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Driving in the states and tax

Driving in the states and tax

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Old Mar 13th 2010, 2:41 pm
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Default Driving in the states and tax

Hi!

I am going to be moving to Houston on my own over the summer and have been looking at driving information. I am moving on a work visa (2yr contract) and i noticed on a few websites that it says i can use my UK license for a yr after arriving. Is this correct as i noticed a thread a while back where it said it can depend on your visa and how long you are intending on staying? Obviously after the yr i know i'd have to sort out a local license but wanted, if possible, to do that later on so i can concentrate on settling in and stuff first.

Also i have looked into tax on income and apart from federal tax is there anything else that comes out of your wage (not including pensions etc...) as i know Texas doesn't have a state income tax but wasn't sure if there was something similar to NI? I've searched on the internet and can't seem to see anything else but thought i'd check.

Thanks in advance for any help!
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Old Mar 13th 2010, 2:59 pm
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Default Re: Driving in the states and tax

You do not have a year to drive on your UK license. It is more like 30 days or such. Once you step foot into the US on a valid work visa and move into an apartment you are considered a resident of that state and as such must adhere to the regulation on residents transfer of driver's license.

As for taxes you will have deductions for federal income tax, social security tax, medicare tax, workman's compensation, plus whatever other employee paid benefits you opt for, i.e. healthcare insurance, life insurance, 401K, etc.

There are tonnes of posts about moving to Texas as it is a prime immigration point it seems. Search for them and read the wiki and see if there is anything available there for moving to Texas.
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Old Mar 13th 2010, 3:05 pm
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Default Re: Driving in the states and tax

That's great - thanks for the help. Yeah i wasn't too sure on the driving part as i know there have been comments saying both sides so cheers for that. I'll have another search around and see what i can find. So much to think about but definately looking forward to it.

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Old Mar 13th 2010, 3:56 pm
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Default Re: Driving in the states and tax

Originally Posted by Rete
You do not have a year to drive on your UK license. It is more like 30 days or such.
Texas is one of those states that does give you 12 months though.

The problem is, you'll never find anyone who will provide insurance cover for that length of time till you get a local license and the premiums would be stupidly expensive in the mean time.

Just get the license done asap, it's your main form of ID anyway and the test is a bit of a joke.
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Old Mar 13th 2010, 5:25 pm
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Default Re: Driving in the states and tax

bear in mind though that income tax is more than just at state level. Here in Ohio we have Federal (US wide) tax, Ohio State tax, Tax for the city we live in and tax for the city we work in - so 4 seperate tax returns. We have moved house in the middle of the tax year and also moved employment cities too so have had to prepare up to 6 returns one year.
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Old Mar 13th 2010, 6:32 pm
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Default Re: Driving in the states and tax

Social Security tax is 6.2% up to approximately the first $100K earned, and Medicare tax is 1.45% of all earned income. You pay those (total of 7.65% if earned income) whatever your status.

Also you will be paying for your health insurance (assuming you employer offers it) directly out of your paycheck. Expect at least $150 per paycheck, although that varies wildly depending on plans and how much the employer pays.

Pension plans etc are optional (if offered) and if you're only here for a couple of years they might not be worth your while anyway.

Like others have said, I'd just get that driving license as soon as possible. I've had licenses for two states, and both theory exams were about 40 short multiple choice questions (stopping distance, what does this sign mean, etc.) and pretty simple. For one state the driving exam was literally drive round the block, reverse into this car park, drive back to the test place. You'll have no problems passing it. You'll waste $1000+ a year if you insure your car using just your UK driving license.
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Old Mar 14th 2010, 12:37 am
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Default Re: Driving in the states and tax

Thanks so much for replies - i'll look to sort out license pretty soon after arriving then. I can't imagine living without a car for too long The wiki bits were very helpful (hadn't realised they were there).

Yep i've had a look at the tax bits again and think i've got my head around it now after the help on here so thank you.

Right, off to write some more 'to do' lists - they are much more fun than actually doing the stuff on them
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