The best way to save on your Tax Return
If you have worked in the USA for less than a year, you have most probably overpaid tax. We are here to help you get it back! *April 15, 2016, is the last day to file your 2012 tax return to claim a refund; if you had an extension, your deadline is October 15,2016. If you miss the deadline, any excess in the amount of tax you paid every paycheck or sent as quarterly estimated payments in 2012 goes to the U.S. Treasury instead of to you. OptimumTax Agency makes direct contact with the IRS. We operate without intermediaries, which makes the refund process much faster and cheaper. We offer a fixed price without additional costs, which is currently the lowest in the Balkans region and wider. The owner of OptimumTax Agency is an Enrolled Agent (the highest credential awarded by the IRS), so in addition to the extremely favourable prices, you will also get the top quality of tax services in our agency.
General info about Taxes
There are four types of income tax in the USA:
- Federal Income tax,
- State Income tax,
- Local Income tax and
- FICA (Social Security and Medicare) taxes.
- In the United States, federal income tax is collected by the Internal Revenue Service (IRS), a branch of the United States Treasury. You must pay federal income tax regardless of where you live in the United States.
- Also, most states have additional state income tax. However, states like Texas, Florida, Nevada, Washington, Wyoming, South Dakota, and Alaska have no state income tax. Tennessee and New Hampshire only apply state income tax to interest and dividend income. Of course, each state will collect taxes from you in one way or another. Generally, states that don’t charge income tax impose higher rates on things like property tax or sales tax.
Federal and State taxes are paid and refunded separately.
If you had income in the US, you can see on your pay check all the taxes that were deducted from your earnings.
- Local income Tax refund is connected with the State income tax refund.
- Social Security and Medicare (FICA) taxes – F.I.C.A. stands for the Federal Insurance Contributions Act, which is a taxation on income earned where the funds are used for federal programs that provide benefits for U.S. citizens and permanent residents when they retire, are disabled, or are the children of deceased workers. Funds withheld for F.I.C.A. are reflected on pay check stubs and also in boxes 4 and 6 on the W-2. J, M or F visa holders are typically exempt from paying F.I.C.A. taxes and these taxes should not be deducted from pay checks. If your employer has mistakenly withheld F.I.C.A. taxes, you must work with their employer directly to request a reimbursement. Inform the employer about your USA non-immigrant status and your type of visa, so that they can give you the reimbursement on your next pay check. You can do this by referring to the IRS pub 519, chapter 8, page 45, where it is clearly stated that, as J, M or F visa holders, you are exempt from paying these taxes. If the employer will not assist a taxpayer, file IRS forms 843 and supplemental form 8316 to request a refund of these taxes. The process of getting the FICA tax refund can last up from 6 months to two years. On this link “Necessary documents” you can find which document you will need to apply for FICA tax refund. OptimumTax Agency does not charge for this refund, if you are filing Federal and State tax refunds with us.
A tax year in the USA is counted from January to December 31, and you are required to file federal income tax returns by April 15 if you owe money to tax authorities. A claim for refund of an overpayment of any tax imposed must be filed within 3 years from the time the return was filed or 2 years from the time the tax was paid.
If you are working for someone, your employer is required to deduct federal income tax and state income tax (if any) from your pay check. Your employer is also required to deduct Social security plus Medicare contributions, which are collectively called F.I.C.A. (if you are not exempt from paying these taxes).
W-2 form is a form you should receive from each of your employers at the end of the tax year. It shows all your earnings with the particular employer and the taxes that were withheld from you. You should receive your W-2 no later that the end of January of the following tax year.
- Employer must five Copies B, C and 2 of Form W-2 to the employee by January 31. If and employee stops working for the employer before the end of the year, employer may give the employee Form W-2 anytime prior to January 31, but no later that January 31. If the employee asks for the Form W-2, the employer must give Copies B, C and 2 of Form W-2 to the employee within 30 days of the request or within 30 days of the final wage payment, whichever is later. Tax Topics-Topic 752 (https://www.irs.gov/taxtopics/tc752.html)
A pay stub or a pay slip is a weekly or monthly document which you received along with your weekly or monthly pay check. To prepare your tax declaration we needed the final pay slip/pay stub you got from each employer.
If you have any further questions related to the USA taxes, feel free to contact us and we will reply as soon as possible.
Frequently Asked Questions
- The documents can be filed after the end of the tax year. At the moment you can apply for 2012 and the recent years.
- When will I get my refund?
- Usually, it takes 6-10 weeks for your federal refund and 6-16 weeks for the state one, depending on the particular state you have worked in.
* Although most taxpayers will receive their refunds long before the IRS begins choosing returns for audit, the IRS may hold your refund if your return includes certain obvious errors, such as impossible deductions or omissions of documented income. If you receive your refund and the IRS later chooses your return for audit, you may need to return a portion of the refund, depending on the audit's outcome.
- Do you guarantee my refund?
- We are unable to guarantee the initially estimated refund amount, we apply for the maximum the law allows but the final decision belongs to the Tax Authorities.
- What documents do I need in order to apply for tax refund?
- copy of your Social Security card,
- copy of your visa and passport,
- copy W-2 or a final cumulative pay slip from each employer,
- completed and signed OptimumTax application which you can download (download).
*For more information about necessary documents please visit “Necessary documents”.
If you have any further questions, feel free to contact us and we will reply as soon as possible.