Moving to the USA/ Self-employment
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| Vom Thema belegte Seiten: < [1 2] | | Nutzer | Initiator des Themas: Claudia Nitzschmann Moving to the USA/ Self-employment |
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Daina Jauntirans 
Vereinigte Staaten
 Mitglied (2005)
Deutsch > Englisch
+ ...
| | Deductions/credits | Jul 16 |
Claudia,
Your tax calculation does not include any deductions (which lower your taxable income) or credits (which lower your tax). Some states don't have state income tax. Some states don't have state sales tax. You may make less or more - the tax rate changes. There are a lot of variables, but most people on here seem to be charged roughly between 20-25% in overall taxes.
As I recall, when I lived in Germany the health insurance rate was in the neighborhood of 13%, half of which was paid by the employer, so I guess it was less than 10%. I am also paying for a family of 4, though. Health insurance is a real wild card in the US.
[Edited at 2008-07-16 16:46]
| | | | Terry Richards
Frankreich
Französisch > Englisch
| | There is an SE tax but... | Jul 16 |
...as others have said, there's two parts to social security. The one part is what any employee pays and the other part is the employer's part. That part is what you pay extra if you are self-employed.
However, [some of] that is deductable from your income tax. Also, so are state taxes and a whole lot of other stuff.
I was self-employed in the USA for about 10 years, with two different businesses. I had an accountant deal with it all (which is why I'm a bit fuzzy on the details) and my total tax bill at the end of the year was always about (or less than) 30% of my total income. If you budget for 30% you won't be far off and, in practice, you will probably pay less.
I say again, having an accountant is well worth it.
Getting your green card and health insurance will be a far bigger problem than taxes will...
Terry.
| | | | Lori Cirefice
Frankreich
Mitglied (2007)
Französisch > Englisch
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Amy Duncan wrote:
I've been through the green card thing
Amy |
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Same here, with my husband when we lived in the States. It took about 2/3 months and several trips to the INS (a 6 hour drive) for him to get a temporary work permit and SSN# (all of which he needed in order to get the driver's license).
It was a very, very, very long and horrible process, even if your husband is a US citizen, he will still have to provide all kinds of financial proof that he can support you. If that's not enough for them, other members of his family may have to vouch for you. In fact, after living for over a year in the US, my husband *still* didn't have his greencard, then we moved back to France, what a waste of time!
Don't worry about your taxes, worry about your immigration status and healthcare 
| | | | Abigail Dahlberg
Vereinigte Staaten
Deutsch > Englisch
+ ...
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Lori Cirefice wrote:
Same here, with my husband when we lived in the States. It took about 2/3 months and several trips to the INS (a 6 hour drive) for him to get a temporary work permit and SSN# (all of which he needed in order to get the driver's license).
It was a very, very, very long and horrible process, even if your husband is a US citizen, he will still have to provide all kinds of financial proof that he can support you. If that's not enough for them, other members of his family may have to vouch for you. In fact, after living for over a year in the US, my husband *still* didn't have his greencard, then we moved back to France, what a waste of time!
Don't worry about your taxes, worry about your immigration status and healthcare |
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I strongly agree with you, Lori. My husband and I were married and lived in Germany for several years before I applied for my green card and it took at least six months (using the fast-track system whereby you file through the US consulate) and a tonne of paperwork for my application to be processed. In addition to financial proof that I would be supported (from him and his parents), we also had to submit photos of us at various stages of our relationship and letters of reference from friends that we had known each other for that long, certified marriage and birth certificates (long form) for both of us, statements showing that I had no police record (for every country I'd ever lived in), undergo an extensive health examination, get immunisations to name just a few of the hassles. And we'd been married for four years when we applied.
I would be a lot more worried about immigration than the IRS in your shoes! Take it from someone who has been there.
Best of luck,
Abigail
[Edited at 2008-07-16 18:13]
 
| | | | giselrike
Vereinigte Staaten
Deutsch > Englisch
+ ...
| | Social Security Benefits | Jul 16 |
I have to correct Henry - you do in fact get Social Security benefits from the States if you leave after a certain number of years and return to Germany. There is an agreement on Social Security benefits between the US and Germany and you will be entitled to disability benefits as well as old-age benefits on both sides.
I also agree with everyone else that the total tax bite is approximately 30%, depending on your deductions and income.
And as several others have stated, if your husband is gainfully employed with a company that offers good health benefits, you will be ensured under his plan. Another way to save on the expense is to choose a plan with a higher deductible if you have some money set aside to deal with the out-of-pocket expenses and are generally healthy - to me it's a lot better to pay lower premiums and be able to set aside the difference each month than to pay higher premiums just in case, because that's money you'll never get back, whereas otherwise the money you were able to save each month only has to be used in the event that you need a more expensive procedure or have to go to the hospital, in which case you may have to pay a higher amount towards your co-payment or out-of-pocket expense, but that's something you have to decide for yourself.
| | | | Claudia Nitzschmann
Deutschland
Deutsch > Englisch
+ ...
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All of you have been so helpful, I hope the information flow on this thread continues.
I am a bit discouraged as far as the green card goes now. We are not married yet but we have lived together for 5 years in Germany. I have lived in the US for one year before but only for voluntary work on a kind of internship/non-work visa. Does anyone have any idea as to how to continue my business as a German business until I could get a work-permit? I don't think we could afford loosing all my income.
As far as German health insurance: as I mentioned before I pay barely about 5%. If you are state insured in Germany it can amount to 15%, half of which is paid by your employer, but private insurance is income-independent.
Also as far as paperwork for German self-employment goes I never really found it that hard. I've never had much paperwork either. Getting signed up as self-employed, tax reports, that's it. Sounds much less confusing than in the US. It's about as simple as 1-2-3.
@Ivonne: "Twice the earning?" How so? I don't pay more than about 25% now in Germany and paperwork is almost non-existent. So I don't see how I could make more in the US. It seems to be about the same with much more of a hassle for non-US-citizens...
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| Nicole Schnell
Vereinigte Staaten
 Mitglied
Englisch > Deutsch
+ ...
| | work visas obligatory in the US | Jul 17 |
Without a work visa or being a permanent resident you are not allowed to work at all in the US.
Besides being an illegal immigrant, you would also breach the contracts of your European outsourcers, which usually contain something like this: "By signing this agreement, partner certifies that he or she is legally authorized to work in the country where the work will be performed and from where he or she will issue the invoice and receive payment for the work performed for XXX."
Please feel free to contact me privately.
[Subject edited by staff or moderator 2008-07-17 13:41]
| | | | Claudia Nitzschmann
Deutschland
Deutsch > Englisch
+ ...
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Let me just clarify that I am not in the US yet. This is all just preliminary information gathering. I have no intention to work illegally, which is why I am trying to get as much information as possible ahead of time.
I am simply asking questions in connection with the possibility of moving and once I move I will make sure everything I do is legal.
| | | | Nicole Schnell
Vereinigte Staaten
Mitglied
Englisch > Deutsch
+ ...
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We are aware of that, your country of residence is stated right under your name.
However, I would be happy to provide a summary which might save you approximately 50 hours of research and phone calls. My immigration went extremely easy and fast (it took only 5 months!), and I'd be happy to share my experience.
| | | | Terry Richards
Frankreich
Französisch > Englisch
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Note that the "H" series work visas are tied to a specific job and are "owned" by the employer. If you want to change jobs, the new employer has to get a new visa.
There is also a limit on how long you can have them or, at least, there used to be.
I'm also 99% sure you can't be self-employed on an "H" visa. I had to get my "green card" before I could start a business.
It is extremely unlikely that you will get a green card on the basis of living with somebody. Maybe an immigration lawyer could come up with some sort of common law status but, believe me, the immigration procedure is a nightmare even when everything is "normal" and straightforward.
Have you considered looking for a job in the USA? That way the employer looks after a large part of the immigration, health insurance and taxes.
Terry.
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