annabel2010

Hi - i'm trying to work out how much my Net pay will be when i move from the UK to the US next month - our companies outsourced payroll provider is being less then helpful!

I can use an online calculator to work out the number but would appreciate it if anyone can confirm my interpretation of the W4 filing status/withholding rules etc. as this obviously impacts the numbers.

Details are:

State - TX
Married + 5 yr old daughter
frequent traveler to the us for work, spending 33 days there this year to date

Q1: what is my alien status – I have assumed resident alien as i pass the "

Substantial Presence Test"
Q2: What should my filing status be - single, married, HoHH etc. – I have assumed married filing separately
Q3: What are the # of federal allowances I can record – I have assumed 1
Q4: should any other federal withholding be recorded – I have assumed no

thanks for any feedback.

NatashaB

Will your spouse be working? Will you be paying for childcare in order to claim the childcare tax credit?

Husband and I both work now, we file as married but i have my witholdings set as a single person since we ended up owing one year. Your tax will be a little more complicated this year since you're only filing for a partial year, will your co pay for a tax advisor to do this year's return?

For future years you'll be considered a resident alien. Not sure about this year though since you haven't spent the whole year in the US.

annabel2010

>Will your spouse be working?

Not at first, perhaps later but no firm plans.

>Will you be paying for childcare in order to claim the childcare tax credit?

No

>will your co pay for a tax advisor to do this year's return?

No

>For future years you'll be considered a resident alien. Not sure about this year though since you haven't spent the whole year in the US.

I'm assuming i will be a resident alien this year as i have spent more than 31 days in the USA this year already - Substantial Presence Test

Is the smart thing just to put 0 allowances down to start with and review at in the next fiscal year?

thanks for the feedback.

Pulaski

You haven't given us enough information to answer all your questions - will your husband be coming too? Generally speaking it is advantageous under almost all circumstances to file your taxes jointly with your spouse. ..... If he is remaining in the UK and working there filing jointly may be either impossible or not advantageous.

Noorah101

You ate trying to figure net income, but you've only asked about taxes. Also consider other payroll deductions, such as health insurance. Insurance premiums for s family of 3 could be high. Check to see how your employer handles that.

Rene

Noorah101

There are also things like SS withholding, state tax withholding, and 401K contributions (if you choose).

Rene

Pulaski

That's a whole separate discussion, and could be quite low too, depending on your needs and choices. We pay about $155/mth for high deductible insurance for a family of three, and feel very well protected. We have also accumulated a substantial five figure tax free medical "rainy day fund" in tax free HSA accounts without ever deducting more from our salaries than we used to with "regular" health insurance.
She's moving to Texas.

Noorah101

Sorry, I was just trying to point out other deductions from her paycheck that she might not have been aware of. I did not know Texas had no state tax withheld.

Rene

Pulaski

Texas is famous for having no state income tax. .... They just screw you on you property tax instead. - Having no state income tax sounds good, but if my house were in Texas it would be taxed at about what I currently pay in property and state income tax combined.