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Thinking of moving my business to US
Thread poster: Raffaella Palmisano
Raffaella Palmisano
Raffaella Palmisano  Identity Verified
United States
Local time: 08:57
Member (2018)
English to Italian
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TOPIC STARTER
reply Sep 13, 2018

Riccardo Schiaffino wrote:

Emma Page wrote:

I know this isn't the point of your post, but if you think you can compare having private insurance in the UK to the cost of covering your own healthcare in the US, you've got another thing coming! Try 10x the cost for starters.


Unfortunately, without data it is impossible to claim anything. So I have done my homework and found a good insurance package for around $110 per month with $1K excess. Compared to my Bupa UK monthly payment of £250 with £200 excess, I still think it is a good deal. Moreover, I did live in US for 7 years, so I am very well acquainted with living cost across the nation. From now on, colleagues, please answer the question I posed in my previous comment with the tax rates instead of giving me vague advice. Thanks!


An health insurance for which you pay $ 110 / month will probably not cover anything serious... It may be a supplementary insurance, but not a full coverage one. Or it may have severe limitations about the doctors who are covered (in-network). Or it might be a scam.

Just to give you an idea: I'm 60, and my wife is 59. We are both non smokers and in good health. Our deductible is $5000 / year per person, and the total out of pocket is $ 6,500 per year per person... and we pay some $ 700 per month per person for that coverage.

If you are younger than us you are going to pay less... but the rates will keep on increasing every year.

The NHS is light years better than what you can find here.

BTW... going without health insurance is not a good idea: even if you have to pay for something yourself (because of the deductible) procedures might cost ten times as much for people who don't have an insurance at all.

The best way to think of the health services in the USA is to think of the US as a rich third-world country: fair to excellent health services for the 1%, very costly mid-quality service for the employed middle classes, and prohibitive for the rest (the major cause of individual bankrupcies in the States is related to health costs).

[Edited at 2018-09-12 22:30 GMT] [/quote]

Every insurance package depends on what your needs are, so it is really useless to talk about it in this forum. Riccardo, I don't know if you are aware but in US there are Samaritan organizations that help you split the bills and loads of charities.

This is an example of a regular plan (very basic, but pretty inclusive):
https://www.cignaglobal.com/quote/pages/quote/AdaptQuote.html

This is an example of a shared plan (I totally recommend this website):
https://www.ehealthinsurance.com/ehi/st/plan-details?planKey=84149900:31&productLine=ST

There are also organizations that help you free of charge (if you are underinsured):
http://health.utah.gov/disparities/healthcareinutah.html

Now can we move back to the original post topic? I have posted a few tax rates and would like to understand if they are more or less what you pay.


 
Michael Wetzel
Michael Wetzel  Identity Verified
Germany
Local time: 15:57
German to English
Not in America, but American Sep 13, 2018

If you're halfway familiar with the US system, Wikipedia actually offers pretty clear information.

The SE (self-employment) tax rate is 15.3% (for social security [= state retirement fund] plus Medicare [= state medical coverage for retirees]) of 92.35% of your income or (more clearly and helpfully): This adds up to 14.3% or your net earnings from self-employment.
If you earn well over $100,000 per year, then there is a cut-off point, above which the rate shrinks down to a n
... See more
If you're halfway familiar with the US system, Wikipedia actually offers pretty clear information.

The SE (self-employment) tax rate is 15.3% (for social security [= state retirement fund] plus Medicare [= state medical coverage for retirees]) of 92.35% of your income or (more clearly and helpfully): This adds up to 14.3% or your net earnings from self-employment.
If you earn well over $100,000 per year, then there is a cut-off point, above which the rate shrinks down to a negligible amount.

As others have said, there is no way to give any kind of useful estimate of the amount of income tax you will have to pay without your providing a lot of details about your personal life and business that no reasonable person would want to share here. Even then, you would really need a tax lawyer to get a good idea of a plausible rate range.
That said, it seems very unlikely you would end up with an effective federal income tax rate (tax total as a percentage of total net earnings) of 20% or higher, and 10% seems more likely (look up "US income tax" on Wikipedia: unless you qualify for a lot of big deductions or you have children, net earnings of $50,000 would put you at an effective tax rate of about 10%).

Utah's state income tax was 5%; apparently it is being changed to 4.96% (applied to earnings minus exemptions).
There don't seem to be any city or county income taxes in Utah.
The mechanics of deducting state income taxes from your federal income tax total is too complicated for me to undertand and, again, it depends on a lot of personal details. (However, it seems unlikely that this deduction would come into play unless you are earning well over $50,000 or have an unusual amount of other big-ticket deductions for some reason.)

Almost all US states exempt services (like translations) from sales tax, and I would guess that Utah is one of them.
Property tax is a major source of tax revenue in most US states. You'd have to look at your county to get a better understanding of its impact. If you're renting, you don't really need to worry about this one, because your landlord will have already calculated it into your rent.
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Raffaella Palmisano
Nikki Scott-Despaigne
 
Raffaella Palmisano
Raffaella Palmisano  Identity Verified
United States
Local time: 08:57
Member (2018)
English to Italian
+ ...
TOPIC STARTER
Thank you! Sep 13, 2018

Michael Wetzel wrote:

If you're halfway familiar with the US system, Wikipedia actually offers pretty clear information.

The SE (self-employment) tax rate is 15.3% (for social security [= state retirement fund] plus Medicare [= state medical coverage for retirees]) of 92.35% of your income or (more clearly and helpfully): This adds up to 14.3% or your net earnings from self-employment.
If you earn well over $100,000 per year, then there is a cut-off point, above which the rate shrinks down to a negligible amount.

As others have said, there is no way to give any kind of useful estimate of the amount of income tax you will have to pay without your providing a lot of details about your personal life and business that no reasonable person would want to share here. Even then, you would really need a tax lawyer to get a good idea of a plausible rate range.
That said, it seems very unlikely you would end up with an effective federal income tax rate (tax total as a percentage of total net earnings) of 20% or higher, and 10% seems more likely (look up "US income tax" on Wikipedia: unless you qualify for a lot of big deductions or you have children, net earnings of $50,000 would put you at an effective tax rate of about 10%).

Utah's state income tax was 5%; apparently it is being changed to 4.96% (applied to earnings minus exemptions).
There don't seem to be any city or county income taxes in Utah.
The mechanics of deducting state income taxes from your federal income tax total is too complicated for me to undertand and, again, it depends on a lot of personal details. (However, it seems unlikely that this deduction would come into play unless you are earning well over $50,000 or have an unusual amount of other big-ticket deductions for some reason.)

Almost all US states exempt services (like translations) from sales tax, and I would guess that Utah is one of them.
Property tax is a major source of tax revenue in most US states. You'd have to look at your county to get a better understanding of its impact. If you're renting, you don't really need to worry about this one, because your landlord will have already calculated it into your rent.



Thank you Michael! When I was working as an employee at a translation company in Utah, I remember my boss told me that all invoices for translation services were VAT exempt. I don't have an income in the range of $100K and I do have 2 dependents. Thank you for providing the reference to the Wikipedia article. I can see now that there is some allowance in the tax calculation.


Liviu-Lee Roth
 
Luximar Arenas Petty
Luximar Arenas Petty  Identity Verified
United States
Local time: 10:57
English to Spanish
+ ...
IRS Publications Sep 13, 2018

You could probably check the IRS Publications to see if you find what you are looking for. Here one of them.

 
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