not entirely correct on the non-resident bit.

No, what they've specified are the rules which the IRS have published
for people who are not resident in the USA for tax purposes. The
payroll company appear not to know the differences between 'resident
for tax purposes' and resident (permanently or otherwise) or
non-resident for immigration purposes. H-1Bs are almost always resident
for tax purposes (except possibly during their first and last years in
the USA).