Federal and state tax determinations can change if the facts change. Thus, obtaining a green card or making it your intention to remain in the U.S. can impact the U.S. tax liability. Such situations should be reviewed with a tax advisor. Certain expenses are tax deductible in addition to those reflected in the above example. Some of the more common types include donations to U.S. charities, investment interest expense, certain moving expenses, and property taxes.
Planning can reduce taxes.
Certain taxpayers are entitled to make an election that could reduce taxes. An election may be available that will allow using lower tax rates available on joint returns. This adds an element of complexity, but it should be explored to determine if taxes can be reduced. The example shows that Elisabeth is due a refund upon filing her 1993 tax return. As mentioned above, she could have adjusted her withholding to reduce the taxes withheld from each semi-monthly paycheck so as to have no balance or refund due when the return was filed.