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July 1, 2022
Question

Tax witholding for the W-4 form and the IT-2104

  • July 1, 2022
  • 1 reply
  • 1 view

Hi!

 

I am an international student here who earns a source of income in the U.S. as an intern. I am required to pay taxes and need to fill out the W-4 federal tax form and the IT-2104 state tax form. However, I do not know what income tax witholding is, whether I am eligible for it, and how much I enter in for the amount of tax witholding!

 

 

    1 reply

    Level 15
    July 2, 2022

    @5083158 ,  are you talking about being an intern during the summer break ?

    1. US tax system , while voluntary (?) works on kind of Pay as you earn ( PAYE) and tries to  use W-4 as a means  for the  taxpayer to tell the  employer how much tax is to be withheld ( i.e. taken  out of the paycheck ) per pay period. This withheld amount ( for  the federal & State ) are then deposited  directly with the taxing authority. 

    2. The official aim  for the form is to  "pre-pay " what would be owed  when you file your return ( a reconciliation effort ) at the end of the tax year.  However, in actual fact , most taxpayer allow the  employer to withhold  and transmit ( to the taxing authorities) more  than required to be current -- thus expecting a large refund at the end of the year ( it is like a free loan to the authorities but also a savings plan for the taxpayer.  Whereas the  IRS / State is legally only required / allowed to collect  what is due, by you signing the W-4  , you make a voluntary  excess / loan to the taxing authority.

    3. For  a student only working during the Summer as an intern , generally  and using "Single"  filing status  is normal and generally sufficient.

    4. For international students however, this may be too much depending on the country you are from -- because some treaty countries assert NO  taxation on students up to an amount or for a number of years.  Thus you should tell me which country you are from.   Generally though it is safe  for you to use  1 ( single ) as  filing status and no other special  deductions.

     

    P)lease tell me which country you are from, when you first entered this country, what visa are you on etc. etc.

     

    pk

    July 5, 2022

    Thank you for providing helpful information! I am currently from Japan and on an F-1 Student visa.

     

    To clarify some of the things you said, what amount would I put on the W-4 form and the state IT-2104 form if it asks me for how much I would like to withold?

    Level 15
    July 5, 2022

    @5083158 , try this link to the official estimator  offered by the IRS --->https://www.irs.gov/individuals/tax-withholding-estimator

     

     

    pk