Discussion:Employee of world bank
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Waynemetro (talk|edits) said: | 23 March 2006 |
| Hi,
I am preparing the individual 1040 for a world bank employee the w-2 shows no withholding and after checking pubs 901 and 579 . This client will have to pay both federal income tax and self employment tax. This does'nt seem accurate do you all now of a better allocation of the 2005 tax code . the client is a naturalized us citizen. | |
| 26 March 2006 | |
| The International Organization wages you described are exempt from Federal income tax withholding under Sec. 3401(a)(5). Such wages are also exempt from FICA and Medicare withholding under Sec. 3121(b)(15).
However, wages received from international organizations are exempt from U.S. Federal income tax only if the employee is not a citizen of the United States. See Sec. 893. In this case, if your client is a citizen of the U.S., I agree that his wages from the World Bank are subject to Federal income taxes under Sec. 893. In addition, he will be subject to SE tax under Reg ยง 1.1402(c)-3(d). | |
| 26 March 2006 | |
| This one has been bothering me for a while. My first job was around the corner from the UN and I remembered doing some of these but for the life of me could not remember what I did...except for banned substances, but then it was the late sixties. The employee has to specifically request the appropriate withholding on change of status. And if it matters, I seem to remember an exemption for dual citizen Filipinos. | |
| 26 March 2006 | |
| no. they actually don't have to withhold, but the payroll department does something about this situation or at least they used to. Don't think it helps in the current year. | |
Add search term: United Nations
Post from a non-tax-pro was moved to a related discussion on the consumer forum.
