Moving from the UK to DC need advice on taxes (sales, apartment)

[Brooksy]

Hello

My husband I will shortly be moving to DC from the UK; the job he is in now is transferring him there and he is in the process of agreeing his package. To help with this we are trying to work out what our outgoings will be so firstly I am trying to work out what taxes he will pay........
but its a little confusing!

We will be living and working in DC ... and I know he will pay individual income tax and I have the rates for that. Is that the same as federal tax? Or is that seperate? and where can I find info on that?

Also, does everyone pay social security tax?? What exactly is this for ... as I know his company will pay for both of our private medical/dental care etc so do we still need to pay social security tax?

We will be living in a rented apartment - is there any property/state rates you pay?? In the UK we pay council tax to our local county; is there something similar we would have to pay in DC?

I know about sales tax.... are there any others i am missing??

Thanks in advance for any help on this - bills what a pain eh?!!

Cheers
Amy

[MadManofBethesda]

Originally Posted by Brooksy

Hello

My husband I will shortly be moving to DC from the UK; the job he is in now is transferring him there and he is in the process of agreeing his package. To help with this we are trying to work out what our outgoings will be so firstly I am trying to work out what taxes he will pay........
but its a little confusing!

We will be living and working in DC ... and I know he will pay individual income tax and I have the rates for that. Is that the same as federal tax? Or is that seperate? and where can I find info on that?

Also, does everyone pay social security tax?? What exactly is this for ... as I know his company will pay for both of our private medical/dental care etc so do we still need to pay social security tax?

We will be living in a rented apartment - is there any property/state rates you pay?? In the UK we pay council tax to our local county; is there something similar we would have to pay in DC?

I know about sales tax.... are there any others i am missing??

Thanks in advance for any help on this - bills what a pain eh?!!

Cheers
Amy

I am by no means an expert in this area, but I believe that I can help you with a couple of links that will point you in the right direction.

Living and working in D.C. will entail paying income tax to both the federal government and the District of Columbia. The federal income tax rates can be much higher than the D.C. tax rates, depending upon your husband's income. They tax rates can be found on the website for the Internal Revenue Service (IRS) at Internal Revenue Service. The IRS website has an online calculator which will allow you to figure out approximately how much money will be withheld from your husband's paycheck each payday for income tax purposes: 2009 Withholding Calculator

The IRS also collects Social Security taxes and determines who must pay them. I believe that with few exceptions, foreign workers are required to pay Social Security taxes for all work performed in the United States. Here is a link to some specific info on that from the IRS:

Aliens Employed in the U.S. – Social Security Taxes (http://www.irs.gov/businesses/small/international/article/0,,id=131635,00.html - broken link)

The Social Security Administration website also has info for foreign workers on how to acquire a Social Security number:

Foreign Workers and Social Security Numbers

With respect to renting an apartment in D.C., you will not be responsible for any property taxes. Such taxes are only paid by the owners of property. In addition to your rent, you may or may not have to pay separate charges for utilities. In some cases, some or all of the utilities are included in the rent, but more often, you will be responsible for acquiring your utilities and paying for them separately.

I hope this information has been helpful.

[PenguinSix]

You might want to check out the British Expats site as they have folks who have dealt with all of this, including bits about keeping your UK Pension scheme and NHS coverage.

USA : British Expat Discussion Forum

Basically there will be:
Federal Income tax
State (DC) Income tax
Social Security (think PAYE-like expenses)
Sale tax you pay on all purchases
No VAT though

If you purchase a house, you will pay property tax based on its assessed value. If you rent, this tax is hidden into your rent and you won't have to pay it.

Depending on which place you live, you'll also have gas, electric, phone, cable (or satellite tv) and Internet bills. Some places might also charge for garbage collection (if you live in an apartment building, perhaps) or some condo maintenance fees if you live in a flat/apartment.

But there are many more things you should prepare, especially for health insurance coverage. Do not think it's 'whatever I need whenever I need it' as most insurance plans have things like premiums (monthly amount you pay) and co-pays (amount you pay for each doctor visit/drug store visit) and deductibles (amount you pay annually out of pocket before the insurance kicks in). You'll need to read the fine print and talk to the HR folks in detail about your plan and what it does (and does not) cover.

For example, one thing you might need it 'proof of coverage' under the NHS for your husband's new health insurance scheme to enable coverage of certain things. This can be a bit of pain to get from your GP (it depends on their mood usually). There are some other nuggets you might get from that site which will help ease your transition.