Taxes
 

Hi there,

Sorry if this is the wrong forum! I was wondering if anyone could help me out...I'm trying to work out how little money I'll be left with at the end of each working month when I'm in the US ;)

I'll be on $30,000 for a Virginia-based employer, and will be renting in either Virginia or DC. I'll be on a H1-B visa.

Now, I was hopeless at maths at school, so I would really appreicate it if anyone who can tell me the total tax (once all deductions are factored in) is that I'm likely to end up paying.

I don't mind if it's a rough figure, just something to give me an idea...

Thanks!

Re: Taxes
 

I think that may be somewhat difficult.

From a basic point of view I do not think there is that much difference. You might pay less up front but add back in Medical costs and you get to a similar position in the UK.

Now there are many more ways to reduce your tax, for instance you can get a credit on all your Mortgage interest, but you may not be in a position to maximise these.

Most living costs are less, Car Insurance may be higher. All depends on what you are comparing it with.

Re: Taxes
 

Info here should allow you to make a reasonable estimate. Subtract deuctions from your gross, then use the tables.

Re: Taxes
 

Thanks, that is a big help!

Does that mean a $30,000 salary gets taxed a lump sum of $4,000 and then extra charges of 25% for every dollar of the wage that's over $29,050?

Re: Taxes
 

I'll assume you are single, no dependents, just claim standard allowances, and earn 30,000 for 2004. So, grossly simplified…

Salary: 30,000
less personal exemption of $3,100
less standard deduction of $4,850
equals taxable income of $ 22,050

Therefore, your tax from the single table is $715 plus 15% of any amount over $7,150
Which equals 715 + ((22,050 - 7,150) * 0.15)
Which equals $2950 tax payable on $30,000 salary.

However, you aren’t going to start paying tax at the 25% rate until you reach a salary of 29050 plus your personal exemption plus your standard deduction, which equals $37,000

Sorry -- redone my maths before someone else catches it! I forgot to subtract the 10% tax bit. Note to self: don't do maths quick when dinner's on the table.

Re: Taxes
 

Just be aware that $30,000 in that area is not much, don't go mad until you really know how much you will have.

Re: Taxes
 

Too true. Probably in all areas except Arkansas I would think. Liveable, but only just.

Re: Taxes
 

I was going to say something along those lines, but couldn't think how to put it.

I'm somewhat surprised that you could be coming over to do a job that qualifies for an H1-B visa, but only pays $30,000. Is that really what a US employee doing the job would be paid? May I ask what the job is?

There are employers out there who will take advantage of foreign workers (though usually not Europeans) who desperately want to work in the US, and will pay them less than they would a US worker. The H1-B system is supposed to discourage that by requiring the employer to show that they are paying the foreign worker a competitive wage. The thing is, most jobs that a company could apply for an H1-B for, such as specialised engineers, pay high because there is a shortage of qualified US workers to do them... and hence the job qualifies for an H1-B. Given that $30,000 is a relatively low wage anywhere in the US, I'm rather surprised that that's all you're expecting to be paid on a specialist visa.

But I could be talking complete crap, and if I am, I'm sure there are people who will be more than happy to point it out within seconds of me posting this reply :)

Re: Taxes
 

I'm pretty sure that renting in DC or VA will be very expensive, as much if not more than parts of suburban London (UK). This will eat into your disposable income as will travel costs. I hope you're not anticipating on driving to work. It will certainly be a stressful drive to/from work and probably takes years off your life over time!



NC Penguin