Transition from H1B Tax Exemption to Green Card

[alexis2 0]

I am a UK citizen who is employed at a US university. I was previously on an H1B visa (a few weeks ago). While on the H1B visa, both payroll and the University's International Office determined that I was eligible to claim a tax treaty exemption. I was exempt from Federal and State taxes from November 2007 up until a few weeks ago. This is because I recently got my Green Card (through marriage to a US citizen). I fully understand that the tax treaty exemption no longer applies to me and that I need to pay taxes. My question is do I have to start paying full taxes right away or can I wait until the beginning of the new tax year (next year)? In other words, will the taxes have to be deducted from my next pay check? I cannot afford this at the moment and if it is acceptable to pay the tax as a lump sum at the end of the tax year, I would prefer this option. Please advise. Thanks in advance.

[payxibka 10,047]

I am a UK citizen who is employed at a US university. I was previously on an H1B visa (a few weeks ago). While on the H1B visa, both payroll and the University's International Office determined that I was eligible to claim a tax treaty exemption. I was exempt from Federal and State taxes from November 2007 up until a few weeks ago. This is because I recently got my Green Card (through marriage to a US citizen). I fully understand that the tax treaty exemption no longer applies to me and that I need to pay taxes. My question is do I have to start paying full taxes right away or can I wait until the beginning of the new tax year (next year)? In other words, will the taxes have to be deducted from my next pay check? I cannot afford this at the moment and if it is acceptable to pay the tax as a lump sum at the end of the tax year, I would prefer this option. Please advise. Thanks in advance.

Nobody actually pays income taxes until they file the annual return... all amounts withheld are put on "deposit" until you file... however, if you underpay your tax liability you could be subject to penalties....

Social security taxes on the other hand are not negotiable and must be paid concurrently....

[alexis2 0]

I am a UK citizen who is employed at a US university. I was previously on an H1B visa (a few weeks ago). While on the H1B visa, both payroll and the University's International Office determined that I was eligible to claim a tax treaty exemption. I was exempt from Federal and State taxes from November 2007 up until a few weeks ago. This is because I recently got my Green Card (through marriage to a US citizen). I fully understand that the tax treaty exemption no longer applies to me and that I need to pay taxes. My question is do I have to start paying full taxes right away or can I wait until the beginning of the new tax year (next year)? In other words, will the taxes have to be deducted from my next pay check? I cannot afford this at the moment and if it is acceptable to pay the tax as a lump sum at the end of the tax year, I would prefer this option. Please advise. Thanks in advance.

Nobody actually pays income taxes until they file the annual return... all amounts withheld are put on "deposit" until you file... however, if you underpay your tax liability you could be subject to penalties....

Social security taxes on the other hand are not negotiable and must be paid concurrently....

Thanks. I guess my question is can I legally start paying the taxes in full at the end of the tax year...is "being subject to penalities" within the law?

[vicmo 1]

I am a UK citizen who is employed at a US university. I was previously on an H1B visa (a few weeks ago). While on the H1B visa, both payroll and the University's International Office determined that I was eligible to claim a tax treaty exemption. I was exempt from Federal and State taxes from November 2007 up until a few weeks ago. This is because I recently got my Green Card (through marriage to a US citizen). I fully understand that the tax treaty exemption no longer applies to me and that I need to pay taxes. My question is do I have to start paying full taxes right away or can I wait until the beginning of the new tax year (next year)? In other words, will the taxes have to be deducted from my next pay check? I cannot afford this at the moment and if it is acceptable to pay the tax as a lump sum at the end of the tax year, I would prefer this option. Please advise. Thanks in advance.

Nobody actually pays income taxes until they file the annual return... all amounts withheld are put on "deposit" until you file... however, if you underpay your tax liability you could be subject to penalties....

Social security taxes on the other hand are not negotiable and must be paid concurrently....

Thanks. I guess my question is can I legally start paying the taxes in full at the end of the tax year...is "being subject to penalities" within the law?

[vicmo 1]

I am a UK citizen who is employed at a US university. I was previously on an H1B visa (a few weeks ago). While on the H1B visa, both payroll and the University's International Office determined that I was eligible to claim a tax treaty exemption. I was exempt from Federal and State taxes from November 2007 up until a few weeks ago. This is because I recently got my Green Card (through marriage to a US citizen). I fully understand that the tax treaty exemption no longer applies to me and that I need to pay taxes. My question is do I have to start paying full taxes right away or can I wait until the beginning of the new tax year (next year)? In other words, will the taxes have to be deducted from my next pay check? I cannot afford this at the moment and if it is acceptable to pay the tax as a lump sum at the end of the tax year, I would prefer this option. Please advise. Thanks in advance.

Nobody actually pays income taxes until they file the annual return... all amounts withheld are put on "deposit" until you file... however, if you underpay your tax liability you could be subject to penalties....

Social security taxes on the other hand are not negotiable and must be paid concurrently....

Thanks. I guess my question is can I legally start paying the taxes in full at the end of the tax year...is "being subject to penalities" within the law?

U.S TAx system is pay as you go

Go to your payroll department, explain the situation and perhaps fill up a new w-4. If not enough money is withold from your paycheck there are hefty penalites... Google for 'penalty underwithholding'

[DI&JR 1]

I am a UK citizen who is employed at a US university. I was previously on an H1B visa (a few weeks ago). While on the H1B visa, both payroll and the University's International Office determined that I was eligible to claim a tax treaty exemption. I was exempt from Federal and State taxes from November 2007 up until a few weeks ago. This is because I recently got my Green Card (through marriage to a US citizen). I fully understand that the tax treaty exemption no longer applies to me and that I need to pay taxes. My question is do I have to start paying full taxes right away or can I wait until the beginning of the new tax year (next year)? In other words, will the taxes have to be deducted from my next pay check? I cannot afford this at the moment and if it is acceptable to pay the tax as a lump sum at the end of the tax year, I would prefer this option. Please advise. Thanks in advance.

Nobody actually pays income taxes until they file the annual return... all amounts withheld are put on "deposit" until you file... however, if you underpay your tax liability you could be subject to penalties....

Social security taxes on the other hand are not negotiable and must be paid concurrently....

Thanks. I guess my question is can I legally start paying the taxes in full at the end of the tax year...is "being subject to penalities" within the law?

U.S TAx system is pay as you go

Go to your payroll department, explain the situation and perhaps fill up a new w-4. If not enough money is withold from your paycheck there are hefty penalites... Google for 'penalty underwithholding'

Yes, your FIT will be deducted from your pay. You would need to submit a new W-4 to your payroll department. Here is a tip:

• ● when you

increase your number of allowances (line 5), the amount of FIT withheld is reduced - your net pay is higher, but you may end up owing taxes

● when you decrease the number of allowances, the amount of FIT withheld is increased - your net pay is lower, but you may get a tax refund

Here is a link to the IRS Withholding Calculator, you can try different scenarios and then revise your W-4.