taxes

[argo]

Hi,

I'm actually a foreign student in US and I want to know how much taxes do I have to pay on the money I made with savings/mutual accounts?

Thanks.

[PRICEPLUS]

I can't say for certain but I'd bet the next payheck you'll be paying the same as the rest of us!

Sweepsplayer, we need a definitive answer here!

[boefixepa]

I can't be too much help, but I can guess.

If you have to file an income tax return in the US (I am guessing you do) the interest earned on those accounts will be added to your gross income. Your entire income will be taxed at the same rate.

So if your income is 30K and you make 1K in interest your new gross income is 31K - take deuctions and that get your net income and you are taxed in that category.

Depending on your total income and the amount of interest it could make little difference or it may pump you up to the next level.

There is not a simple answer to this question...sorry.

[PRICEPLUS]

A trip to the internet site of the Internal Revenue Service sounds in order.

[Mathew Green]

Originally Posted by PRICEPLUS

A trip to the internet site of the Internal Revenue Service sounds in order.

Yes, it is.

But the short answer to your question is: In January of next year you will probably receive a form 1099 from each account telling you how much interest, dividends, and capital gains you made this year. When you file your income tax form, there is a line or a subform for listing that form-1099 income. Even if you don't get a form 1099, you still have to pay the tax, but if you earn less than a certain amount of interest, you don't have to pay tax on it. There are other rules too, but they are all spelled out in the 1040 Tax Form instruction book (available in PDF format on the IRS website.)

Since the tax laws change sometimes, whatever information you get now is liable to be out of date by the time you need to file your taxes. So, I wouldn't worry about this till the end of the year unless you're earning enough interest and dividends to require you making quarterly payments to keep the tax due from being so big at the end of the year.

[MonkeyMama]

Way over my head.

What I do know is generally countries have treaties with other countries about what is taxed between countries, etc. Tax treaties. You may want you can find on your treaty (search online?). Also if you do end up having to pay foreign taxes, maybe your country allows a tax credit for these amounts?

Technically in the US you do not have to file a return unless your income is a certain level. BUT when it comes to foreign transactions, who knows... It may just be too paltry to bother with.

I had a Canadian friend living in the states last year and I talked to my boss about doing her taxes. HE ran down the list of all the issues and basically said I Was going to become a foreign tax expert or she would have to find one - LOL. IT gets so sticky. I just couldn't help her. & I am not much help here.

[sweeps]

This page would be a good start: Link

[neatdesign]

I work in the international education office of a university. Your university should have someone in Accounts Payable who handles international taxation. They already have resources available to give to you about taxes, social security, international tax treaties, etc. This is where we direct our F1 and J1 students who have any US taxation questions. If you are unsure who to see about international taxation at your university, as the international education office.

~ Jenney

[argo]

People,

Thanks for ideas.

Now, is there a difference in taxation objects whether I withdraw interests (or money) or not?