| [ USA ] in KIDS 글 쓴 이(By): guest (Tax) <n3.neolinear.com> 날 짜 (Date): 2001년 3월 17일 토요일 오전 01시 17분 48초 제 목(Title): Re: [질문] Tax Form: 1040A/1040NR? I did my tax return with a professional tax preparer from H&R block and I did some reseach on non-resident taxes. I learned a lot from the discussion with the preparer and from reading IRS publications and US-Korean tax treaties. Here are some facts that I found out. 1.whether or not you have to file 1040NR If you don't have a green card, do "substantial presence test" (see Pub519 page 4) If you meet the substantial presence test, you are considered to be a "resident alien" and you file 1040 like US citizens. If you don't meet, you are a nonresident alien and youfile 1040NR. 2.About SS tax and medicare tax. If you are a nonresident alien with F or J visa, you don't have to pay these taxes. (see Pub519 pg 39) If already withheld, you can ask for a refund from your employer (see Pub519 pg 40) (I was refunded thousands of dollars from my employer since I worked under F-1 visa (optional practical training)) 3.Tax rate Federal tax rate for nonresidents is much higher than residents. However, if you are a resident alien, you have to pay SS & medicare tax. According to my preparer, in some cases you may choose whether you file 1040 or 1040NR. (I'm not sure she is right about this) The benefit of choosing 1040 is as I said federal tax rate is lower but you pay ss & medicare tax. The benefit of choosing 1040NR is you don't pay ss & medicare tax and you may be able to deduct some of your income by the US-Korea tax treaty. (for the treaty see pub509(?) ) Hope this helps. |