Moving to Orange county-but how much are the taxes and so where can I afford??!! (Santa Ana: get credit)

[hannah555]

Hi everyone,
I am moving to Orange County from the UK around June/July time to start a postdoc position at the Irvine Medical Center, Orange. I am just trying to work out what kind of place I can afford to rent and where.

I would like to be in cycling distance of the Medical center but also quite near the beach so have been looking at places like Costa Mesa as there seems to be a paved cycle route all the way along the river from here to the Medical center.

But I'm not sure if I can afford the rents here as I need to know how much I will be taxed. I think because UK has some sort of tax treaty with the US i don't have to pay income tax if I stay less than 2 years but how much are the state and city taxes? I have heard they are quite high but can't find anywhere that says how much they are? My salary is only 34,000 (plus benefits) so I don't have a massive budget. Can anyone recommend an area for me to look.

I am 27 and single so would like to live in an area with people my age preferably with some local bars, shops etc. Also would prefer somewhere with a pool (wouldn't we all!)-other than that I'm pretty flexible!

One more question- do you think it works out generally cheaper to rent with all utilities included? How much would the average cost of garbage, water, electricity, gas, cable/internet be on a one bedroom apartment? I think I would prefer to have it all included for ease but if its cheaper not to then obviously I'd like the cheaper option!

Thanks heaps for any help you can give

[mcorrales]

A one bedroom apartment is going to cost you about $1200 a month for a so-so area. Most apts you will pay gas/electric and cable, some you will pay all including water, sewer and the above. At $34,000 a year, if you are paying taxes, including federal, state, social security and disability and being single you would clear maybe $28,000 a year if you are lucky. If you are paying any part of your health benefits (I used to pay approximately $300 a month) you can deduct that. With a minimum of $1,000 a month, you would be looking at about $14,000 a year to live off of. If you own a car and being young and single, you would be paying at least $100 a month for that. Gas is going sky high again (as usual) and registration fees for that car are pretty high depending on what you drive. If you pay your own utilities, look at about $150-$200 a month not counting cable, add $100 for cable. As you can see, it will be tight for you to live there on that salary. I made $60,000 a year, was old and single and barely made ends meet. It has an extremely high cost of living, and you cannot bike everywhere, too much traffic. Good luck, I moved out of there last year to Pennsylvania and I love it here.

[bhcompy]

i would try and contact a tax service/CPA in the area that specializes in your situation. they could help you plan out what you will most likely pay in income taxes, which could make a major difference if you say you shouldnt have federal income tax

[BreaOC]

Originally Posted by hannah555

Hi everyone,
I am moving to Orange County from the UK around June/July time to start a postdoc position at the Irvine Medical Center, Orange. I am just trying to work out what kind of place I can afford to rent and where.

I would like to be in cycling distance of the Medical center but also quite near the beach so have been looking at places like Costa Mesa as there seems to be a paved cycle route all the way along the river from here to the Medical center.

But I'm not sure if I can afford the rents here as I need to know how much I will be taxed. I think because UK has some sort of tax treaty with the US i don't have to pay income tax if I stay less than 2 years but how much are the state and city taxes? I have heard they are quite high but can't find anywhere that says how much they are? My salary is only 34,000 (plus benefits) so I don't have a massive budget. Can anyone recommend an area for me to look.

I am 27 and single so would like to live in an area with people my age preferably with some local bars, shops etc. Also would prefer somewhere with a pool (wouldn't we all!)-other than that I'm pretty flexible!

One more question- do you think it works out generally cheaper to rent with all utilities included? How much would the average cost of garbage, water, electricity, gas, cable/internet be on a one bedroom apartment? I think I would prefer to have it all included for ease but if its cheaper not to then obviously I'd like the cheaper option!

Thanks heaps for any help you can give

Given your $34,000 salary you can rent $990/month (considering most apartments require that your rent be no more than 35% of your gross monthly income.) Most apartments require you to pay electric, phone, and cable and a few will make you pay for part or all of the gas, water/sewer, and/or trash, so make sure you ask about what your expected to pay. Quite a few apartments also require you to have your own refrigerator, so be sure to ask about that as well. Great resources would be Apartments.com, ForRent.com, and Rent.com. Many will suggest a site called craigslist, however you have to use that site cautiously because not all advertisements are legitimate. As for your bills, after you find an apartment you are seriously considering you can call the utility companies and inquire on the average bill for that apartment. I just did that yesterday actually and it is quite helpful for figuring your budget.
As for your net paycheck (after taxes), considering you are exempt from federal taxes and claim 0 (zero) you would be looking at an approximate biweekly paycheck of $1161, $2322/month. (Care of PaycheckCity.com) After rent that leaves you with $1,332 left over for bills, gas, food, etc...
P.S.- I checked ForRent.com and found numerous apartment options for you (both 1 bedroom and studio) in Orange County that are less than or equal to $990 that aren't in Santa Ana (not bashing Santa Ana, but I wouldn't recommend it to someone who has never been there.). You will easily be able to find an apartment in your price range. Good Luck!

[GirlsRUs]

Originally Posted by hannah555

Hi everyone,
I am moving to Orange County from the UK around June/July time to start a postdoc position at the Irvine Medical Center, Orange. I am just trying to work out what kind of place I can afford to rent and where.

I would like to be in cycling distance of the Medical center but also quite near the beach so have been looking at places like Costa Mesa as there seems to be a paved cycle route all the way along the river from here to the Medical center.

But I'm not sure if I can afford the rents here as I need to know how much I will be taxed. I think because UK has some sort of tax treaty with the US i don't have to pay income tax if I stay less than 2 years but how much are the state and city taxes? I have heard they are quite high but can't find anywhere that says how much they are? My salary is only 34,000 (plus benefits) so I don't have a massive budget. Can anyone recommend an area for me to look.

I am 27 and single so would like to live in an area with people my age preferably with some local bars, shops etc. Also would prefer somewhere with a pool (wouldn't we all!)-other than that I'm pretty flexible!

One more question- do you think it works out generally cheaper to rent with all utilities included? How much would the average cost of garbage, water, electricity, gas, cable/internet be on a one bedroom apartment? I think I would prefer to have it all included for ease but if its cheaper not to then obviously I'd like the cheaper option!

Thanks heaps for any help you can give

Congrats on your professional achievements.

Costa Mesa would be a great fit for you, in my opinion. You will love the weather in California. I hope you meet some great friends and have a blast!!!

[hannah555]

Thanks so much everyone for your helpful advice. It has been really useful and also made me slightly less apprehensive about coming over!! It can be a bit daunting when you just don't know what to expect and with my small budget I thought it was going to be really hard to live happily in California. But you have reassured me that it is possible and now I'm really excited again! Anything has to be better than England's cold and rain!!!

[kettlepot]

Originally Posted by hannah555

Thanks so much everyone for your helpful advice. It has been really useful and also made me slightly less apprehensive about coming over!! It can be a bit daunting when you just don't know what to expect and with my small budget I thought it was going to be really hard to live happily in California. But you have reassured me that it is possible and now I'm really excited again! Anything has to be better than England's cold and rain!!!

The issue really depends on what the Tax Treaty allows. If you are exempt from federal income and social security taxes, then are you required to pay UK income tax and contribute to whatever government pension scheme they have over there on your US income?

Assuming that you are exempt from both UK and federal US taxes, but do have to pay CA income tax and pay the California Disability Insurance Tax that could be as much as $1800 per year. This is based on the assumption that Aliens subject to the tax treaty aren't allowed to claim the personal exemption and the standard deduction. If you are allowed to claim them, then your tax will be less. Perhaps only $1300. There is no county or city income tax.

There will be an approximate 8% sales tax on purchases which is small potatoes compared to the VAT.

Given the generally mild weather gas/electric could be as low as $50 during the spring and fall, and $100 during the winter and summer. Possibly more during the summer if you find that you wilt when the temperature rises above 80 degrees (27) and crank up the air conditioner. In my rental experiences I never had to pay for water, sewer, and garbage but that may be changing. If so, it shouldn't be more than $50/month. Cable TV, phone, and internet are what you make of it. You can go cheap and pay $100/month, or go expensive and pay $200/month.

If you end up buying a car, the older it is the less tax you will pay. If it's model year 1998 or older the yearly fees will be less than $100. The price of gas will be a real eye opener. You will be shocked at how marvelously low they are - by UK standards. But then the distances Americans have to travel seem to be so much greater. However, the car insurance could be expensive. I've read elsewhere on this site where people moving to the US have asked their existing insurance carrier to write a letter about their driving record to their prospective US insurance carrier so they can get credit for their good driving record.

Still, you're going to have to furnish an apartment, and that will cost money, so where some of your expenses may be lower than you anticipated, having to buy "stuff" could eat up a lot of your earnings the first few months.

Enjoy the sun.