Take home pay question
Hi all,
This is my first post so please be gentle :) and apologies if im in the wrong section Very quick question , I'm looking at relocating to the west coast in January with my current employer , I would be moving over on an e2 employe visa with my wife and 2 year old daughter and am looking for places to rent obviously where I can afford is going to be dependent on take home salary and I have a rough idea but my question is what would my status be when using the salary take home calculators as I'm getting mixed information from our HR people and other staff I know from the uk who have moved over I presumed it would be married but am being told by hr it would be single and there is around $600 / $700 dollars a month difference Any pointers appreciated FYI were looking at Sacramento / Denver or Portland and the move would be January (end of the month) Thanks in advance :) |
Re: Take home pay question
If you are married you have to file as married but can then chose between filing jointly with your spouse or individually. For most people jointly is more tax efficient.
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Re: Take home pay question
Take home tax is hard because you may or may not be liable for State and city (potentially where you work and live) as well as things like health insurance, dental insurance, vision insurance, disability insurance and other miscellaneous items that may come out of your check pre or post tax. Also, depending on what sort of tax write off items you have (mortgage interest, number of kids, property tax and a whole host of other things) you can pay less tax throughout the year. Basically it will be up to you to figure out what you want to pay in federal and maybe state tax, based on your witholding number, and then either pay extra with your tax return or get a refund for overpayment. It's not easy and kind of trial and error initially. Once you get a few full paychecks you can start running things through tax software like TurboTax to get an idea of where you are.
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Re: Take home pay question
Perfect thanks :)
Not sure why my HR people in the US are saying single (unless my wife has told them something I don't know yet) Presumable when they pay me each month they will enter something on the system that says I am married and its all done via payroll (adp I think they use) |
Re: Take home pay question
You should be able to get a decently accurate calculation, including state taxes, using the calculator at Paycheck Calculators | Online Payroll Calculators | Paycheck City .
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Re: Take home pay question
Sounds like it would just be easier to relocate to Nevada :)
Thanks for the reply's |
Re: Take home pay question
Originally Posted by rpjs
(Post 11377938)
If you are married you have to file as married...
Unless I'm mistaken, this is what the guy's HR department is suggesting. Ian |
Re: Take home pay question
Originally Posted by ian-mstm
(Post 11377965)
For tax returns, yes... but not for source deductions on payroll. I'm married, but claim the single rate on my payroll deductions because they take out more taxes at the source and then I get a nice refund after I file taxes.
Unless I'm mistaken, this is what the guy's HR department is suggesting. Ian Thanks for the reply's I guess if I base it on single at least it wont be any lower ! |
Re: Take home pay question
Originally Posted by Jgalla5400
(Post 11377947)
Not sure why my HR people in the US are saying single (unless my wife has told them something I don't know yet)
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Re: Take home pay question
I will be (as far as I am aware) going on the E2 employee visa for 5 years at least that's what we have done for others and seems common practice with the company I work for
What you said makes sense about the Non-Resident / Resident stuff I think the first year will be the one when I don't fall into resident status and will take the tax hit and hopefully as Ian said get a nice refund upon filling returns :) |
Re: Take home pay question
Originally Posted by ian-mstm
(Post 11377965)
...... I'm married, but claim the single rate on my payroll deductions because they take out more taxes at the source and then I get a nice refund after I file taxes. ....
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Re: Take home pay question
Originally Posted by ian-mstm
(Post 11377965)
For tax returns, yes... but not for source deductions on payroll. I'm married, but claim the single rate on my payroll deductions because they take out more taxes at the source and then I get a nice refund after I file taxes.
Unless I'm mistaken, this is what the guy's HR department is suggesting. Ian |
Re: Take home pay question
Originally Posted by Jgalla5400
(Post 11377969)
That certainly explains it :thumbsup:
Thanks for the reply's I guess if I base it on single at least it wont be any lower ! http://www.irs.gov/pub/irs-pdf/fw4.pdf Then by April 15 of the following year, you file a tax return that ensures that you paid enough (or enables you to get some money back!). If your state has an income tax, there will be a commensurate form to complete for the state withholding. |
Re: Take home pay question
Originally Posted by Owen778
(Post 11378052)
My company's W2 (or W4? I always forget which is which) doesn't just let you choose between single and married, it has three options: single, married, or married but deduct at the single rate.
Ian |
Re: Take home pay question
Originally Posted by Jgalla5400
(Post 11378015)
I will be (as far as I am aware) going on the E2 employee visa for 5 years at least that's what we have done for others and seems common practice with the company I work for
What you said makes sense about the Non-Resident / Resident stuff I think the first year will be the one when I don't fall into resident status and will take the tax hit and hopefully as Ian said get a nice refund upon filling returns :) |
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