Pulaski

$14k income and (only) 60 years old seems to be a long way short of being dependant - start thinking of care, support, and attention that a child requires and you'll be in the right ballpark.

nun

First a little slap on the wrist. Anyone moving across borders, and particularly if it involves the USA, should fully understand the health care, tax and financial implications to avoid potentially very nasty problems. Your immediate issues are taxes and healthcare. The taxes won't be too bad given your income sources, but healthcare could be a big issue. You will have to buy insurance or get on a relatives plan if you can. The premiums will probably be quite high given your age. I would look at getting on Medicaid in Virginia and look at the Government ACA plans available if you don't qualify for Medicaid. Longer term when you turn 65 you will be able to buy Medicare at the full premium, which is about $6000/year. How much have you budgeted fro healthcare costs?

I would file as a part year resident in the US and Virginia from the day you arrived in the US. You should also have files a P85 with HMRC to tell them you are lo longer a UK resident and file a UK self assessment (if necessary) for the time you were in the UK.

More that $10k in UK savings accounts means you must file an FBAR with the US Treasury. You will also have to pay US tax on interest on your savings accounts, but you can claim your UK personal allowance and tax relief using form R43. If you have not sold the house and are now US resident you will have to deal with capital gains in both the US and the UK if you sell and also tax on rental income in both places if you rent it out.

You might well fall below the income level required to file......however, I would still get your taxes done so you can see where you stand and the issues yiou have to deal with next year.

You are a US resident from the day you arrived if you came in sponsored by a relative on a green card.

That's a very open ended question. But if that money is from a UK Government pension and you are not a US citizen it will be taxed in the UK and NOT at the US federal level. You should check whether it is taxable by Virginia. Rental income, interest, capital gains will all be taxable in the US and if they are UK sourced then HMRC can also tax them and you will have to get credit in the UK for any US tax paid. However, your income might be low enough to avoid tax and there are ways to minimize the amount you pay......so some planning would be a good thing to do.

Yes tell HMRC about your move by filing a P85. Your UK personal allowance could well mean that you pay little to no tax in the UK (and on the US side of things too) so you need to file an R43 to claim your UK personal allowance as a non-resident.

The US and UK tax years do not coincide. It's a continuing issue to keep track of things, you just have to deal with it unless you are a small business and then you can file using a predefined fiscal year.

The treaty can be tricky and is actually only relevant is a few situations because US domestic law trumps it. If you are unsure of things write down your questions and get more help. Define your questions tightly and only as one at a time.

The most immediate issue for the OP is health insurance and its cost.

Lab_10

Yes, you are right, I am living with my daughter. I won't be qualified as depended. To be honest I rather to pay more tax then to meet all the requirement to be qualified.
I will defenetely look for a part-time job. I am thinking about babysitting, I love children. I used to work at school long time ago (not in the UK, in case you are wondering how I manage to do that with my English).
I have to get my own Health Insurance. Surprisinly I sleep far better here without it then I did in Scotland knowing if I have a problem doctor will see me for free maybe in 3 months time but it is another matter.

Lab_10

Oh my goodness! I am so grateful for the last post. It seems like things are getting more clear and my panic recedes. I will start to do a research about Medicaid.
I guess I deserved a little slap on the wrist. I was too excited about joining my children here. I am not sure what I could change, maybe only get reed of savings? I won't gain anything with sale of the house. Actually quite opposite I will loose.
I keep saying Thanks and I mean it.

morpeth

I don't think you deserve a slap on the wrist at all. family comes first.

I would recommend checking with CPA about dependent status, cant hurt.

Looking after children great idea, and many middle class families would love someone from Britain to babysit their children. Daycare can be quite expensive in America.

While I am not suggesting since not your own house, looking after say 3 children after school until parents get off work could easily be $700 to $1,200 per month depending on local situation.

Obamacare can be complicated to understand but even with pension income included could be affordable for catastrophic costs ( i.e. any hospital stay), though it is possible they say you make too little based on pension then they try to put you on Medicaid- which I am not sure as new resident you qualify for ( don't some visas state for 5 years no public benefits- I don't know answer). But Obamacare at least in state I was in, could base rate on projected income to "get in the door ". One of my children switched to Obamacare and quite happy with it, but each state very different,

Rete

We must agree to disagree then. End of narrative.

I wish the OP well and that she can work things out. Apparently with a $14K annual income she might well be eligible for free Medicaid. I know that my neighbor isn't on her $17K social security benefits before deductions and that is before any adjustment to gross income. As per the agencies here in MS.

nun

Yes family comes first, but a little planning prior to the move would have lessened the OP's worries and avoided a dangerous period of being in the US without health insurance. I would not recommend that anyone go through the relative sponsored immigration process without financial and healthcare planning, that's just common sense.

Selling the house and researching healthcare would have been a good idea. In all this we are assuming the OP has "scrubbed" her finances so that there are no US issues like UK investments funds held in things like ISAs, but as she only mentions a savings account I assume that its not a problem.

I would advise her to apply asap to Virginia to get what benefits she can. She probably won't qualify for Medicaid....unless she is in some special category that gets her around the 5 year waiting period of green card holders....but her low income might get her a nice ACA subsidy and maybe some other benefits too. She needs to get healthcare asap.She should try to get some Medicare credits by working and paying FICA so that after 10 years she can get Medicare Part A at no charge.

nun

When on SS (if you don't take it early), health care is provided through Medicare.....if you have low income you can still qualify for certain Medicaid benefits.

Nutmegger

Isn't the cost of Medicare just deducted at source from the social security payment, as opposed to being "provided"?

Rete

Yes, that is known. She is 69 so not early SS and has Medicare but cannot afford the copay on her meds. She borrows from us constantly it is draining on our finances as she continually injuries herself requires hospitalization. Right now she has a broken knee cap and without her meds she claims the pain is too bad to live with. The doctors won't do surgery until the swelling goes down and it won't go down because she lives alone and cannot afford outside help so must fend for herself. By the time she pays her mortgage, insurance, bills she is left with $300 a month for meds and food. She called about applying for Medicaid and was told she brings in too much. They did not take into account her mortgage, etc.

So she lives on the kindness of strangers.

Rete

Yes, it is deducted from your social security benefit before they issue you direct deposit to your bank account.

Lab_10

I have spent most of the day searching for the Heath insurance. I found out I am not eligible for Medicaid but I can buy Health insurance trough HealthCare.gov. I need to decide which one is a best for me. But also I need to study how it works. They say I eligible for a tax credit $630 each month. Will they take it of something in my tax return calculation?
I have to send them copy of my visa and prove of my income wich I haven't got with me. I will be going back to UK end of January and then I can send it.
I think I will get a cheapest monthly cost with a big out-of-pocket cost. Hopefully I won't need to go to the doctors next year and after that I will have a better idea.
Thank you all of you for your opinions, advises and good wishes.
Sorry to hear about poor woman who is suffering alone.

Pulaski

Insurance with a "big out of pocket cost" usually known as "high deductible insurance" works very well for many people of working age and in good - fair health, and my wife and I have had HD insurance for the past eight years. However, part of the reason it is attractive are the tax benefits, where you can reduce your income by putting some money in a tax-advantaged account, however in your circumstances it is much more of a gamble, and with low income and little tax to pay, there is little benefit in putting money into a Health Savings Account (HSA) even if you had the money to spare to fund it with.

That said, paying high premiums ane then not being ill does seem like flushing money down the toilet

kodokan

Yes, it will be balanced through the tax system. Either the subsidy will be sent each month (direct to the insurance company) and you pay your share, or you pay the entire monthly premium but then get a refund when you file your tax return in early 2018. Financially, it's the same either way, but probably better for cashflow if you can get the subsidy in place as soon as possible.

Don't leave applying until you have your paperwork. There is a limited open enrollment period for being able to sign up for 2017, so make sure you get insured and then follow up with income verification afterwards. This may mean you have to pay the premiums in full for a month or two before they can get your subsidy in place, but it'll be refunded next year via your tax return if your income is the same as your estimate. But get something in place otherwise you'll not only have no health insurance for 2017 should you fall ill, you'll also have to pay a fine.

PetrifiedExPat

Correct me if I'm wrong, but doesn't moving to the USA, at any point of the year, count as exemption from the open enrollment period. Therefore, once the OP lands, she can sign up immediately, any month of the year?