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Taxation in US

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Old Nov 1st 2008 | 7:30 am
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Question Taxation in US

Hi,

Does anybody have an idea why all non immigrant workers and all temporary visa holders from their every pay check must pay the following money in US?Does the tax office, return the following money when a temporary worker permenantly leaves US?

1) Social Security
2) Medicare

I am still confused between the following because I think we all are living in state and therefore we have to pay state tax.Then why we have to pay federal tax and state tax seperately?

1) Federal Tax
2) State Tax

Thanks,

Last edited by Newbie_Aussie; Nov 1st 2008 at 7:34 am.
 
Old Nov 1st 2008 | 10:27 am
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Default Re: Taxation in US

federal is for everything, state just for your local state.

Depending on your visa, you don't have to pay all those taxes, but if you don't then head back to the UK, you'll have massive back taxes...also, dual tax treaty, you can use these US credits as if you were paying your NIC in the UK...
 
Old Nov 1st 2008 | 11:45 am
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Default Re: Taxation in US

Originally Posted by Bob
federal is for everything, state just for your local state.

Depending on your visa, you don't have to pay all those taxes, but if you don't then head back to the UK, you'll have massive back taxes...also, dual tax treaty, you can use these US credits as if you were paying your NIC in the UK...
I am on e-3 visa.
 
Old Nov 1st 2008 | 1:01 pm
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Default Re: Taxation in US

we are on L1a and my husband does not pay social securtiy or medicaid
(we pay UK NIC)

We pay Federal (whole of US), Ohio (State), City of employment and city of home address taxes - so at least 4 different income taxes becuase of the state we live in. We moved this year between 2 different rentals that happened to be in 2 different cities so will have to do an additional TWO tax returns on top of the normal 4 - so count yourslef lucky if you just have to pay 2 lots!
 
Old Nov 1st 2008 | 2:01 pm
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Default Re: Taxation in US

Originally Posted by MsElui
we are on L1a and my husband does not pay social securtiy or medicaid
(we pay UK NIC)

We pay Federal (whole of US), Ohio (State), City of employment and city of home address taxes - so at least 4 different income taxes becuase of the state we live in. We moved this year between 2 different rentals that happened to be in 2 different cities so will have to do an additional TWO tax returns on top of the normal 4 - so count yourslef lucky if you just have to pay 2 lots!
I recently moved from VA to California.

I suppose on e-3 visa we can pay Medicare in Australia.How does social security and Medicare compare to tax system in Australia.If we pay our taxes including Social Security and Medicare in US can we claim family tax benefit from Centrelink in Australia?
 
Old Nov 1st 2008 | 2:07 pm
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Default Re: Taxation in US

Originally Posted by Newbie_Aussie
I recently moved from VA to California.

I suppose on e-3 visa we can pay Medicare in Australia.How does social security and Medicare compare to tax system in Australia.If we pay our taxes including Social Security and Medicare in US can we claim family tax benefit from Centrelink in Australia?
http://www.socialsecurity.gov/intern...greements.html
http://www.centrelink.gov.au/interne...onal/index.htm
http://www.medicare.gov.au/public/mi...ling/index.jsp
 
Old Nov 2nd 2008 | 12:40 am
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Default Re: Taxation in US

Im on L2 and I only pay state and federal. So this counts towards my NIC if we go back?????
 
Old Nov 4th 2008 | 2:40 am
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Default Re: Taxation in US

Originally Posted by mellybrown
Im on L2 and I only pay state and federal. So this counts towards my NIC if we go back?????
I think you should be paying Social Security and Medicare also... My wife is L2 and pays these. I'm on L1 and NI am supposed to be paying NI instead (although I've actually not been paying for either up to now).
 
Old Nov 5th 2008 | 1:57 pm
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Default Re: Taxation in US

Originally Posted by mellybrown
Im on L2 and I only pay state and federal. So this counts towards my NIC if we go back?????
think my husband only can do this because HE is the L1 visa holder and is obviously still employed by a firm with links in the uk. If i got a job as an L2 I would expect to pay the US stuff all the way.
 
Old Nov 6th 2008 | 7:52 am
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Default Re: Taxation in US

Originally Posted by MsElui
think my husband only can do this because HE is the L1 visa holder and is obviously still employed by a firm with links in the uk. If i got a job as an L2 I would expect to pay the US stuff all the way.
My companies tax advisor did say that anything paid in the US can be credited back to the UK for things that require you to have paid NI for a duration. So if you have paid NI in the UK for 5 years and then SS/Medicare in the US for 5 years you can get the credit for it - so a total of 10 years NI. Don't know how you would go about doing this though...
 

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