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What taxes and other deductions can I expect

What taxes and other deductions can I expect

Old Jul 15th 2015, 3:56 pm
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Default What taxes and other deductions can I expect

I've been offered a $60k salary for a position in California. Before everyone jumps in with that's not a lot to live there, I want to know how much I can expect to be deducted. I have a wife and a young child, can I claim some money back for them. My wife will also be working.
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Old Jul 15th 2015, 4:20 pm
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Default Re: What taxes and other deductions can I expect

After deduction of state and federal income taxes and SSN contributions, and, I hope, your share of medical insurance, I would expect you to net around 85% of $60k, so just around $50k, maybe slightly over.

If your wife works then you would presumably have to pay for daycare for your child. That would start perhaps at around $500 for no-frills in-home daycare, and be well over $1,000 for care in a purpose built facility with professionally qualified staff. Some of the cost of daycare can reduce your taxes by arranging for some pre-tax money to be set aside to pay for daycare.

BTW do you have a visa to work in the US? Given your previous posts I am intrigued to hear what sort of visa you are getting that would also allow your wife to work.

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Old Jul 15th 2015, 5:31 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by Pulaski View Post

If your wife works then you would presumably have to pay for daycare for your child. That would start perhaps at around $500 for no-frills in-home daycare, and be well over $1,000 for care in a purpose built facility with professionally qualified staff. ...
If it's a big city, might want to double that.
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Old Jul 15th 2015, 5:44 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by Bob View Post
If it's a big city, might want to double that.
Agreed. Things are pretty low cost round here, but I was talking to my dentist this morning, who is paying $1,200/mth for daycare.
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Old Jul 15th 2015, 6:32 pm
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Default Re: What taxes and other deductions can I expect

I earn a little less than you would. I live in Arizona. Married, no kids, but have a mortgage.

Taxes take up about 12%. Medical/dental takes up another 12.5%. Yours of course could be different, but if you figure about 25% will go to taxes and medical, you are left with about $45,000 net income. Not much at all, for California living.

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Old Jul 15th 2015, 6:51 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by Noorah101 View Post
I earn a little less than you would. I live in Arizona. Married, no kids, but have a mortgage.

Taxes take up about 12%. Medical/dental takes up another 12.5%. Yours of course could be different, but if you figure about 25% will go to taxes and medical, you are left with about $45,000 net income. Not much at all, for California living. .....
You're right, I was overly generous above, and hadn't allowed for how much tax CA takes from such a low income. I did a rough calculation that federal and CA income tax alone will take $9,500 from gross income of $60,000, then SS taxes and medical insurance would be on top, so yes, probably around $45,000 net.

To Mark: Also bear in mind that if your wife gets a job her income will be added to yours for tax purposes i.e. taxed starting at your marginal tax rate and potentially even higher rates. If you're already covering the medical insurance then she won't have to fund any of that (in fact her employer may offer her cheaper insurance than yours, maybe), but she still might lose more in taxes than you do. ..... Of course it is all added in together in your joint tax return, so you don't ever see "he is taxed this, she is taxed that", but it is important to ensure that enough tax is being withheld (the US system does not work anywhere near as smoothly as British PAYE ) so that you don't get an ugly surprise when you do your year end tax calculation.

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Old Jul 15th 2015, 8:01 pm
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Default Re: What taxes and other deductions can I expect

Liability to tax and FICA will vary depending on the visa type as well.
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Old Jul 15th 2015, 8:06 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by Pulaski View Post
BTW do you have a visa to work in the US? Given your previous posts I am intrigued to hear what sort of visa you are getting that would also allow your wife to work.
Looks like the OP will be on a temporary J-1 if he's going over with VIF, so his wife would get a J-2 which I think allows work?
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Old Jul 15th 2015, 8:11 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by christmasoompa View Post
Looks like the OP will be on a temporary J-1 if he's going over with VIF, so his wife would get a J-2 which I think allows work?
He was last seen on BE looking for direct employment as a teacher in the US, not coming on a J-1-eligible exchange.
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Old Jul 15th 2015, 8:20 pm
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Default Re: What taxes and other deductions can I expect

I've been offered a teaching position. I've been told my wife can apply for a work visa. My daughter will be attending the school I teach in so no child care costs. Thanks for you reply. Do you know if I can move employer on a work visa? I was thinking of staying in California for a year or so then moving to Texas.
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Old Jul 15th 2015, 8:23 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by markhaggis View Post
I've been offered a teaching position. I've been told my wife can apply for a work visa. My daughter will be attending the school I teach in so no child care costs. Thanks for you reply. Do you know if I can move employer on a work visa? I was thinking of staying in California for a year or so then moving to Texas.
What visa is the school applying for? It's very doubtful that it will be one that allows your wife to work.

No you cannot change employers. The new employer would have to apply for a new visa for you. Again very doubtful it would be one allowing your wife to work.

Is it a private school...as state schools normally don't have the funds for visas?

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Old Jul 15th 2015, 8:25 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by markhaggis View Post
I've been offered a teaching position. I've been told my wife can apply for a work visa. My daughter will be attending the school I teach in so no child care costs. Thanks for you reply. Do you know if I can move employer on a work visa? I was thinking of staying in California for a year or so then moving to Texas.
What sort of "work visa" is it? That description is too vague to allow anyone to respond. ..... We need a letter and a number, and maybe another letter. H-1, L-1, H-2, O-1, J-1, and others allow, to varying degrees, you to work in the US.
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Old Jul 15th 2015, 8:27 pm
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Default Re: What taxes and other deductions can I expect

Its a private school. I'm not too sure on the visa but HB1 rings a bell. I've been led to believe that she will get a HB1 too. They also provide medical care so I wont have to pay that.

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Old Jul 15th 2015, 8:31 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by markhaggis View Post
Its a private school. I'm not too sure on the visa but HB1 rings a bell. I've been led to believe that she will get a HB1 too. THey also provide medical care so I wont have to pay that.

If that's correct your wife will not be able to work.

All the teachers at the private schools my daughter attended worked on 12 month contracts and the school did not provide healthcare insurance. They were NJ schools but it's worth checking.

Last edited by Jerseygirl; Jul 15th 2015 at 8:35 pm.
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Old Jul 15th 2015, 8:37 pm
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Default Re: What taxes and other deductions can I expect

Originally Posted by markhaggis View Post
Its a private school. I'm not too sure on the visa but HB1 rings a bell. I've been led to believe that she will get a HB1 too. They also provide medical care so I wont have to pay that.
Many employers "provide health insurance", it is very rare for there not to be part of the cost paid by the employee (so rare I have never heard of anyone other than someone on a short term secondment who was reimbursed by their employer to have totally "free" healthcare), and there are also deductibles (excesses) and co-pays (point of access payments).

If you get an H-1B your wife gets an H-4, which does not allow work, unless she is also going to be hired on her own work visa into a role that is an uncapped H-1B (mostly for education roles). FYI most H-1Bs are capped - there are none left for 2015. I fear that your potential employer may be being disingenuous, saying that "she can seek her own work visa", which is true, but finding an employer willing to apply for one for her is likely an immensely difficult task.

Last edited by Pulaski; Jul 15th 2015 at 8:40 pm.
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