"Stuart A. Bronstein" <spamtrap[at]sbcglobal.net> wrote:
- quote -

Forget that. I just went back and reread the OP's status.

Stu

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David Woods <davidwoods[at]verizon.net> wrote:
- quote -

But does the exemption apply for citizens working abroad?

Stu

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David Woods <davidwoods[at]verizon.net> wrote:
- quote -

OP is not a US citizen or resident (at the time of doing
that work). If he hadn't done any work in the US, the work
he did in Canada clearly wouldn't be taxable by the US.

Seth

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"jazu" <nofreakingspam[at]nospam.com> wrote:

- quote -

US taxation applies to worldwide income.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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- quote -

No, it's your income minus deductions. You don't enter
withholding until line 18. You subtract that from the total
tax to get the amount you owe or will receive as a refund.

- quote -

What more explanation do you need other than look it up in
the table? The instructions don't bother with lines whose
instructions on the form are simple.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

- quote -

No, it's not "income - withholds". It's "income -
exemptions" (actually, it's income - itemized deductions -
exemptions).

Exemptions (and itemized deductions) are completely
independent of withholdings. All withholdings are is an
estimated pre-payment of tax. The withholdings enter the
return on line 18, as part of computing the tax *payments*
you have made/are marking.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Another question.
If I was self-employed too, and on Canada soil I was doing
work for US company, do I have include this income as well?

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- quote -

Thanks guy for explanation. I was kind a lost because it is
so confusing. Line 14 Says.
14. Taxable income. Subtract line 13 form 12 (Taxable income is written
bold, and this is amount income-withholds)

Next line 15 says.
15. Tax. Find you tax in the tax table.

So you could assume that you take number from line 14, and
the funniest thing guide omits line 15 in explanation.

Thanks again

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

- quote -

Your W-2 might have several types of tax withholding,
Federal, State, Local, Social Security, Medicare.

I assume your calculation scenarios include the Federal Tax
Withholdings of 5000 & 12000 as an itemized deduction on
line 11, (do not do this), these figures belong only on line
18.

The entry for line 11 is for State & local income tax
withholdings only!

==============
- quote -

It's possible the current years tax due might be lower due
to an excessive amount of STATE & LOCAL tax withholdings,
excessive meaning that a portion of your -NONRESIDENT- state
& local income taxes Withheld are in excess of your actual
liability as computed on the state & local returns, if so
the following year you will report the refunds received on
line 4 (this in effect recovers the excess deduction of the
prior year).

Some folks will calculate the actual tax due and deduct only
that amount, in turn rendering the refund of excess W/H's
nontaxable in the following year.

Calculating using either method is acceptable, in some
states, like Rhode Island, it is easier to deduct the
Withholding amount, VS recalculating over & over again until
the optimal number is reached, RI and few other states use
what is called a PIGGY BACK calculation based on the Federal
Return.

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jazu <nofreakingspam[at]nospam.com> wrote:

- quote -

Your tax liability is based on your total taxable income,
not your income after taxes are withheld. What you owe or
get back on April 15 is simply the difference between your
tax liability and what you've already paid through
withholding and estimated tax payments.

So in both cases your taxes would be based on $60,000
income, not $55,000 or $48,000.

The only way that a change in withholding affects your taxes
is if you owe enough to incur a penalty for
underwithholding.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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jazu <nofreakingspam[at]nospam.com> wrote:

- quote -

No, you pay tax on the full $60,000.

Seth

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I'm Canadian and I'm preparing income tax on 1040NR-EZ form.

1. Let's say you made 60.000/year and say employer withheld
from you 5.000 for taxes.

According to tax table you pay tax from $55.000 so it makes
$10.421, so you have send check to IRS for $4.579.

But you end up paying $10.421.

2. Say employer withheld you $12.000 so you pay from $48.000
and it makes $8671.

In this case IRS should send you check for return 3329.

So in exp1 I end up paying - $10.421

In exp 2 ------------------------$8671.

Does it mean if employer withhold more from you pay les
taxes on the end or I'm doing something wrong wit my calcs?

I appreciate any explanation.

Thanks

jazu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >