I’ve been offered a transfer from London to NYC, and have been offered a salary of $220k. My wife is going to take a year out of work to care for our infant daughter, so this money will be our full income as a family.
The American system confuses me hugely. Following most calculators, it sounds like we will have roughly $11k a month. If we assume $4k a month on rent somewhere roughly 45-60 mins from Broadway, is $6-7k enough for a family to live on, including stuff like healthcare for the entire family through work?
This might be a silly question, but will we have a comfortable/good time in NYC or NJ on this salary? Will my wife be able to afford to take my daughter out for stuff like swimming lessons and baby classes, and will we have enough to afford stuff like flights home to see family in the UK? I’ve spoke to a few people at work, and we’ve had ranges from “wtf half a mil is lots!” to “wtf you’ll be limited to NJ and won’t be able to take vacations”, so it would be good to get more perspectives.
That is not how international taxes work. If he doesn’t maintain two addresses and treat the UK one as his “domicile”, he will only owe taxes in the US. There are also bilateral treaties that cover this and, for example, retirement accounts.
What is a travel visa? Presumably OP has a UK passport and would have a US work visa, which is attached to an employer. He also doesn’t need any visa to enter with a UK passport-- just needs to fill out the ESTA application.
Do you mean a work visa? Generally companies that pay you a quarter million dollars per year will cover the $10k of relocation fees and the filing fee is trivial compared to the mood. However, OP, any relocation cash you get from the company is considered taxable income (thanks, Trump). He also doesn’t need a lawyer unless something goes terribly wrong.
Either way, I would definitely get a tax accountant, OP. In general, the US system is incredibly complicated and the accountant will almost certainly know of deductions that I do not know of and more than pay for his or her fee.
This commenter has no idea what they’re talking about, OP-- literally everything statement they made was false.
And the answer to this commenter’s question about needing to live in NY is a solid “no”, but I suspect someone who makes $220k doesn’t want to spend 3 hours commuting every day when they could very easily afford to live wherever the fuck they want.
Lol you recommend not budgeting for a lawyer and call me clueless. I’ve actually worked internationally, and brought up cost blockers. Stop spreading ignorance.
Same here, homey. Currently working in Europe as an American.
Lived and worked in multiple countries without needing a lawyer or paying double taxes. Your lawyer must have been a moron though, clearly.
Source re: double taxation
I’ve blocked you and merely left this up for OP’s benefit.
https://www.irs.gov/forms-pubs/about-publication-54.
Tax guide for abroad citizens, blocking me doesnt make you right, it means you did some research and walked away when you realized you’re wrong.