Tax on a $24k salary (Hope: rent, credit, how much)

[ricastle]

Can anyone help me work out how much of a tax (and social security etc) hit I will take on a $24k annual salary? I have a scholarship for $18k over 9 months at CUNY and need to work out how much I will actually have left after tax. For some reason when I ask the Uni all I get is "US tax is very complicated" which I already know. I just need a ballpark figure to help me with my cost of living, rent etc calculations (which others here have already helped me with, thank you all!)

[cjma79]

PaycheckCity.com | Paycheck Calculator

[ricastle]

Does exactly what it says on the tin - thanks very much! I work out I should net about $1500 a month - does this sound right?

[texags02]

Tax lawyer here. You don't pay tax on the scholarship to the extent it goes to tuition, fees and books. If after that, the amount you receive is in excess of the standard personal exemption provided for the year (likely between 8-9k for 2008), then you'll have tax liability. You likely won't have any, but I don't know the cost of tuition, fees and books at the school you're going to. This is if the scholarship is a "qualified" scholarship under Section 117 of the Internal Revenue Code. It isn't if you're receiving it conditional on you teaching, doing research, etc., then it isn't "qualified" and is fully taxable. Hope this helps.

[ricastle]

Thanks tax lawyer - the scholarship is $18k on top of a tuition waiver, so approx 9-10k would be taxable I guess? For the first year there is no requirement on me to teach/research etc (years 2-4 do have that requirement). Does being an international student on an F-1 visa make much difference? Do you know if I can exempt myself from paying the other taxes apart from income tax, FICA? Medicare? When I had a scholarship previously in the US, i paid all these taxes up front, but later discovered that the UK had an agreement with the US and I could claim back nearly all of social security etc taxes I had paid. I still paid some federal income tax, although it wasnt much. Thanks for your help.

[texags02]

I think you'll still be subject to the federal income tax, but like you said, the UK evidently has a treaty with a US that provides that you don't have to pay SS tax (for obvious reasons). I don't know if the UK has an all-inclusive system like we do here in the US, but if they do, you might be able to get a credit for the federal income tax paid here if you're also required to file in the UK this year. I'm not really certain about all that. Honestly, you're tax liability is going to be really really low on the amount of income you have to claim; however, I've been there myself as a student, and every $ counts. I'm not an international guy-I do corporate/mergers & acquisitions work, so I'm sorry that I can't fully answer your question off the top of my head. Check with CUNY and see if there is an int'l student advisor in the financial aid office that might know something about your situation since they deal with it on a regular basis I'm sure.