Hi,
I am a L1Visa holder, India citizen.
I have joined a job in US on 2nd Oct 2023.
I was not in the US in any of the preview years 2020, 2021, 2022 and only entered US on Sec 28 2023. So I think i dont clear the "substantial presence test" for 2023 year (Jan-Dec).
My wife and son are in India and would probably join me in end of March 2024 or early April 2024.
I have to submit to my employer that would I be filing the W4 as which of the following 3:
1) Single or Married filing seperately
2) Married filing jointly
3) Head of Household
I want to understand that which option I will be able to select and file the final taxes. As far as I understand option 2 (Married filing jointly) is the most tax effective - but I want to understand that considering my case, can I opt that - and if yes then what all documents and evidences I will need to submit for my tax return.
Need kind advise.
On the W-4 choose the single/MFS option to be safe and don't enter anything on lines 3 & 4.
@sundepsony - follow @Critter-3 's advise.
That W-4 is simply to determine the withholdings or as I like to call it "the downpayment" against the tax that MAY be owned.
"tax" is only calculated on the tax return. Then the downpayment is applied against that tax liability and what is left over is either a refund or the Amount Due.
The point is the W-4 withholding is not binding, so be conservative on the W-4 under the circumstance.
@sundepsony , agreeing with my colleagues @Critter-3 and @NCperson , on W-4 and the reasonings thereof. I just wanted to add for 2023 tax year you will remain a Non-Resident Alien ( NRA ) --- unless you seek changes ( which my view would not help your tax situation ) . The NRAs need to file their tax return on form 1040-NR ( not supported by TurboTax ( you can do it yourself but also can use SprinTax, or Tax Professional , familiar with international taxing and US-India Tax treaty.
Note that as a Non-Resident Alien, you are taxed on ONLY US sourced / connected income ( not your world income ), must use itemized deduction and you file Married ( essentially single for tax purposes ). Also any passive income (US sourced interest , dividend etc. ) would be taxed at a flat rate of 30%..
Come Jan of 2024, you should give your employer a new W-4 , claiming Married Filing Joint..
Is there more one of us can do for you ?
pk
On the W-4 choose the single/MFS option to be safe and don't enter anything on lines 3 & 4.
@sundepsony - follow @Critter-3 's advise.
That W-4 is simply to determine the withholdings or as I like to call it "the downpayment" against the tax that MAY be owned.
"tax" is only calculated on the tax return. Then the downpayment is applied against that tax liability and what is left over is either a refund or the Amount Due.
The point is the W-4 withholding is not binding, so be conservative on the W-4 under the circumstance.
@sundepsony , agreeing with my colleagues @Critter-3 and @NCperson , on W-4 and the reasonings thereof. I just wanted to add for 2023 tax year you will remain a Non-Resident Alien ( NRA ) --- unless you seek changes ( which my view would not help your tax situation ) . The NRAs need to file their tax return on form 1040-NR ( not supported by TurboTax ( you can do it yourself but also can use SprinTax, or Tax Professional , familiar with international taxing and US-India Tax treaty.
Note that as a Non-Resident Alien, you are taxed on ONLY US sourced / connected income ( not your world income ), must use itemized deduction and you file Married ( essentially single for tax purposes ). Also any passive income (US sourced interest , dividend etc. ) would be taxed at a flat rate of 30%..
Come Jan of 2024, you should give your employer a new W-4 , claiming Married Filing Joint..
Is there more one of us can do for you ?
pk