Tax residency is the country in which you must pay taxes on your income.
For example, if you live in the US for more than 183 days, even on a tourist visa, you become a US tax resident and must pay taxes on all income, not just those earned in the US. And if you receive a Green Card, you automatically become a tax resident.
What does US tax residency mean?
For example, if you received an inheritance or gift worth more than $100,000 in your country of origin, you must pay US tax. Dividends, asset sales and any other income received in other countries are also subject to taxes.
Tax optimization is a very important point in the immigration process.
At the initial interview, we explain to all our clients the importance of tax planning before starting the immigration and residency process. Since the optimization of assets and their correct declaration / evaluation before the start of the immigration process will optimize the tax burden in the future.
What does a tax advisor do to optimize future US taxes:
1) the consultant will draw up the current financial balance of the Investor’s assets
2) for each type of asset, the best route will be proposed in accordance with your plans and future tax prospects
Asset optimization is an important step in the immigration process, which must be started a few months before obtaining tax residency, and preferably 1-2 years in advance, so that there is time to optimize your assets and not lose your capital.
Examples of US tax rates:
- income tax depends on the category of person, state and amount of income: from 10 to 39.6%
- payroll taxes – social fund (Social Security Tax) – 12.4%, medical fund (Medicare) – 2.9%, unemployment tax (Unemployment Tax) – 2.7%. The employer pays half and the employee pays half
- tax on gifts (for the donor) – up to 40% on amounts over $15,000
- tax on dividends – up to 37% for residents and 30% for non-US residents
- property tax (real estate) – 1-2% and depends on the state, city and sometimes district
How taxes are paid in America:
Calculation, payment and filing of a tax return for all types of taxes is the responsibility of the tax resident. You can fill out the declaration yourself, but a tax consultant will help you avoid mistakes in calculating taxes and take into account the required deductions. The tax return must be filed by April 15 of the year following the reporting year.
Most declarations are not checked by the tax service, but randomly (about 1%), a declaration check can be carried out and then each amount in the declaration will have to be proved by documents.