The Chinese have the tax treaty and so do the Indians. But the Nepalese lag behind on this important matter as well. Each year thousands of Nepalese are coming to USA on student visa and pay thousands of dollars. Even the richest in Nepal cannot dare to afford the whole expense throughout the study. Many work parttime and at least dare to raise the cost for the living expense.

The saddest misery behind this hard labor is that even on this small income, there is income tax...state, then federal, and so on...

How much does a student pay total income tax in average each year? Why we cannot have a tax treaty with USA like our neighbours do ? How can we reduce the amount of income tax? What things can we claim as deductibles?

With those students with family and kids, how much can they claim on dependents and how can they claim?

Let's make this thread lively with important suggestions on tax 2006!!

People are in the US of A because of their choice, not because there's a law that tells each Nepali to go to the US. If you are in the states, pay tax as it is a big part of life. Live with it, and stop being a pansy!

yes, you are damn right, VincentBodega! Nepalese students are in US of A on thier will and it's their wit to pay tax honestly which I am sure they do every year. However, income tax is such a thing that if you know the twist and turns there are always some ways to claim for the deductions and allowances to lower your tax substantially, very much that a lawyer does for you. So, I am sure sure there are experts out there who can help those hard working students reduce thier income tax this year lawfully so that they they can concentrate more on thier studies. Are you not going to help them by simply sharing your experiences and suggestions?

paying tax by illegal immigrants does worthy for thoes who is getting legal status?

i came to know last year as we don't have tax treaty we can only claim less money from the federal and state tax than indians and chinese...

Question: I am an F-1 visa holder and my spouse is an F-2 visa holder. We both worked for wages last year and our employers withheld social security and Medicare tax. Can we claim refunds and how?

Answer: Under IRC Sec. 3121(b)(19), services performed by a nonresident alien visiting the U.S. on an F, J, M or Q visa, which are carried out for the purpose of the visa, are not subject to social security or Medicare tax. Note that you must be a non-resident alien. Once you have passed the substantial presence test you no longer qualify for the exemption. Also, family members on "-2" visas do not qualify for the exemption.

On-campus employment qualifies for this exemption. Off-campus employment that is permitted for a student, and is so noted on the student's copy of Immigration Form I-94, "Arrival-Departure Record," is also exempt. Off-campus work performed by students due to severe economic necessity or for optional practical training, as noted on INS Form I-688B or Form I-766 is also exempt. If you qualify for this exemption, you should contact your employer and tell them that you are exempt from social security and Medicare tax under IRC sec. 3121(b)(19), and ask for a refund. If the employer will not grant a refund we can apply for one from the IRS. Form 843 is used for this purpose and must be filled out correctly to successfully claim a refund. Ref: Social Security Tax.

Interest Income: Interest from a bank account or certain other US sources (for details, see IRS Publication 519: US Tax Guide for Aliens). Bank interest is not taxable, and IRS-defined nonresidentaliens should not report it

Medicare Deductions: A significant part of what is known as the FICA tax, Medicare Deductions are imposed on wages and salaries and credited to a combination of a retirement pension and medical benefits. The current rate is 15.3%: the employer pays 7.65% and the employee pays 7.65%. Nonresident aliens do not have to payMedicare Deductions.

Social Security Deductions: A significant part of what isknown as the FICA tax, Social Security Deductions are imposed on wages and salaries and credited to a combination of a retirement pension and medical benefits.The current rate is 15.3%: the employer pays 7.65% and the employee pays 7.65%. Nonresident aliens do nothave to pay Social Security Deductions.

As long as you are not a permanenet resident to claim social security and medicare when you get old, all the fed taxes, social security tax and medicare are all free $$ to the us government. but, if you want to work and make living in this country you better pay your taxes. you may get away with anything here, but IRS. they would spend thousands to get hundreds from you, and millions to get thousands from you. Don't mess with uncle sammy. By the way you do not get refunds on SST and MCT only FWT. you claim those after you are 59.5 now and 65 after 2015.

Srisiti, you're damn right. They also cut some amount of tax from me every month just because we don't have so-called tax treaty while the friends from other countries enjoy the full amount. It's really sad. That tax amount is more than i spend for my food here. It's so ridiculous to see stupid people saying that we don't need any treaty. Not only this if we've some other treaty, we can drive here for one year with a license from our country. And the idiots here are talking that we don't need any treaties. This is what so called royalists believe on. They just want to see the pain for the people from their own country. What is the use of government?

By the way, Gwajyo ji, how much tax in average does a student pay in a year...for example if you earn 25 thousand, roughly how much they tax out of this income? Can you please quote how much they charge every month?

I don't know how much they cut for my tuition, and I assume that it's equal with everyone. But I get some amount of funding, but I get less than everybody else coz' they cut tax from me, and this amount of tax per month is alot for me. When I asked other friends, they get the full amount, and I found out it's because of the lack of the treaties that you've mentioned. I'm sure that many more people have already gone through this, but people just never talk or let the government know or even if they know, they don't do anything, or most of people who've gone through this don't care about this once their business (study) is over.

Regarding other kind of taxes, I assume that it's equal for everybodyelse, and tax treaties can't be applied for exemption in this.

so far to my understanding, tuition remission is not taxed, but stipend is taxed for both state and federal. all j1 and f1 students are exempted for social security and medicare tax for first 5 yrs (non-resident) all the wages earned is taxable for both state and federal. i think (not sure) the tax rate is close to 15% of total

last year before claiming tax form i was happy that i will get some good amount of money back from state tax,but instead of it i needed to pay to the state....and when one of the friend i personally knew an indian who earned as equal money as i did ,she got good benifit because india has treaty...that time i learned that we get less money while claming from federal tax...before i never realised it......sad huh......

मेरो पनि ट्याक्स ट्रिटी नभएर मारमा परेका नेपालि दाजुभाइ दिदी बहिनीलाइ साहानूभुति छ । अमेरिका छिरेको पहिलो दिनबाटै म नेपालि नागरिक भएको कारणले भारती र चाइनिज भन्दा बढि ट्याक्स तिर्न बाध्य भएको छु । सगै काम गरेका भारती र चाइनिज भन्दा बढी ट्याक्स तिर्नु पर्ने कारण ले गर्दा सधै उनिहरुको भन्दा कम कमाइ को चेक बुझ्नु पर्थयो । अरु साम्रथ्यमा चाइनिज र भारतिलाइ उछिन्दा पनि नेपालि भएकै कारणले कर चाइ उनिहरुको भन्दा बढि तिर्नु पर्थ्यो । पछि थाहा लाग्यो उनिहरुको अमेरिकि सरकार संग ट्याक्स ट्रिटि रहेछ । तर अकाउन्ट सेक्सनमा काम गर्नेले नेपालीलाइ परेको यस्तो अन्यायको कुरा सिनेटमा राख्न लगाउन लागेको सुन्दा सारै खुशी लाग्यो । नेपाल सरकारले नेपालकै जनतालाइ वास्ता नगरेको बखतमा परदेशमा भएका नेपालीलाइ त केको गणना गर्छ र ?

Ok heres the answer to your Why:
The answer is we as Nepalese are worthless to the world. We have done nothing in the last 100/1000 years that we can be proud of. We have raped and looted the idealogies of being from the country of mount Everest and the birthplace of Buddha that its starting to sound sickening even to our own ears.
Rather you complain about this pointless topic and express your lust for things that are beyond your control, do something for yourself and your country men. Fcuk countrymen, do it for yourself. Do enough that you don't have to express your frustrations on some minuscule tax dollars.
Gwajyo, you ignorant piece of lard. I have said nothing about the King or the crown in this thread. I will tell you this thing, if its the Kingship that makes me able to pay my tax as I am suppose to without any loopholes and jelousy towards others that matter, then be it the Kingship!

Hey vincent...
If you don't agree and think these thread is pointless,,,you don't need to say lust for things to those people who were talking about claiming tax.....Its your own opinion...but the money we earn over here is not the money that we steal ..its honest money...and yes its frustating when you need to pay lots of money to the governement than the people who have tax treaty(gets good benifit)....I think yes it can be controlled if our government shows some interest.........and i think all these things we nepalese is suffering over here is might be due to poor country...
It is just my opinion...

things I dont understand:
who or what's government. Its not some bodyguard your papa had for you so that when trouble comes knocking on the door, the bodyguard is there to save your ass.
Another thing that I dont understand is WHY SHOULD THE GOVERNMENT GIVE A RATS ASS ABOUT YOU? (yes I am yelling) Why are you so important, why are you of any importance? May be what we need is some humility, so that, we can really be humble and look at ourselves. May be then we will stop pointing fingers. May be then one of us will strike back with something substantial so that tomorrow we can make a case with countries like the US for a tax break for our countrymen. Till then, lets stop embarassing ourselves by playing the same old "poor country" tactic.

THEN HEY WHAT'S THE POINT YOU ARE TALKING ABOUT TAX AND
The answer is we as Nepalese are worthless to the world. We have done nothing in the last 100/1000 years that we can be proud of. We have raped and looted the idealogies of being from the country of mount Everest and the birthplace of Buddha that its starting to sound sickening even to our own ears
Those statement you said are pointless...there is notihng to do with it/....

It is not only me saying that...there are lots of people who complain like that and i have seen even people claiming tax by filling the citizenship tax card..even though i have never done it...yeahh i know that we need to pay tax.//and i am not saying i am important...read the things carefully......you are rude and talking pointless things...
the concern is why can't we have tax treaty if other country have tax treaty..and they can benifit more...
'
you are dumbaass who talk pointless...if you think you are right then try to expalin properly and fact things..dont' think you are smart enough...and dont' try to point finger even though initially i didn't say any bad words to you...seriously i don't want to deal with person like you when i am writing my own tihnking and instead of replying in good manner just write uselesss things