# H1B tax and other issues



## Traveller2011 (Nov 25, 2010)

Hello All, 

A US company is willing to obtain a H1B visa for me to work for them in Washington State area for 1 or possibly 2 year project. I have a couple of queries I hope someone can help me with:

1. I am trying to understand what taxes I will have to pay and what those tax rates will be? Where can I find that kind of info?

2. Will my wife be able to join me in the US if I have a H1B visa? We are both UK passport holders.

3. I was also wondering what other deductions there may be to my salary, in addition to tax? ie like the Uk National Insurance etc?

4. where can I obtain cost of living/rental info for the Seattle area?

Many thanks in advance!


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## Bevdeforges (Nov 16, 2007)

1. You'll be subject to the full range of Federal, State and local taxes just like anyone living there. Internal Revenue Service for Federal information. Google "Washington State tax authority" to find the website for the state. Local taxes depend on where you're living (town, county, etc.).

2. Yes if your employer puts in for a dependent visa at the same time. Chances are, though, she will not be able to work.

3. Depends on the employer - things like health care, savings plans, retirement, etc. 

4. Can't really help you there.
Cheers,
Bev


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## Traveller2011 (Nov 25, 2010)

Cheers Bev very helpful

what is the 'social security' payments I hear about? is that akin to UK NI?

thanks


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## Bevdeforges (Nov 16, 2007)

Traveller2011 said:


> Cheers Bev very helpful
> 
> what is the 'social security' payments I hear about? is that akin to UK NI?
> 
> thanks


In the US, "social security" refers to the national retirement benefit program. There is a small component for disability coverage, too.
Cheers,
Bev


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## JohnSoCal (Sep 2, 2007)

Fortunately Washington state does NOT have a state income tax. You basically have to pay:

1. Federal income tax based on your income. Refer to the IRS web site and pay attention to non-resident aliens as this affects your ability to file a joint return with your wife that will lower your tax considerably.

2. Social security + Medicare tax = 7.65% on first $106,800.00 of earned income. Note: There is a very strong chance that there will be a 2% reduction for next year making the rate 5.65% for 2011.

Depending on your employer, there may be additional deductions for Medical insurance, etc. Some employers, especially in the high tech world, still provide Medical insurance and other benefits for free. 

The best thing to do is to ask your potential employer what deductions you will have from your check.

Your wife will be able to come with you but she will be considered a non-resident alien and will not be able to get a Social Security card.

I'm on H1-B visa. Am I 'resident' or 'non-resident' alien? - Yahoo! Answers


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## Traveller2011 (Nov 25, 2010)

JohnSoCal said:


> Fortunately Washington state does NOT have a state income tax. You basically have to pay:
> 
> 1. Federal income tax based on your income. Refer to the IRS web site and pay attention to non-resident aliens as this affects your ability to file a joint return with your wife that will lower your tax considerably.
> 
> ...



thanks a million, very useful info


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## Bevdeforges (Nov 16, 2007)

JohnSoCal said:


> Your wife will be able to come with you but she will be considered a non-resident alien and will not be able to get a Social Security card.


Slight correction here. As long as your wife has a visa (most likely a dependent visa) and is living with you in the US, she is NOT considered a non-resident alien. You will still be able to file a joint return. You will have to get an ITIN (International Taxpayer Identification Number) for her.

The year you move to the US, you may be dual status for the year of the move:

>>An alien whose status changes during the year from resident to nonresident, or vice versa, generally has a dual status for that year, and is taxed on the income for the two periods under the provisions of the law that apply to each period. <<
Cheers,
Bev


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