Us Tax System

[Пушкарева]

The thread is supposed to help those confused about the tax procedure. Peers who are more knowledgeable about the US taxes, please respond to our questions.

Thank you.

[Пушкарева]

A US employer sent me a W-9 form to fulfill. The instructions provided if I am a non-resident allien, I have to fill in the W-8 form (there are different types of it).

Skimming through various W-8s, I eventually printed out the W-8BEN one. Is that correct? Also, the latter requires paying 30% income tax, with a possibility of some reduction due to the bi-lateral treaty.

2 questions:

- Did I print out the correct form?
- If I was sent the W-9 (if I am not mistaken, the tax rate is lower with this one), should I fill that in, or go for the W-8 BEN?

[Пушкарева]

Pipl, please help. Its urgent. Which form should I submit? I cant figure it out.. :bawling:

[melo]

I am thinking you are just filling out the W-9 to give them your taxpayer ID. This has nothing to do with a tax rate. You will complete a tax form again in Feburary or March of next year and your tax rate will depend on your earnings. I am guessing you are considered a resident alien and the first line of W-8BEN says it is not for any US persons.

So the answer is fill out the W-9 and you are finished. Also your organization should know what they are doing better than us. This is actually more their problem than yours.

[Пушкарева]

I am a non resident allien since I am less than 5 years in the US. I am mailing the both forms and let them care which one to keep.


I am thinking you are just filling out the W-9 to give them your taxpayer ID. This has nothing to do with a tax rate. You will complete a tax form again in Feburary or March of next year and your tax rate will depend on your earnings. I am guessing you are considered a resident alien and the first line of W-8BEN says it is not for any US persons.

So the answer is fill out the W-9 and you are finished. Also your organization should know what they are doing better than us. This is actually more their problem than yours.

[melo]

This is the only tax treaty I could find that I think relates. Not sure exactly how it applies to your specific case. I am guessing it helps you in no way. :D http://www.irs.gov/pub/irs-trty/ussr.pdf

[Googler]

http://www.irs.gov/businesses/small/international/article/0,,id=96477,00.html

http://www.irs.gov/businesses/small/international/article/0,,id=129232,00.html

You are not subject to filing neither W-9 nor W-8.

[melo]

I am a non resident allien since I am less than 5 years in the US. I am mailing the both forms and let them care which one to keep.

I can't see any reason why you would need the W-8.

[Пушкарева]

Nuuuuu, Google, a vot ti perviy raz i oseksya, uvajaemiy. I must file either or them.


http://www.irs.gov/businesses/small/international/article/0,,id=96477,00.html

http://www.irs.gov/businesses/small/international/article/0,,id=129232,00.html

You are not subject to file neither W-9 nor W-8.

[Пушкарева]

On the W-9 is says clear cut "You should not file the form if you are non-US citizen, blah-blah, refer to W-8". But it does not say which W-8


I can't see any reason why you would need the W-8.

[melo]

http://www.irs.gov/businesses/small/international/article/0,,id=96477,00.html

http://www.irs.gov/businesses/small/international/article/0,,id=129232,00.html

You are not subject to filing neither W-9 nor W-8.

The employer could be using the W-9 to confirm the TIN.

[Пушкарева]

Oh well, as I said, I am mailing the both. Let her deal with that issue. I have no nerves.

The employer could be using the W-9 to confirm the TIN.

[melo]

On the W-9 is says clear cut "You should not file the form if you are non-US citizen, blah-blah, refer to W-8". But it does not say which W-8


Nooooooo, you don't qualify for any of the exemptions or anything since you are reciving normal income. The best I can tell is you need to fill out the W-9 as an official record of your TIN. We do this at our work also for foreign citizens. It does not say non-US citizens, it says foreign persons. The W-8 is for people living in other countries making income in the US. Therefore they are foreign persons. You are a non-resident alien which is considered a US person and therefore you should fill out the W-9. You work and live in the US, therefore you are not a foreign person. You live and work in the US so you are a US person by definition.

[Googler]

Nuuuuu, Google, a vot ti perviy raz i oseksya, uvajaemiy. I must file either or them.

Зависит от того, в какой компании работаете (интернэшнэл etc) и по какой визе находитесь.

[Пушкарева]

Ok, guys thank you very much.

[Googler]

I must file either or them.

Do you have a SSN?

[Пушкарева]

Da.
___________


Do you have a SSN?

[benq35]

I am a non resident allien since I am less than 5 years in the US. I am mailing the both forms and let them care which one to keep.

Я сам не заполняю а пользуюсь услугами консультанта за 75 долларов они сами все делают. Мне так больше нравиться.

[rosefire]

The best and worst states for taxes (for those who are interested)
http://articles.moneycentral.msn.com/Taxes/Advice/TheBestAndWorstStatesForTaxes.aspx?page=2
scroll down to the table "taxes by state", u can see ur state's rank :)

the most expensive gasoline tax is in NY -41.7 (was interesting to know)

ps: is there any thread, u can post all kinds of informational staff. I don't wonna annoy everybody by posting this kind of staff on various threads, but sounded so good, just wanted to share

if u know that kind of thread, plz, let me know, I will move this post there

thanks:)

[rosefire]

Senate Passes Stimulus Plan


The Senate plan would rush rebates -- $600 for individuals, $1,200 for couples -- to most taxpayers and cut business taxes in hopes of reviving the economy. Individuals making up to $75,000 a year and couples earning up to $150,000 would get rebates. People who paid no income taxes but earned at least $3,000 -- including through Social Security or veterans' disability benefits -- would get a $300 rebate.
http://biz.yahoo.com/ap/080207/economy_stimulus.html

[Sankoz]

Зависит от того, в какой компании работаете (интернэшнэл etc) и по какой визе находитесь.
Naskolko ya znayu eto ne zavisit ot kompanii a ot immigratsionnogo statusa. Daje yesli kompania international rabotodatel v US and this is for US purposes.

[SmIlIk]

Naskolko ya znayu eto ne zavisit ot kompanii a ot immigratsionnogo statusa. Daje yesli kompania international rabotodatel v US and this is for US purposes.

V zavisimosti ot tipa kompanii, menyayutsya tip vizi. Ot tipa vizi zavisit budet li tot ili inoy chelovek platit' Taxes.

[Sankoz]

I think we are talking about the same thing. Only the type of a company doesn't necessarily determine the type of visa. For example J-1 can be funded both by large companies as well as international companies.

[rosefire]

[B][I][B][I]Economic Stimulus Package Heads to President's Desk
Issue: Tax

Date: February 7, 2008

Tonight both the House & Senate overwhelming approved HR 5140 (http://capwiz.com/naifa/issues/bills/?bill=10910071), the highly anticipated economic stimulus bill that will provide tax rebates to millions of Americans. The final bill is now on its ways to the President who has said he will sign it.

Action Taken: The Senate approved an amended version of the previously House passed economic stimulus package, HR 5140 (http://capwiz.com/naifa/issues/bills/?bill=10910071). The Senate’s changes include:

<LI class=MsoNormal style="mso-list: l1 level1 lfo4">Social Security income counts for purposes of qualifying for the rebates <LI class=MsoNormal style="mso-list: l1 level1 lfo4">Disability payments to disabled vets count for qualifying for the rebates
Language was added to make sure illegal aliens cannot qualify for the rebates Shortly after Senate passage, the House overwhelmingly agreed to the Senate’s changes and sent the $168 billion package to the President’s desk for his final signature.

Background: On January 24, a small bipartisan group of negotiators from the Administration and the House of Representatives hammered out an economic stimulus package that would result in a $600 per person income tax rebate for qualifying taxpayers. The rebates would be increased by $300 per child for each qualifying taxpayer's children. The rebates would be income limited — they would go only to those whose taxable incomes were $75,000/single or $150,000/married or less. (A reduced amount would go to those who earn between $75,000 ($150,000 for married couples) and $87,000 ($174,000 for married couples). Plus, rebate checks of $300 would go to people who earn at least $3,000 in taxable income, but less than $4,000.

The House overwhelmingly passed the economic stimulus package on January 29 and sent it to the Senate for consideration. The Senate deliberations led to the amended stimulus package that was adopted by the full Congress tonight.

Next Steps: The final package now heads to President Bush’s desk for his signature. Americans who qualify for the rebates could receive them by as early as May of this year.

Please visit us at www.naifa.org/advocacy (http://www.naifa.org/advocacy)

found some more info about tax rebate while doing some research for class

here question arises:
if u are a student and paying tax, will u qualify for the rebate or not?
couldn't find anything about if legal internationals are eligible or not?

[melo]

Don't bring that tax rebate up. I was just complaining about it. :lol:

[rosefire]

Don't bring that tax rebate up. I was just complaining about it. :lol:
why? :D
message is too short,

[melo]

why? :D
message is too short,

Something about a country with a huge national debt, budget deficit, and the decreasing value of their currency deciding that it is a good idea to hand out money for no reason. :? Who cares about the future and our children anyways, right? :shock:

[Octavarium]

I think a really big problem with the tax rebate is that it will seriously contribute to the rising inflation; Fed's substantial rate cuts have already accelerated the inflation, now they are dumping $160b into the economy and that'll surely spur the inflation. In a long run this will hurt a consumer.

I think they should allow the economy to correct itself instead of artificially stimulating it.

[rosefire]

some more about Tax Rebate

Rebates: What you need to know
Friday February 8, 5:33 pm ET
By Jeanne Sahadi, CNNMoney.com senior writer

Lawmakers have given their final seal of approval to a $170 billion plan intended to spark the slowing economy.
*******
To be eligible for a full rebate, single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.
*******
Tax filers who do not owe income taxes because of various credits and deductions but have at least $3,000 in income - which can include Social Security and disability payments - will get $300 rebates per person or $600 per couple.
http://biz.yahoo.com/cnnm/080208/020808_rebates_what_you_need_to_know.html?.v=11&.pf='insurance'