Question on Federal withholding

[Robyn-n-Kris 72]

I'm trying to find out why when Kris is working he is being withheld at a single rate. I understand the taxes withheld for a non-resident alien will be higher but does that mean we have to wait for his I-485 to be approved so they stop taking out so much? I mean, he came on a K-1, we got married as required what else do they want? It's kind of frustrating because its a decent chunk out of his paycheck. I'm hoping we get most of it back when we file for our taxes end of Jan but who knows.

Anyone have solid info?

[payxibka 10,044]

figure out what your status will be for the return to be filed and adjust your withholding accordingly... just remember if you are wrong you are responsible for any potential underpayment penalties

[Robyn-n-Kris 72]

figure out what your status will be for the return to be filed and adjust your withholding accordingly... just remember if you are wrong you are responsible for any potential underpayment penalties

Not entirely sure what you mean. when i file our federal returns it should be married filing jointly with 4 deductions. (me, spouse and 2 kids) I know once he gets approved for his GC this won't matter but its quite annoying since the whole purpose of the K-1 is to come here to get married and become a resident. But the government has never made much sense in the past. Especially when it comes to taxes.

[Old Dominion 26]

It may be that Kris made an error in filling out his W-4 when he began employment. That is how he (and he alone) decides how many dependents he has. Based on that, the payroll office determines how much federal tax will be withheld from the paycheck. He should take this up with his employer's human resources department.

[Otto 83]

figure out what your status will be for the return to be filed and adjust your withholding accordingly... just remember if you are wrong you are responsible for any potential underpayment penalties

Not entirely sure what you mean. when i file our federal returns it should be married filing jointly with 4 deductions. (me, spouse and 2 kids) I know once he gets approved for his GC this won't matter but its quite annoying since the whole purpose of the K-1 is to come here to get married and become a resident. But the government has never made much sense in the past. Especially when it comes to taxes.

As far as I know - LPR tax withholdings are the same as USC.

The W4 is what the employer uses to calculate tax withholdings. (Single, Married, Dependants, etc.)

If you're unsure that his withholdings are correct - check out this calculator HERE

IRS Form W4 (2008)

[payxibka 10,044]

figure out what your status will be for the return to be filed and adjust your withholding accordingly... just remember if you are wrong you are responsible for any potential underpayment penalties

Not entirely sure what you mean. when i file our federal returns it should be married filing jointly with 4 deductions. (me, spouse and 2 kids) I know once he gets approved for his GC this won't matter but its quite annoying since the whole purpose of the K-1 is to come here to get married and become a resident. But the government has never made much sense in the past. Especially when it comes to taxes.

if your status will be M4 then prepare the W-4 accordingly based on this....

[anitacastillo 0]

His company's payroll dept/people will not change the withholding just because you got married.

He needs to complete a new W-4. You could find one on-line, do it together and take to his employer or he could request from them. Don't worry about the top part of the form. The bottom third is all you need and it is short. Sounds like you want Married and 4.

Good Luck!!

[Robyn-n-Kris 72]

When we filed his W-4 (i was there since we work at the same place) it states M 2 (we never do higher than that on the form so we can get more back when we do the return) The first check still showed single the second check (today's) showed M (married) and 2. Yet the tax that has been withheld has been still at the single rate. I know on the W-4 there is an indication that non-resident aliens are withheld at a single rate. That's where it is confusing because he is a resident here just waiting on the blasted GC.

[anitacastillo 0]

I suggest you both go to the HR dept and gently ask why it is not M2. Someone may have mistyped. Or, if you provide the GC copy they can adjust.

[Otto 83]

When we filed his W-4 (i was there since we work at the same place) it states M 2 (we never do higher than that on the form so we can get more back when we do the return) The first check still showed single the second check (today's) showed M (married) and 2. Yet the tax that has been withheld has been still at the single rate. I know on the W-4 there is an indication that non-resident aliens are withheld at a single rate. That's where it is confusing because he is a resident here just waiting on the blasted GC.

The W4 (Line/Section 3) The options are:

[]Single

[]Married

[]Married, but withhold at higher Single rate.*Note. If married, but legally separated, or spouse is a nonresident alien, check the “Single” box.

Perhaps he checked the third option when it should/could be the second. In the end it doesn't really matter what is claimed on the W4, it's what is claimed on the ITR each year that does - the only thing HR should be concerned about is that you're married.

Edited December 30, 2008 by Karin und Otto

[Robyn-n-Kris 72]

When we filed his W-4 (i was there since we work at the same place) it states M 2 (we never do higher than that on the form so we can get more back when we do the return) The first check still showed single the second check (today's) showed M (married) and 2. Yet the tax that has been withheld has been still at the single rate. I know on the W-4 there is an indication that non-resident aliens are withheld at a single rate. That's where it is confusing because he is a resident here just waiting on the blasted GC.

The W4 (Line/Section 3) The options are:

[]Single

[]Married

[]Married, but withhold at higher Single rate.*Note. If married, but legally separated, or spouse is a nonresident alien, check the “Single” box.

Perhaps he checked the third option when it should/could be the second. In the end it doesn't really matter what is claimed on the W4, it's what is claimed on the ITR each year that does - the only thing HR should be concerned about is that you're married.

This is very true and its the whole question of why he would have to be considered single box if he is married lol.. we will just let it go (he's going to call HR as well) and do our taxes. We are anticipating his GC getting approved very soon.

Karin/Otto... you are in Austin? Same here!

[Otto 83]

Karin/Otto... you are in Austin? Same here!

Yup..in sunny (for now) Austin...

[Kathryn41 3,205]

For tax purposes he is considered a resident alien not a nonresident alien even if he doesn't have his green card yet. Make sure they are aware of the difference - he is living and working here legally so he is a legal resident for income tax purposes.

[I'm Gone 60]

http://www.irs.gov/businesses/small/intern...=106274,00.html

Special Instructions for Form W-4 For Nonresident Alien Employees

A nonresident alien subject to wage withholding must give the employer a completed Form W-4 to enable the employer to figure how much income tax to withhold. In completing the form, nonresident aliens should use the following instructions instead of the instructions on Form W-4.

For Forms W-4 completed after December 31, 2005:

1. Check only "Single" marital status on line 3 (regardless of actual marital status).

2. Claim only one withholding allowance on line 5, unless you are a resident of Canada, Mexico, South

Korea, a U.S. national, or a student or business apprentice from India.

3. Do not claim “Exempt” withholding status on line 7.

4. Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4.

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When they talk about nonresident alien. they mean someone that doesn't qualify as a resident alien for tax purposes, not that are living outside of the U.S.

Determining Alien Tax Status

http://www.irs.gov/businesses/small/intern...d=96392,00.html

f you are an alien (not a U.S. citizen), you are considered a nonresident alien unless you meet one of two tests. You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year.

[payxibka 10,044]

For tax purposes he is considered a resident alien not a nonresident alien even if he doesn't have his green card yet. Make sure they are aware of the difference - he is living and working here legally so he is a legal resident for income tax purposes.

Yes he is or could be... However, you can have your EAD and STILL be considered a non-resident alien for tax purposes.... There are two tests (greencard & substantial presence). If you do NOT meet one of these tests then he still could be a non-resident alien for tax purposes. There is a special exception election for spouses of USC's to be treated as such but then again he could opt out....