TAXES

Income Tax
Federal Income Tax
Illinois State Tax
Filing Income Tax
Social Security Tax
Sales Tax

Income Tax

Federal and state income taxes are withheld (deducted) from all Argonne paychecks. This withholding procedure is regulated by law. Residents of certain foreign countries having tax treaties with the United States may be entitled to reduced rates of, or exemptions from, tax under the applicable tax treaty. If you believe you qualify for such a tax exemption contact the Argonne Payroll Department for advice. The individual tax year is from January 01 to December 31 of each year.

The amount of taxes withheld depends on whether you are a resident or non-resident for tax purposes. Non-resident aliens are permitted only one personal exemption, and tax withholding is made under the "single" status withholding tables for both state and federal taxes. Resident aliens (Green Card Holders) are permitted to claim as personal exemp­tions their dependents that are also resident aliens, and tax withholding under the "married" status (if applicable). Non-resident aliens are able to correct this inequity when completing and filing their tax returns. At that time, you will determine any difference (positive or negative) between what you owe and what was withheld by Argonne and receive the appropriate refund or tax bill.

Federal Income Tax

The federal tax you actually owe is determined by an Income Tax Return (Form 1040 or 1040NR for Nonresident Aliens), which you must file with the U.S. Internal Revenue Service between January 1 and April 15 of the following year. The Internal Revenue Service gives free and off-the-record advice on how to save on taxes and will mail you forms and publications. Their toll-free telephone number for information is 800-829-1040. Information, forms and publications are also available on the Internal Revenue Service web site. Some publications of special interest:

• Publication 505 - " Tax Withholding and Estimated Tax"
• Publication 519 - " United States Tax Guide for Aliens"

Each person included on the tax form must have a Social Security Number. If your dependent (i.e. spouse, child) is not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA) they must obtain an Individual Taxpayer Identification Number ( ITIN) for you to deduct them on your tax return. ITINs are issued regardless of immigration status because both resident and nonresident aliens may have U.S. tax return and payment responsibilities under the Internal Revenue Code. An example would be a dependent or spouse of a resident alien or dependent or spouse of a non-resident alien visa holder.

An ITIN does not authorize work in the U.S. or provide eligibility for Social Security benefits or the Earned Income Tax Credit. ITINs are not valid identification outside the tax system. IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers. Once a SSN has been obtained for a person the ITIN is no longer valid.

Illinois State Tax

Illinois income taxes are withheld at a 3.0% rate, after reducing the monthly taxable salary by the personal exemption amount allotted for the year. State tax forms are due on April 15th as are Federal Tax forms. The state revenue department offer s free advice by telephone (1-800-732-8866) and internet.

Filing Income Tax

Your income tax return is due on April 15th. You must file separate forms for Federal (1040) and State (IL-1040) taxes. If you are expecting a sizable refund (since you were only allowed to make a single exemption on your taxes) it would be worthwhile to submit your taxes as soon as you have all the appropriate documentation and not wait for the deadline. Refunds are dealt with on a first-come-first-served basis.

There are many commercial programs available that will guide you in completing these forms, calculating the tax and filing on-line. It may be a worthwhile investment to a newcomer to the United States to use one of these programs and ensure that all legally required taxes are paid (yet not overpaying). There are also free versions of these tax programs available on the internet; however they are only suitable for basic tax requirements.  Websites are available that rate free tax filing programs. 

To speed up the process you may qualify to file electronically with e-file. Most of the commercial programs will facilitate this or you can check out the IRS website.

On the other hand you may choose to seek the advice of a professional tax consultant or Certified Public Accountant. For a referral ask your colleague or check the internet or telephone directory. The professional fee or cost of the tax program is a tax deductible expense.

Social Security Tax

Social Security tax, referred to as FICA, is with­held as a percentage of wages up to a maximum wage base. Non-resident foreign visitors with an Exchange Student (F) or Exchange Visitor (J) Visa are exempt from this tax. For all others it is mandatory, even if you do not expect to take advantage of the Social Security benefits, such as retirement income.

Sales Tax

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