Taxes for H1B/OPT – How Much Tax to Pay While Working on H1B or and OPT?
- August 27, 2017
- Posted by: ProfessionalGuru
- Category: IT
Tax calculation for h1b visa holders (OPT) – How much tax to pay?
[Tax is more for H1b than opt! ]
QUESTION – Do you pay more taxes while working on and H1B vs and OPT?
ANS – When you are working on OPT you only pay your Federal and State/County/City taxes. When you start your H-1B then you get an added burden of FICA taxes – Social Security and Medicare Taxes. In this way your total taxes paid to the IRS does increase because now you have to pay FICA taxes as well.
ANS – If you passed 5 years waiver period from significance present test while on F1 (before OPT), you will pay the same taxes.
If I Work in the USA With an H1B Visa, How much tax i have to pay?
Federal Income Tax
The US tax rate for individuals is range from 10% to 39.6% Tax rate depending on your income Level. Most unmarried H1B holder workers will pay a rate of 25-28% on taxable income based on average H1B occupation wage levels.
OPT Visa Holders
OPT status holders have to pay Federal and State taxes like H1B Visa holders but unlike them OPT people need not pay Social Security and Medicare taxes which will help them to save little bit while working in OPT status.
You can access tax filing documents in these below links. You can file using either one of these forms.
H1B Visa Holders
H1B Visa holders have to pay Federal, State, Social Security and Medicare taxes based on their income. You can find more on US official website.
If you have H1B Visa, you have to have a job to pay taxes. There is nothing like no job on H1B Visa. If you have H1B visa it means you have a job for that you have to pay tax. So be clear on this.
You can access tax filing documents in these below links.
Article Original Source – Quora