Your taxes can be calculated based on your yearly income using the U.S. Tax Tables. The tax table for a single filer in 2020 states that if a person has annual income of $9,875 or less, they must pay 10% in taxes. Next, if a person has annual income between $9,875 and $40,125, then this person must pay 12% in taxes.
Isaiah is an international student from Brazil and has made income of $9,000 from an on-campus job. He is currently filing his taxes for the year 2020 and must use the tax table to calculate how much tax he must pay.
Since Isaiah’s income falls in the 10% tax bracket, he will pay $900 for his total income of $9,000. This tax amount can be paid in advance or reduced if he allowed his employer to remove taxes from his paycheck or has other tax deductions.
Moses, an international student from Japan does not have an on-campus job but he is a resident advisor (RA) at his university. In 2020, he received a total RA compensation of $3,000. This money was paid directly to him and did not contribute to tuition or any other school fees.
Moses is currently filing his taxes for 2020 and must figure out the amount of taxes to pay. Since compensation received from scholarships are non-effectively connected income, Moses will be taxed at a 30% rate on his funds. So, the total tax he must pay for the year 2020 would be $900.