[Vitap]

Hi,

I have been offered $120K p.a and an L1B visa to work in NYC. I have a dependent wife.
1. How much approximately would be my taxes?
2. How much would I end up saving if I live in NJ as compared to NY?
3. Since I would be moving in November would I still have to pay NY taxes or my country's taxes?

Thanks and regards,
T

[AtlantaTaxExpert]

1) Your income will be taxed by the federal government at mostly 15% for Income tax, 6.2% for Social Security tax (temporarily reduced to 4.3%) and 1.45% for Medicare taxes.

NY state will ask for about 7%, and NY City about 3%. See link below for detailed information about the state tax rates.

http://www.taxfoundation.org/taxdata/show/228.html

2) Living in NJ IS an option, and for sure you will save on the NYC income tax. State tax rates are about the same.

3) For the states, you pay taxes ONLY on the income earned while living in the states. If you file jointly with your wife, you pay taxes on ALL world-wide income earned in 2011, but you get an offset by using the Foreign Tax Credit (Form 1116).

If you need professional help filing your tax return, email me at [email protected].

[Vitap]

Thanks. I appreciate your quick reply.

[AtlantaTaxExpert]

Glad to help!