Got my First W2
Jan 11th 2012, 5:27 am
#1
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Location: Boston
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Got my First W2
But what next?
Im in the US on H1b and have been here almost a year. My W2 arrived today and people are talking about filing taxes and getting refunds.
I have heard conflicting information about my status and ability to claim refunds. The worst case scenario being that i have not paid enough, to not entitled to a refund as im neither a USC or LPR
I called HR Block who want to charge me upto $250 but think that i may owe money. I dont have $250 to spend just to be told that i have to pay even more monies. Someone told me that i need to fill out more forms because im not in the usual status for filing taxes. Apparently i have to file a 1040NR or something like that.
Are there any H1b peoples that have experience of filing w2 for tax purposes that can advice me what steps im needing to take?
Any help much appreciated. Im all confused.
Im in the US on H1b and have been here almost a year. My W2 arrived today and people are talking about filing taxes and getting refunds.
I have heard conflicting information about my status and ability to claim refunds. The worst case scenario being that i have not paid enough, to not entitled to a refund as im neither a USC or LPR
I called HR Block who want to charge me upto $250 but think that i may owe money. I dont have $250 to spend just to be told that i have to pay even more monies. Someone told me that i need to fill out more forms because im not in the usual status for filing taxes. Apparently i have to file a 1040NR or something like that.
Are there any H1b peoples that have experience of filing w2 for tax purposes that can advice me what steps im needing to take?
Any help much appreciated. Im all confused.
Jan 11th 2012, 5:53 am
#2
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Re: Got my First W2
My OH is on a H1B. We use Turbo Tax to do our return. First year we had to print it and mail it as our kids needed ITINs. Last year we did it online and we will do it online again this year. We have had a refund both years so far. Not as much last year as the 1st year but that was expected. May be a bit different this year as OH started a new job on Jan 2. All we needed to do was enter all the info from the W2 onto the form online and it worked it all out for us. Not very difficult but then that is just our circumstances. I think we used Deluxe TurboTax to file online we paid about $50 for doing both State and Federal
When we get our GC and sell our UK property we will probably use an accountant due to the money we will have from the equity in the house sale that we will bring over to the US to fund the purchase of a house here.
When we get our GC and sell our UK property we will probably use an accountant due to the money we will have from the equity in the house sale that we will bring over to the US to fund the purchase of a house here.
Jan 11th 2012, 6:04 am
#3
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Joined: Jun 2008
Location: Malibu, CA
Posts: 921
Re: Got my First W2
Bit more information required.
You need to see where you fit on the substantial presence test.
Are you single? Do you have a family? Do you own a house?
If you are not claiming any deductions, form 1040NR-EZ is the way to go. It's relatively straightforward and easily doable yourself.
You may also have state taxes to do, depending on which state you live in.
It's difficult to determine whether you will owe money or will get a refund until you fill out the form.
Personally I tend to avoid HR Block and the like as you are paying money for a non-expert. They aren't necessarily trained in how to cope with immigrants who may have unusual or complex tax situations.
You need to see where you fit on the substantial presence test.
Are you single? Do you have a family? Do you own a house?
If you are not claiming any deductions, form 1040NR-EZ is the way to go. It's relatively straightforward and easily doable yourself.
You may also have state taxes to do, depending on which state you live in.
It's difficult to determine whether you will owe money or will get a refund until you fill out the form.
Personally I tend to avoid HR Block and the like as you are paying money for a non-expert. They aren't necessarily trained in how to cope with immigrants who may have unusual or complex tax situations.
Last edited by caleyjag; Jan 11th 2012 at 6:35 am.
Jan 11th 2012, 6:17 am
#4
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Re: Got my First W2
You will need to file either a 1040 or 1040 NR return. Normally you can opt for the 1040 instead of the 1040NR if taxes will be less. You will likely also have to file a state income tax return. If you filled out your W4 correctly, it is likely that you will not owe any significant amount of additional taxes and may even possibly get a large refund.
The primary difference between the 1040 and the 1040NR is that the 1040 allows for more deductions and tax credits but you have to report worldwide income but usually you can deduct foreign income taxes paid on that income. The 1040NR only includes income made in the US but has less tax credits and deductions.
Sometimes filing 1040NR is advantagous since taxes withheld for the W4 is based on annual income and you may have only partial year income therefore significantly reducing your tax burden (lower marginal tax brackets and the standard deduction is for your annual income).
The primary difference between the 1040 and the 1040NR is that the 1040 allows for more deductions and tax credits but you have to report worldwide income but usually you can deduct foreign income taxes paid on that income. The 1040NR only includes income made in the US but has less tax credits and deductions.
Sometimes filing 1040NR is advantagous since taxes withheld for the W4 is based on annual income and you may have only partial year income therefore significantly reducing your tax burden (lower marginal tax brackets and the standard deduction is for your annual income).
Last edited by Michael; Jan 11th 2012 at 6:21 am.
Jan 11th 2012, 6:28 am
#5
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Joined: Aug 2004
Location: MA, USA
Posts: 92,174
Re: Got my First W2
You didn't get the employers to pony up the first years tax prep for you then?
Oh well.
With the W2's in hand, you can file yourself, though online is quicker, but worth getting the paper forms to look over, get those in the town libraries and in MA, some town halls but not all will have them. There should be a Federal and a State one.
You might as well wait till you get a statement from the medical insurance company though, which basically states that you have cover and from such and such a date, that's just for the MA state taxes so you don't get fined.
LPR's are allowed refunds....but you might not have paid enough taxes to have over paid your threshold, all depends how much you've paid, what your deductibles are and how long you've paid.
Definitely don't ask HR Block.
Oh well.
With the W2's in hand, you can file yourself, though online is quicker, but worth getting the paper forms to look over, get those in the town libraries and in MA, some town halls but not all will have them. There should be a Federal and a State one.
You might as well wait till you get a statement from the medical insurance company though, which basically states that you have cover and from such and such a date, that's just for the MA state taxes so you don't get fined.
LPR's are allowed refunds....but you might not have paid enough taxes to have over paid your threshold, all depends how much you've paid, what your deductibles are and how long you've paid.
Definitely don't ask HR Block.
