new immigrant with stock and bonds? how to pay tax? (insurance, retirement plan)

[cheapcharly]

hi all.

ok I m a new immigrant in the USA from Switzerland and i would like to know the best way to reduce my taxes in the USA. i m actually resident in California.

actually I have around 300k swiss francs invested in stock and bonds (55%/45%).and i have 30k $ in USA in a long term saving account with no much interest.

i think for 2013 this will generate over 7 or 10 percent interest. 30000$if lucky. in 2011 I lost around 7%.

I have not said anything to my bank yet. they don't know I m a new resident in the USA. i m not working actually.

i don't know how the system really work in the USA with your 401 thing.

i heard if you invest in a 401 k you don't pay tax.
I think i should talk to my bank, no? maybe they can get some opportunities of placement for me.

I don't want be in trouble with your irs next year and I want stay smart and play with your tax system than being beaten up and sent to jail...
i think IRS will go easy on me as new resident as long I inform them...

i want keep my swiss money in Switzerland... my $ in USA.


should I take my residence to Texas? i m thinking to move there soon.


any advices?


regards.

[crescent22]

You can only put wages or $5500 outside of wages into IRAs, so not much there to do if you aren't working. If you run your own business, you can contribute to a SEP IRA.

If all you have is 30k in dividends and interest, then you won't pay much, 10-15% on Ordinary income (which is what dividends and interest is down there) at that level. At $34k of taxable income, the marginal rate jumps to 25%. If you start garnering wages, then it will push your dividend/interest tax rate into the 25% zone.

[andywire]

When Obama comes knocking on your door, his thugs will proceed to hold you by your ankles as they shake all the loose change from your pockets. Of course, this is just the beginning. After snatching your wallet, they'll begin withdrawing all the funds from your debit card, while making various frivolous charges to your credit card(s). If they still are not satisfied, they'll probably jack your ride and do donuts in your front lawn. To place a ribbon on this exchange, he'll flip you the bird and run your mailbox over.

Unfortunately, if you have money, you are basically a criminal as far as Obama is concerned. Watch yourself here in the states. Why would you leave Switzerland?

[cheapcharly]

switzerland has no interesting jobs and life is boring with long winters. and tax are pretty much the same but life is very expensive in switzerland... double than usa generally. rent, food, healthcare hurt us. for one person count 2000$ for basic... with no tv, internet, car...

i find everything in USA is half cheaper and as I m not a work alcoholic, i prefer to live well in a country where I don't need to work my ass off to live well. my interest will not double because i m in switzerland... better to live in a country where you have a good job and where you can still save some money.

if usa tries to struggle me and put ridiculous tax on me, i will surrender my green card and take residence in asia which i like very much. healthcare should cost me around 60$ a month and I can live very well for 500$/month . i can still work internationally except usa.

I have heard Singapore has no much tax. I could just take a mail box there.

but if i pay 15 percent only in the usa on my interest I should be ok.
after deduction of 10000, i think i will pay tax on 20k $.

[oaktonite]

For the record, taxes the past few years have been lower than at any point in 60 years -- since before the Korean War.

[ukrkoz]

You bank will send you a little form, whatever the number on it is,1099, I think, that will show how much interest you earned off your savings in year 2013. You will receive it around January or so. Same information will be furnished to IRS, so you will need to declare that $$ value as income to IRS.
Not sure how you are intending to live and not to work, even in California. Become a hippie maybe and grow weeds? As with $30 000 in savings, you will not qualify for public assistance. Got to buy food, pay rent, and have some health insurance one way or another, even in this country of milk and honey.
I have heard something about off shore investments? Or you made an honest error and you do not have those, right? That was just a scholastic conversation, right? As otherwise, Mr IRS will charge you hefty for those investments. I have several international stocks in my IRA, and every time dividends are charged tax instantly. So keep your mouth shut about those, and make sure you receive NO statements mailed to you here. Have a friend forward mail onto you privately.
401K is retirement plan arranged for you by your employer. But as you do not work... That's taken care of.
You can set $$ into IRA, but you are capped at $5500 a year, or they will charge you 20% fine for over investing.
Instead of sticking your $$ into a bank here, you should have brought nice wand of 100$ bills, dug a little hole under s tree somewhere, and kept them there in a solid jar with tight lid. Entire country is one big spying on you computer, counting your every penny. Too late now.

[Curmudgeon]

Originally Posted by cheapcharly

hi all.

ok I m a new immigrant in the USA from Switzerland and i would like to know the best way to reduce my taxes in the USA. i m actually resident in California.

actually I have around 300k swiss francs invested in stock and bonds (55%/45%).and i have 30k $ in USA in a long term saving account with no much interest.

i think for 2013 this will generate over 7 or 10 percent interest. 30000$if lucky. in 2011 I lost around 7%.

I have not said anything to my bank yet. they don't know I m a new resident in the USA. i m not working actually.

i don't know how the system really work in the USA with your 401 thing.

i heard if you invest in a 401 k you don't pay tax.
I think i should talk to my bank, no? maybe they can get some opportunities of placement for me.

I don't want be in trouble with your irs next year and I want stay smart and play with your tax system than being beaten up and sent to jail...
i think IRS will go easy on me as new resident as long I inform them...

i want keep my swiss money in Switzerland... my $ in USA.


should I take my residence to Texas? i m thinking to move there soon.


any advices?


regards.

Yes. Go back to from whence you came. Just arrived and already looking for ways to stiff the IRS if possible. Commendable - NOT!

I'd mch prefer people who are grateful to the tax-supported process that permitted them to be here.

[bale002]

Originally Posted by cheapcharly

hi all.

ok I m a new immigrant in the USA from Switzerland and i would like to know the best way to reduce my taxes in the USA. i m actually resident in California.

actually I have around 300k swiss francs invested in stock and bonds (55%/45%).and i have 30k $ in USA in a long term saving account with no much interest.

i think for 2013 this will generate over 7 or 10 percent interest. 30000$if lucky. in 2011 I lost around 7%.

I have not said anything to my bank yet. they don't know I m a new resident in the USA. i m not working actually.

i don't know how the system really work in the USA with your 401 thing.

i heard if you invest in a 401 k you don't pay tax.
I think i should talk to my bank, no? maybe they can get some opportunities of placement for me.

I don't want be in trouble with your irs next year and I want stay smart and play with your tax system than being beaten up and sent to jail...
i think IRS will go easy on me as new resident as long I inform them...

i want keep my swiss money in Switzerland... my $ in USA.


should I take my residence to Texas? i m thinking to move there soon.


any advices?


regards.

As a US resident, you must report your worldwide income to the IRS, not necessarily pay taxes on it, but report it, then follow the tax rules for both countries, including all allowable deductions open to everybody, and of the bilateral tax treaty.

Normally you can put only active income, wages from employment or income self-employment, into a tax-deferred account such as an IRA or 401(k), not passive income from financial investments.

Otherwise, the only way to avoid income tax is to invest in federally tax free municipal bonds, and move to a state with no state income tax such as Texas or Florida, and rent a place to live, not buy, to save also on property tax.

In any case, the average effective federal tax rate in the US is 17%, if you pay more than that, then you are doing something wrong.

Good Luck!

[cheapcharly]

thank you all.

another question.

my stock have lost of its value these last 3 years due to the crisis. at some point I have lost 12%

now it s better. but the bank says I have got +12% in one year when in fact I got only 3 or 4 percent increase after 3 years. resulting i didn't lose anything, the bank just get the money back I have lost.

so should I pay tax on these wonderful 12%? because in this case it doesn't make sense as I don't make 12%. i still make nothing... or very close of 0 percent.. if i had kept my money under my pillow, it would have been the same...

[Strate L O S S]

go to an accountant