Tax Savings in US

[H1 Infant]

Hi,



I just came to US two months back and was wondering if there are ways to save some tax here. Can I invest in any bonds or pay stuff like LIC in the US to save some tax (or ask my employer to pay a few components as reimbursements) ?



Also, if my dependents are not here, can I still say that I have dependents in India ?



Basic questions, but need advanced answers. Thanks a ton. This post will help other infants like me.

[Mayavi Morpheus]

The tax cut from your paycheck is fixed no matter what you do with your earnings. Its is only when you file your returns the next fiscal year that you can show your tax deductible expenditures. If you have dependants, mortgage, paying for tuition, paying for your kids Day care/school, charity, etc., then that money will be excluded from your taxable earnings (there is a limit on such expenditure) as almost all of these expenditures are tax deductible. File through a tax attorney and he will see that you get maximum returns.

Hope it helped!



ps: Dependents = wife/kids living in US. Family members back in India dont count as dependants.

[CtrlAltDel]

AFAIK, no developed country has these tax saving schemes that we have. whatever expenses are tax deductible, u have to show their proof while filing returns.

[KoolJack]

get tax advice from H&R block. they are cheaper too



block http://www.hrblock.com/

[KK]

get tax advice from H&R block. they are cheaper too

block http://www.hrblock.com/

Consult a desi tax advicer, he knows more hacks than H&Rblock ppl.

[Kewlguy]

HR block sucks

they have no clue



desi cpa are lot better

[asli_badmash]

Saving TAX not possible in US...



President needs your money to bring peace to another country.



I just hope this time it is Pakistan.

[CtrlAltDel]

Saving TAX not possible in US...

President needs your money to bring peace to another country.

I just hope this time it is Pakistan.

i hope it wudnt be pakistan...at least for now...



if Mushie's position gets shaky, it wud be a free for all nuclear mayhem over there and we wud be the worst affected...

[asli_badmash]

Saving TAX not possible in US...

President needs your money to bring peace to another country.

I just hope this time it is Pakistan.

i hope it wudnt be pakistan...at least for now...

if Mushie's position gets shaky, it wud be a free for all nuclear mayhem over there and we wud be the worst affected...

Yeah... and we dont want some MULLAH taking control of the N-BOMB man. I will give my money to that.



Pakistani N-Bombs are DUDs anyway.. but why take a chance.



A nation that was formed over a flawed ideal of Jinnah has come to become the thorn in everyones paw. That reagion for some reason has never been stable under any rule from time immemorial.



Anyway back to TAXES... try going to a financial consultant and he will tell you a lot about how to save money and make wealth.

[Akshay]

There is something called 401k. If your employer has a 401k plan then you can earmark a certain percent/amount of your annual income to be invested in shares/bonds of your choice available through the employer's plan. This share of money can be deducted from your salary pre-tax or post-tax. If you choose pre-tax then that money is deducted from your gross-income and is not taxed untill you withdraw the money from 401k plan, hence it is tax-deferred and NOT tax-exempted. If you choose post-tax then the money will be deducted from your net-income. One caveat is that most plans will not allow the pre-tax money contributed into 401k to be withdrawn at random, doing so will most incur a penalty. But normally post-tax money can be withdrawn any time with or without penalty depending on the plan. One big advantage with 401ks is that usually employer matches your contribution dollar-for dollar upto certain extent, this changes from company to company so ask your employer. If you do not contribute into 401k you loose the employer's match, essentially free-money.



Best bet, google about 401k, ask your employer's HR department and seek advice from colleagues and professionals.





Hope it helped.

[akshay]

AFAIK you need the SS number of each dependent whom you claim exemption for. This might rule out the exemption for your kid in India, unless he/she already has an SS number. First google and then consult a tax professional, better if he/she is a desi.



Good luck.