Anyone know if I need to pay tax on the CPT?

[rangers_texas 2]

I'm only working around 20 hours per week, do I still need to pay income taxes etc???

[taal 28]

I'm only working around 20 hours per week, do I still need to pay income taxes etc???

If you work you have to pay taxes..

Edited September 27, 2012 by taal

[Dave + Loni 10]

If your working for a company they should be withholding the required amount, if self employed consult a CPA to have them detirmine the amout and frequency of payments.

[rangers_texas 2]

If you work you have to pay taxes..

Don't I need to be working so many hours before I get taxed?

If your working for a company they should be withholding the required amount, if self employed consult a CPA to have them detirmine the amout and frequency of payments.

There's nothing on my paycheck for taxes though?

[vroni 1]

you have to pay taxes. the company that you work for should withheld an approximation of the required taxes, if they withhold to much or to little you will either have to pay the difference or get a refund next year when you do your tax return. if you work very little the deductible might be higher than what you earned. then you would get back all of the taxes that you have paided.

Edited September 27, 2012 by vroni

[rangers_texas 2]

you have to pay taxes. the company that you work for should withheld an approximation of the required taxes, if they withhold to much or to little you will either have to pay the difference or get a refund next year when you do your tax return. if you work very little the deductible might be higher than what you earned. then you would get back all of the taxes that you have paided.

But this CPT only lasts til December?

[rangers_texas 2]

How should I fill in the W-4?

[aaron2020 11,651]

Don't I need to be working so many hours before I get taxed?

There's nothing on my paycheck for taxes though?

Everyone who earns money from a job pays taxes. From the first dollar, you pay payroll taxes like Social Security and Medicare. You may or may not owe income taxes.

Imagine a person who works 1 hour and makes $1,000,000 vs. a person who works all year for $50,000. Why would the $1,000,000 be tax free when he worked one hour and the $50,000 is taxed because he worked all year? Doesn't make sense.

It's not the hours worked. It is the money earned that is taxed. You pay payroll taxes with the first penny. You may or may not owe income taxes depending on the amount of money you earn. Hours worked does not matter when it comes to taxes from wages. It is how much money is earned that determines a tax liability.

If no taxes (including payroll taxes) are withheld, then your employer might be treating you as an independent contractor. This means you will owe 15% in payroll taxes and income taxes when you file your tax return.

The US tax system is a self-reporting. This means the government does not tell you what you owe. It is your responsibility to figure out your income and the taxes you owe. It is also your responsibility to report it accurately. If you don't and the IRS audits you, then you have a big problem.

[aaron2020 11,651]

But this CPT only lasts til December?

Even though the job will end in December, you are still responsible for filing a US tax return. You can file from your home country. You can download the forms from the IRS website. You can mail it to the IRS from your home country. There is no problem with filing a US tax return from your home country.

Failing to report and pay your US taxes may be a reason to refuse any immigration or tourist applications for you in the future.

[rangers_texas 2]

Everyone who earns money from a job pays taxes. From the first dollar, you pay payroll taxes like Social Security and Medicare. You may or may not owe income taxes.

Imagine a person who works 1 hour and makes $1,000,000 vs. a person who works all year for $50,000. Why would the $1,000,000 be tax free when he worked one hour and the $50,000 is taxed because he worked all year? Doesn't make sense.

It's not the hours worked. It is the money earned that is taxed. You pay payroll taxes with the first penny. You may or may not owe income taxes depending on the amount of money you earn. Hours worked does not matter when it comes to taxes from wages. It is how much money is earned that determines a tax liability.

If no taxes (including payroll taxes) are withheld, then your employer might be treating you as an independent contractor. This means you will owe 15% in payroll taxes and income taxes when you file your tax return.

The US tax system is a self-reporting. This means the government does not tell you what you owe. It is your responsibility to figure out your income and the taxes you owe. It is also your responsibility to report it accurately. If you don't and the IRS audits you, then you have a big problem.

Thanks for the info. Although while on CPT I have read I do not need to pay medicare or social security since I am a non resident alien as I have been here for less than 5 years, is this correct? I read that on the ICE website. With regards to taxes, I will make sure I get that changed. So my question should be how much money do I need to earn to pay taxes? If im understanding you correctly I need to pay taxes regardless of how much I make, but I can file for a tax refund at the end of the tax year?

[vroni 1]

Thanks for the info. Although while on CPT I have read I do not need to pay medicare or social security since I am a non resident alien as I have been here for less than 5 years, is this correct? I read that on the ICE website. With regards to taxes, I will make sure I get that changed. So my question should be how much money do I need to earn to pay taxes? If im understanding you correctly I need to pay taxes regardless of how much I make, but I can file for a tax refund at the end of the tax year?

When you live in the US you have to file a tax return every year regardless if you have any income. so you just do the tax return as you should have done in the last years and report your income. you should get a form from every employer noting the salary and the amount of state and federal tax. so next April just file your federal and state tax returns.

[rangers_texas 2]

When you live in the US you have to file a tax return every year regardless if you have any income. so you just do the tax return as you should have done in the last years and report your income. you should get a form from every employer noting the salary and the amount of state and federal tax. so next April just file your federal and state tax returns.

But what should I do for now? Should I pay income taxes or not? Like I said i will not be making that much, but i do not know if its enough to pay income taxes?

[vroni 1]

the company that you work for should withheld your taxes. it does not matter if they don't any difference between payed taxes and taxes that you owe will be compensated when you file your taxes. just make sure you get a W-2 or a similar form. you did get authorization from USICS for the job, right?

[rangers_texas 2]

the company that you work for should withheld your taxes. it does not matter if they don't any difference between payed taxes and taxes that you owe will be compensated when you file your taxes. just make sure you get a W-2 or a similar form. you did get authorization from USICS for the job, right?

Yeah I got a new I20 that said CPT employment on the back page.

[rangers_texas 2]

I spoke to the tax preparer at work and she said if I am earning less than $9500 from Jan to Dec then I do not need to withhold taxes.