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DV 2022 OC Selectees

Thanks so much for this, super helpful information! Already spent 14 months in LA before so I have paid federal and state taxes before (but was working for US companies at the time so was so super straight forward). I had heard of the tax agreements between the US and Australia but didnt realise it only covered the federal one. I'll most likely stay in california for at least the first year since my partner lives there, so has all of her family ties there as well but might look into moving somewhere cheaper once I build up a credit score.

Judging my timeline I would probably be moving in September/October, so I shouldnt have too much state tax to pay, and that should also give me a few months to find a US job. I'm not too attached to staying with an Australian company (although I love the job I'm at now) the benefits of a US job definitely outweigh working for an aus company is terms of salary and the health care benefits that a lot offer, so will most likely be the approach I go. The remote Aus job (intentionally took a remote job that was okay with me moving for this reason) was always just to help with the transition period for the first few months, a lot of the companies I'm planning to apply at only take hire US residents so it's tough applying for them before being in the country and without a guaranteed moving date (since we dont get the GC til we've actually been approved at the embassy :p).

But all this info is definitely pushing me to find a US job upon arrival quicker!



Ill be there from the 3rd-9th (So the Sunday and Monday you are). Will be free on the Sunday since I arrive early, but will be working the next day for most of the day so only free at night :(

That’s awesome, once you have a US job the whole state income and federal income taxes don’t become an issue as it’s all just part of your tax and as you have experienced pretty straightforward. Only an issue with the foreign remote.

As you’re planning to come end of year you should be fine then for state income taxes (depends on individual etc) as you’ll be under the threshold for CA taxes or only a small bill. Then gives you plenty of time to spend 2023 looking for a local job.

Didn’t know you have a partner over here, if she has health insurance through her job, depending on the conditions of her plan it might be possible to add you to her plan, not sure if you have to be married etc or how family members on plans work, so at least look into that to see if it’s an option.

You also mentioned your credit score (it seems to rule everything over here). For anyone coming over, I’d recommend get an American Express credit card (for those that don’t have one) in Australia at least 3 months before you leave (longer if possible), once you arrive in the US, if you have been an American Express customer in Australia for at least 3 months they will give you a US American Express card when you arrive without a U.S. credit score - this then allows you to start building a US credit score from as soon as you arrive. It’s called the American Express global transfer program.

More details can be found here: https://www.americanexpress.com/global-card-transfers/united-states.html
 
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That’s awesome, once you have a US job the whole state income and federal income taxes don’t become an issue as it’s all just part of your tax and as you have experienced pretty straightforward. Only an issue with the foreign remote.

As you’re planning to come end of year you should be fine then for state income taxes (depends on individual etc) as you’ll be under the threshold for CA taxes or only a small bill. Then gives you plenty of time to spend 2023 looking for a local job.

Didn’t know you have a partner over here, if she has health insurance through her job, depending on the conditions of her plan it might be possible to add you to her plan, not sure if you have to be married etc or how family members on plans work, so at least look into that to see if it’s an option.

You also mentioned your credit score (it seems to rule everything over here). For anyone coming over, I’d recommend get an American Express credit card (for those that don’t have one) in Australia at least 3 months before you leave (longer if possible), once you arrive in the US, if you have been an American Express customer in Australia for at least 3 months they will give you a US American Express card when you arrive without a U.S. credit score - this then allows you to start building a US credit score from as soon as you arrive. It’s called the American Express global transfer program.

More details can be found here: https://www.americanexpress.com/global-card-transfers/united-states.html
One other quick question, not sure if you considered it as an option. But what if you work as a self employed contractor in the US and the Aus company hires you that way, I know Susie mentioned it has its own tax headaches but figured you may know if you considered it when going through your options. While it may have headaches it might mean getting taxed less than paying both Aus taxes + cali state tax, if you don't know though Ill do some research of my own!

Credit card tip is great for everyone, haven't seen it discussed at all but yeah credit rules everything there! I have my Chase account still set up so I'm getting my Chase credit card before I even go to start building it up :) Potentially looking at Vegas once I have a decent credit score and can purchase a house (but will travel around a bit first to see what other states I like, didn't travel much last time due to work then covid :/ No state tax in Nevada and close enough to drive to LA for her family :) Don't think Id ever buy in LA, no way to get anything decent at a reasonable price even remotely close!
 
One other quick question, not sure if you considered it as an option. But what if you work as a self employed contractor in the US and the Aus company hires you that way, I know Susie mentioned it has its own tax headaches but figured you may know if you considered it when going through your options. While it may have headaches it might mean getting taxed less than paying both Aus taxes + cali state tax, if you don't know though Ill do some research of my own!

Credit card tip is great for everyone, haven't seen it discussed at all but yeah credit rules everything there! I have my Chase account still set up so I'm getting my Chase credit card before I even go to start building it up :) Potentially looking at Vegas once I have a decent credit score and can purchase a house (but will travel around a bit first to see what other states I like, didn't travel much last time due to work then covid :/ No state tax in Nevada and close enough to drive to LA for her family :) Don't think Id ever buy in LA, no way to get anything decent at a reasonable price even remotely close!
I don’t know sorry, it’s just not a possible situation for my work so never looked into it.

Yea the credit score rules everything, we found the Amex program great and also got a Discover secure card when we arrived (they also give you it with no US score or history). Both of those greatly helped get us a credit score and history. We loved LA but you’re right about the cost to buy, it’s madness.
 
While it may have headaches it might mean getting taxed less than paying both Aus taxes + cali state tax, if you don't know though Ill do some research of my own!
Do I understand this correctly, that the implication is that the self employment tax (I think it’s about 15% at the moment!) + federal tax rate (obviously varies with income) together are still less than Australian tax rate? (You pay state taxes either way.) wow.

Nevada is indeed a popular option for being close to California (either north or south) with no state income tax. We know a few people from the Bay Area who’ve moved just over the border to Reno, Incline Village etc. for socal Vegas is probably quite close enough.
 
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Do I understand this correctly, that the implication is that the self employment tax (I think it’s about 15% at the moment!) + federal tax rate (obviously varies with income) together are still less than Australian tax rate? (You pay state taxes either way.) wow.

I think it can be, Australia has tax brackets/thresholds (similar to the way the US does), but higher. The rates in Australia for income tax are 19%, 32.5%, 37% and 45% depending on income.

Someone earning over $180,001 AUD ($125k USD) is on the 45% rate. $120,001 AUD ($83k USD) is 37% rate. However the rates are based per threshold (the $180k income would be $51,667 tax + then 45% tax from every dollar over the $180k.

US (and correct me if I’m wrong) the highest rate is 37%, but that’s for someone on over $523k USD. For 125K the US rate appears to be 24%.

So someone earning equivalent $125k USD could pay up to 45% tax rate in Australia but only 24% tax rate in US (plus any state tax if applicable).

That’s why as we look for jobs here, while the income and benefits can be lower, in many situations it might work out better for us due to tax rate.

Then you add to the mix the whole health insurance and overall it generally becomes better to just have a US job. Definitely why an expert is needed when assessing it all.

Edited to update the figures/rates.
 
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Anyone want to travel areas of Fiji together between June 30th and July 5th?
I’m a 28yr old female travelling solo and thinking most of the activities are more fun with people
Will be arriving on the third we should definitely have a meal together! My boyfriend is travelling with me (he’s another Aussie living in LA) and we plan to do some surfing while in Fiji
 
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I received my 2nl earlier this week....when i checked my updates the status only changed to Suva, but no dates were given for the interview....please advise reason....(fiji selectee)
 
I received my 2nl earlier this week....when i checked my updates the status only changed to Suva, but no dates were given for the interview....please advise reason....(fiji selectee)
Not sure of the reason but if I was you I would send an email to the Suva consulate email as they have been very responsive and ask why you weren’t allocated an interview time or date
 
Tax filing obligations kicks in from the day you become a LPR regardless of where you’re residing after that initial activation.
Hi @Sm1smom, Does this also mean that any income you earn in Australia or property you own in Australia is subject to USA tax obligations? ie if we put our house on the market and it doesn't settle until after we have become a LPR (arrived in the states and had our green card 'proper' issued) does that mean we are liable for capital gains tax in the USA?
thank you
 
Hi Everyone,
Our 2NL has come through. YAY! We have an early July interview - Wednesday 6th. So it sounds like we might see some of you there. We have booked our appointment at the Epworth earlier in the week. Have booked our flight to Fiji, still need to book return flight before we leave but got all the critical parts done. We arrive in Fiji 2nd May after travelling to brisbane international airport - sydney and Melbourne were more expensive even though they are both closer. Melbourne is only 3.5hours away from us.
 
Hi @Sm1smom, Does this also mean that any income you earn in Australia or property you own in Australia is subject to USA tax obligations? ie if we put our house on the market and it doesn't settle until after we have become a LPR (arrived in the states and had our green card 'proper' issued) does that mean we are liable for capital gains tax in the USA?
thank you
I’m am not well versed in the tax nuances, so I can not authoritatively speak on this, but I do know tax filing obligations starts from day one of becoming a LPR, regardless if the plastic GC has been issued/received or not. You become a LPR as soon as you enter the US with your immigrant visa and are processed accordingly at the POE.
 
I’m am not well versed in the tax nuances, so I can not authoritatively speak on this, but I do know tax filing obligations starts from day one of becoming a LPR, regardless if the plastic GC has been issued/received or not. You become a LPR as soon as you enter the US with your immigrant visa and are processed accordingly at the POE.
I've been put in touch with a US tax accountant & have requested a consultation. I'm concerned about this type of thing too, along with what my obligations may be if I don't move straight away. I'll report back after my appointment...
 
Hi @Sm1smom, Does this also mean that any income you earn in Australia or property you own in Australia is subject to USA tax obligations? ie if we put our house on the market and it doesn't settle until after we have become a LPR (arrived in the states and had our green card 'proper' issued) does that mean we are liable for capital gains tax in the USA?
thank you
(Not a tax professIonal but: ). Yes you will need to declare it on the relevant tax return for that year you file in the US, but the actual amount you owe will again be subject to the tax treaty - so (generally) if the income tax/ capital gains tax you’ve paid in Australia is more than what would be owing in the US, you wouldn’t have to pay more in. Suggest, again, you speak to someone well versed in both US and Australian tax as well as expat issues; if you are absolutely sure you will make the move to the US permanent, it may make sense to dispose of any substantial assets before you activate your immigrant visa.
 
I've been put in touch with a US tax accountant & have requested a consultation. I'm concerned about this type of thing too, along with what my obligations may be if I don't move straight away. I'll report back after my appointment...
Make sure it’s someone who understands the issues immigrants face. Many have only ever dealt with taxpayers who have always resided in the US.
 
I think it can be, Australia has tax brackets/thresholds (similar to the way the US does), but higher. The rates in Australia for income tax are 19%, 32.5%, 37% and 45% depending on income.

Someone earning over $180,001 AUD ($125k USD) is on the 45% rate. $120,001 AUD ($83k USD) is 37% rate. However the rates are based per threshold (the $180k income would be $51,667 tax + then 45% tax from every dollar over the $180k.

US (and correct me if I’m wrong) the highest rate is 37%, but that’s for someone on over $523k USD. For 125K the US rate appears to be 24%.

So someone earning equivalent $125k USD could pay up to 45% tax rate in Australia but only 24% tax rate in US (plus any state tax if applicable).

That’s why as we look for jobs here, while the income and benefits can be lower, in many situations it might work out better for us due to tax rate.

Then you add to the mix the whole health insurance and overall it generally becomes better to just have a US job. Definitely why an expert is needed when assessing it all.

Edited to update the figures/rates.

Interesting discussion regarding taxes etc.

The one aspect that is kind of "different" in your scenario is that you wanted to stay working for the Australian based job. If you are doing that, then it makes sense to live in a cheaper, no income tax state such as Florida or Nevada. But you have to contrast that with localized wages. You earn less in cheaper areas.

For example, I plugged numbers into a cost of living calculator (link below) to compare San Francisco wages to Tampa, FL. $300k in SF is about the same as earning 135k in Tampa. Now these calculators are always a bit "odd" because they assume the same ways of living, but I can tell you that there are other aspects of being on SF wages that will be a factor. Your wealth will build faster in SF than in Tampa, one off expenses (like buying a car, or paying for a vacation) are less expensive on SF wages. So there are advantages to living in an expensive area, especially if you might want to retire someday to someplace cheaper. Simply put, if you have been living in SF, you can retire anywhere and it will be cheaper, but if you retire from living/working in Tampa, you won't have the same options open to you, and your wealth won't have built as fast.

 
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