Federal Tax on OPT

[apalanki]

I don't know if this is the right place for the question on taxes while on OPT, please excuse my ignorance.

 

I am in my OPT period, I live in Tennessee and I got my first pay check yesterday and the way the taxes were put on the pay stub does not make sense to me.

 

The base pay was $4000 and the federal tax withheld was $970.24, which is about 24% of the pay and thats the only tax on my pay stub. Is this right? because I have read many forums and online that the Federal tax for OPT was supposed to be 15% (One reference: http://www.askmehelpdesk.com/taxes/federal-tax-percentage-md-state-tax-opt-students-477210.html).

 

If this is usual, what percent could I expect in my tax return?

 

 Thanks for your time and any valuable comments are appreciated!

[t75]

Federal tax depends on total annual income. There is no set tax rate for OPT.  If the base pay was $4K per month, that turns out to be 48K per year and you will pay monthly taxes on that even though you may not make that since you will not work 12 months this year. Most payroll programs have a set rate built in; you may not have completed a W-4 correctly which will cause an overwithholding. Even if you pay too much, it is not a problem since you will have them refunded in 2015 after you file your 2014 return.

 

As a test, complete (but do not file) a 2013 form using your 2014 income estimate.