Tax allowance - Part Year
 

Hey All,

I am looking for some advice around tax withholding in the US. I am based in California and arrived at the start of October. I have begun earning and was wondering the head of household tax allowance of $13,600 at 10% tax is this prorated to the beginning of my work Visa? I am trying to work out can I earn up to $13k at 10% before December?

Thanks for your help as always,

Tom

Re: Tax allowance - Part Year
 

I can't answer your question but since nobody has replied I thought I'd at least give some pointers.

I think your question assumes you're going to file as a resident alien. Assuming you haven't lived in the US before your entry in October, you'll likely not meet the Substantial Presence Test and therefore file as a non-resident alien (i.e. form 1040NR), declaring only your US source income. In this case, you won't get the standard deduction and only one exemption (see https://www.irs.gov/individuals/inte...uring-your-tax). I can't answer your specific question but it seems 1040NR is not prorata.

This is on a federal level (IRS). California is different. For California, you're a part-year resident in 2018 (form 540NR) and there things are pro-rata (look at schedule CA).

Please post what you find so we can learn from your insights.

Since you did a company transfer, I'd hope your company is paying for some tax help.

Re: Tax allowance - Part Year
 

Re: Tax allowance - Part Year