2012 Tax (why is the US system so complicated?)

[Cliron]

I hate to post a new thread about it but its the best place I can get answers short of ringing up the IRS (which I dread and doubt I'd ever get through). I also suspect people will hijack this closer to the closing date for submissions.

Basically, I'm an Irish citizen who moved to the US for a year.

I found a job as a psychology research assistant for a start up medical device company.

The job is technically freelance, although I work there 35 hours a week most weeks. I earn 16$ an hour, and since working there (October 26th) I've earned 3000 bucks.

I get my gross pay, and well, thats it. I haven't known what I've meant to been doing with it and have just stored away 15% of every pay check in a savings account for tax.

Any research I've done on the internet (especially the IRS website) has been either super confusing, vague or just plain contradictory. I tried using TurboTax, but because I wasn't in the country for full year,plus I'm a foreign citizen,it just got super complicated.

Oh! and as per my visa I don't have to pay social security or medicare. I only have to pay federal and state tax (which I assume I can do both at the same time?)

In Ireland, chances are I wouldn't have to pay any tax on that amount of income because it not being above my tax credits (each person gets X figure of their income that can't be taxed).

Any help would be appreciated. Would rather not have to go to an accountant because chances are the fees would be more than my tax contribution. Also would rather not have the IRS deport me.

P.s I pity ye for having to do this every year, especially if you happen to be more complicated than me (e.g. have children, own home, investments etc).

[Edgie]

If all you earned during the year was 3k, you dont even have to file taxes. Everyone who works is entitled to deductions and exemptions. I havent checked this years numbers but last year with having the single deduction and 1 exemption, for yourself, you could earn roughly 9500 and not have to pay any taxes. Each dependant is 1 exemption so having kids or a wife would add like 3600 to the amount that ISNT taxable.

So basically unless you got taxes taken out of your paycheck, and want them back, you dont have to file.

[Osede]

First thing is, you get your pay from your school? If so then there should be no worry about as usually they will reduct any tax first, if it s taxable. Unless you can it by cash or whatever...

Or else, you can check with the financial office, the should have a long list of table for the tax exemption range for each country.

[Dolmen]

Are you receiving a 1099 from the company you're "freelancing" for?

Also, does your employment fall under these categories (as outlined by the IRS):

Exempt Employment includes:
On-campus student employment up to 20 hours a week (40 hrs during summer vacations).
Off-campus student employment allowed by USCIS.
Practical Training student employment on or off campus.
Employment as professor, teacher or researcher.
Employment as a physician, au pair, or summer camp worker.

http://www.irs.gov/Individuals/Inter...Medicare-Taxes

[Outlaw]

Dude just take the money and run! Seriously though.. did you mean you moved to the US for a year last year? (2011-2012) Or you have worked there, and are still working there, sinse september last year? I got confused. I would ask someone at the company. They should have an accountant.

[Nesssie]

You will most likely receive a 1099-MISC from your job but your income is low enough that I don't think you need to file. The amount of gross income required for single taxpayers is at least 9500.

Per IRS: Who Must File

If you are any of the following, you must file a return:

A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year. You must file even if:
Your income did not come from a trade or business conducted in the United States,
You have no income from U.S. sources, or
Your income is exempt from income tax.

However, if your only U.S. source income is wages in an amount less than the personal exemption amount (see Publication 501), you are not required to file.

See Table 1 of PUB 501: http://www.irs.gov/publications/p501...link1000259853

[archibaldcrane]

BOOM

accountant'd