Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Explain US (California) taxes please!

Explain US (California) taxes please!

Old Feb 6th 2011, 1:45 pm
  #1  
Just Joined
Thread Starter
 
Joined: Feb 2011
Posts: 10
MillyBean is an unknown quantity at this point
Default Explain US (California) taxes please!

My first post!!

I'm trying to figure out how much tax will be deducted from my husband's gross pay (ie what will our net income be?) in the state of California

I've googled and found some online calculators but as far as I can tell there will be 3 main deductions from the gross pay. 1.federal tax 2.state tax 3. medicare. but there are credits we can claim and I'm not sure how these work ( we've 3 kids)

So my question - what would be the ESTIMATED % deductions to gross pay based on 3 kids, wife not working and no property taxes (at first we will rent)

I'm trying to do an early budget on our move - I work here but will not in the US so I need to see how that will effect our household income!!

Many thanks in advance
MillyBean is offline  
Old Feb 6th 2011, 2:54 pm
  #2  
Account Closed
 
Joined: Aug 2002
Location: Kentucky
Posts: 38,867
ian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond reputeian-mstm has a reputation beyond repute
Default Re: Explain US (California) taxes please!

Originally Posted by MillyBean View Post
So my question - what would be the ESTIMATED % deductions to gross pay based on 3 kids, wife not working and no property taxes (at first we will rent)
Generally speaking, expect to take home 65% of your gross pay - with only minor variations, this is true pretty much across the entire US. It will certainly serve your "early budget" situation.

Ian
ian-mstm is offline  
Old Feb 6th 2011, 2:59 pm
  #3  
Just Joined
Thread Starter
 
Joined: Feb 2011
Posts: 10
MillyBean is an unknown quantity at this point
Default Re: Explain US (California) taxes please!

Thanks Ian
MillyBean is offline  
Old Feb 6th 2011, 3:22 pm
  #4  
BE Enthusiast
 
Joined: Nov 2007
Location: Carson City, NV
Posts: 789
TimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of light
Default Re: Explain US (California) taxes please!

Originally Posted by MillyBean View Post
My first post!!
I've googled and found some online calculators but as far as I can tell there will be 3 main deductions from the gross pay. 1.federal tax 2.state tax 3. medicare. but there are credits we can claim and I'm not sure how these work ( we've 3 kids)
The form W-4 comes with a worksheet that should allow you to work out the credits you can claim.
TimNiceBut is offline  
Old Feb 6th 2011, 4:12 pm
  #5  
BE Forum Addict
 
Joined: Mar 2008
Location: Santa Cruz, CA
Posts: 4,896
md95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond repute
Default Re: Explain US (California) taxes please!

Originally Posted by TimNiceBut View Post
The form W-4 comes with a worksheet that should allow you to work out the credits you can claim.
Yes, but at this stage the W4 will probably just leave the OP even more confused than they are now (after almost 25 years here I know that is certainly still confuses me ...)

Last edited by md95065; Feb 6th 2011 at 4:29 pm.
md95065 is offline  
Old Feb 6th 2011, 4:43 pm
  #6  
Democracy advocate
 
Cape Blue's Avatar
 
Joined: Mar 2006
Posts: 11,880
Cape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond reputeCape Blue has a reputation beyond repute
Default Re: Explain US (California) taxes please!

I live in CA and have zero deductions (no kids, no mortgage) and find my take-home kicks around the 63-65% (before health ins, 401k deductions etc)
Cape Blue is offline  
Old Feb 6th 2011, 9:45 pm
  #7  
Just Joined
Thread Starter
 
Joined: Feb 2011
Posts: 10
MillyBean is an unknown quantity at this point
Default Re: Explain US (California) taxes please!

Hi

I've come across the w-4 form on my searches before.

I am just looking for a guide on % take home pay and I guessed the kids would impact my husbands taxes/credits but couldn't figure the credits out.

many thanks for taking the time to reply it gives me a rough idea what to expect.
MillyBean is offline  
Old Feb 6th 2011, 11:50 pm
  #8  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,729
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Explain US (California) taxes please!

Also figure out what will be taken out pre tax for 401K pension and contribution towards medical insurance.

Also depending on the state and where in the state, there might be county or city taxes too.
Bob is offline  
Old Feb 7th 2011, 1:20 am
  #9  
BE Forum Addict
 
E3only's Avatar
 
Joined: Jul 2008
Location: East Bay Area
Posts: 2,192
E3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond reputeE3only has a reputation beyond repute
Default Re: Explain US (California) taxes please!

I pay 6% 401K and 290 a month pre tax medical insurance. I plan to flie married joint (wife does not work). That being said I am taking 68% of gross, home AFTER the 401k and medical insurance.
E3only is offline  
Old Feb 7th 2011, 2:47 am
  #10  
MODERATOR
 
penguinsix's Avatar
 
Joined: Nov 2006
Location: Hong Kong, mostly.
Posts: 5,105
penguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond reputepenguinsix has a reputation beyond repute
Default Re: Explain US (California) taxes please!

It's worth mentioning some terms of art here which may help you in your Google searches for more information:

Tax "deduction" is an amount that reduces your overall taxable income.
Tax "credit" is a dollar-for-dollar reduction in the amount of tax you owe.

Children are generally a "deduction" and not a tax credit. You can get a credit for certain expenses (including some child care if you meet some requirements) but generally dependents like kids are deductions.

Here's a list of some of the more popular ones:

http://taxes.about.com/od/deductions...ns_Credits.htm
penguinsix is offline  
Old Feb 7th 2011, 7:46 pm
  #11  
Just Joined
Thread Starter
 
Joined: Feb 2011
Posts: 10
MillyBean is an unknown quantity at this point
Default Re: Explain US (California) taxes please!

Bob - city and county taxes how many taxes are there to pay??

E3only - thanks for that info - hadn't realised the med ins was so much per month I will calculate on 68% as we will be in a simliar situation - me not working. any other deductions (thanks penguinsix) for the kids will be a bonus on the take home pay

thanks everyone for the info
MillyBean is offline  
Old Feb 7th 2011, 7:51 pm
  #12  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 82,149
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: Explain US (California) taxes please!

Originally Posted by MillyBean View Post
Bob - city and county taxes how many taxes are there to pay??

E3only - thanks for that info - hadn't realised the med ins was so much per month I will calculate on 68% as we will be in a simliar situation - me not working. any other deductions (thanks penguinsix) for the kids will be a bonus on the take home pay

thanks everyone for the info
If you buy your own home property taxes are pretty hefty depending on where you live.
Jerseygirl is offline  
Old Feb 7th 2011, 8:04 pm
  #13  
Lost in BE Cyberspace
 
Michael's Avatar
 
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Michael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond repute
Default Re: Explain US (California) taxes please!

Originally Posted by MillyBean View Post
Bob - city and county taxes how many taxes are there to pay??

E3only - thanks for that info - hadn't realised the med ins was so much per month I will calculate on 68% as we will be in a simliar situation - me not working. any other deductions (thanks penguinsix) for the kids will be a bonus on the take home pay

thanks everyone for the info
I don't know of any city or county in California that imposes an income tax. Usually the only tax imposed on the local level in California is property taxes (paid by the owner and not the renter) and possibly sales tax (8.25% by the state of California and up to 2% by local governments but no sales tax on food and some other items).
Michael is offline  
Old Feb 7th 2011, 8:20 pm
  #14  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 82,149
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: Explain US (California) taxes please!

Originally Posted by Michael View Post
I don't know of any city or county in California that imposes an income tax. Usually the only tax imposed on the local level in California is property taxes (paid by the owner and not the renter) and possibly sales tax (8.25% by the state of California and up to 2% by local governments but no sales tax on food and some other items).
Bills such as phone bills are loaded with taxes and fees...or at least they are in NJ. The monthly bill is nothing like what the provider quotes you.
Jerseygirl is offline  
Old Feb 7th 2011, 8:25 pm
  #15  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 43,743
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default Re: Explain US (California) taxes please!

That is what the HR department is for, honestly, it is. I often had to ask them to give me the calculations of what my take home pay would be after taxes and X amount of contributions to my 401K and Flex Spending Plan.

I did this so that I could determine where the tax break comes in for the 401K contribution. In some cases if you increase by $100 a paycheck you might well come home with more spendable money then if the contribution were $100 less.
Rete is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.