Immigrating to the US

[Hamster]

Thanks, this is very helpful. I dont have assets here so I think my taxes should be fairly simple to consolidate. By "expensive", how much are we talking? I must say, you and the poster above sound like Sable employees pitching your services to a potential client.

Well I recommend Sable because that is who we used and they are well known. There was another company "Tax Consulting SA" or something who people have had success with, but they had an upfront call wanting to charge something like R30.000 for some of this stuff.

Costs for me:
- 2021: R1395 (Tax return)
- 2022: R1495 (Tax return)
- 2022: R2500 (Tax Status Change)

So EUR 300

You can do this stuff yourself, but I didn't want to mess around with SARS and just get it right the first time especially with their new tax residency process which seemingly not even they themselves understood a year or so ago.

 

[Hugo_Pta]

Your South African tax return will be cheaper than the US one. I don't think you would get a real person to do ths US part for under $250.

Your main expenses will be:
- The Forex fees when moving money abroad. Depending on who you use they always charge a percentage commission on top of the actual fees.
- You will potentially pay capital gains tax on assets that appreciated.
- If you decide to withdraw your retirement funds, you will pay fees on this as well.

Also read up on tax savings accounts when you move here. You and your spouse will get a $10k p.a. allowance to put into a tax free savings account. There is a pre-tax and post-tax option (Roth IRA). Both have their own merits.

Medical expenses are also tax free, there are Health Savings Account (HSA) and Flexible Saving Accounts (FSA). I know people who buy stocks within their HSA accounts.

You can also buy government bonds tax free (i-bonds) and some municipal bonds are tax free.

It's a whole different world over here!

 

[DonneTrump]

We are a provider in the space of South Africans moving abroad and can comment on the fiscal aspects of international movement, especially as the United States is different than most other international locations and especially where you are a high net worth individual or family. Some of the more technical aspects are covered in the Lexis Nexis Publication “Expatriate Tax” which was authored by Tax Consulting (and please note we are not punting book sales, as everyone knows there is no money therein; but this has been acknowledged by Judge Dennis Davis as important contribution to our tax legal literature).

Concerning your initial items raised and those whose items are within our scope of expertise –

• Where your move is permanent, you need to formally become non-resident on record with SARS.
• A move to the US will generally make you US tax resident on US income for world-wide income from date of arrival. We have some ultra wealthy clients which thus requires an interim step which includes US and RSA tax planning before they arrive in the US. For the High Net Worth, the primary saving is on US and RSA estate duty following a well planned approach.
• Where you become non-resident in South Africa, you have a CGT deemed disposal obligation to SARS under Section 9H. This would only apply to certain assets and not cash.
• You do not have to sell any assets in RSA (even though you indicate you have none) and you do not need to move any money to an offshore account. Where you are moving money abroad or back, we can guide on the simple rules to follow and how to make efficient with your bank and SARB (the quantum also makes a difference, but you should be efficient regardless of the quantum).
• One of our clients take South Africans to the US for farming work, so please let us know if you want to have a chat with him. I appreciate farm workers are niche, but he is a good guy and always willing to give direction on practical aspects of moving to the US.
  
  Kind Regards,
  Donne Trump (Tax Consulting SA)
  

 

[rsachoc]

First post for me, in awhile...found this thread when I decided I needed a blast from the past and logged back into (what was then for me) myadsl.co.za. Thought I'd try and share any insight into immigrating to the US, as I've been here for around 6 years now (am a permanent resident now, lucky me). Prior to that I immigrated to the UK, so I likely have some insights that I am happy to share. Let me know of any specific questions, @cguy did a good job of answering the previous ones though.

As @cguy stated, get your SS as soon as possible, and get a bank account and credit card to start building credit. Much of your future activities depends on good credit. I recommend the Discover Secured credit card, the way it works is you give them a deposit of whatever you want your credit line to be, you transfer the money, they issue the card and you use it like a normal credit card. In about 9 to 12 months, assuming you've paid off the balance, maintained your account in good order, they'll switch you to a "normal" card (i.e. unsecured credit and return your initial deposit). I would wait another year before applying for other cards while your credit history builds.

On the topic of accommodation, if your company doesn't offer a temporary location, you'll have to use hotels/AirBnBs/friends and family. If you're working in NY, suggest finding an apartment in Manhattan, as your quality of life will be better (assuming you're working in Manhattan). Commuting from NJ is fine (I did it for 3 years, but long-term you want something more sustainable). Difference in rents between NJ and NY is not that large, but you'll get much smaller in NY (Manhattan) that NJ.

 

[Jerepigo]

First post for me, in awhile...found this thread when I decided I needed a blast from the past and logged back into (what was then for me) myadsl.co.za. Thought I'd try and share any insight into immigrating to the US, as I've been here for around 6 years now (am a permanent resident now, lucky me). Prior to that I immigrated to the UK, so I likely have some insights that I am happy to share. Let me know of any specific questions, @cguy did a good job of answering the previous ones though.

As @cguy stated, get your SS as soon as possible, and get a bank account and credit card to start building credit. Much of your future activities depends on good credit. I recommend the Discover Secured credit card, the way it works is you give them a deposit of whatever you want your credit line to be, you transfer the money, they issue the card and you use it like a normal credit card. In about 9 to 12 months, assuming you've paid off the balance, maintained your account in good order, they'll switch you to a "normal" card (i.e. unsecured credit and return your initial deposit). I would wait another year before applying for other cards while your credit history builds.

On the topic of accommodation, if your company doesn't offer a temporary location, you'll have to use hotels/AirBnBs/friends and family. If you're working in NY, suggest finding an apartment in Manhattan, as your quality of life will be better (assuming you're working in Manhattan). Commuting from NJ is fine (I did it for 3 years, but long-term you want something more sustainable). Difference in rents between NJ and NY is not that large, but you'll get much smaller in NY (Manhattan) that NJ.

Thanks for the recommendations. I have been having quite a long week. I left SA earlier in the week and now based in midtown Manhattan. I rented an airBnB for the month so I can get time to search for an apartment. I am tempted to stay in Manhattan for the next year so I can fully settle in and get to know NY properly. Then maybe after a year living in Manhattan I can consider moving further away and stay in a place like Hoboken. The offices of my new job are in Time Square so a wallking distance from this airBnB apartment.

I ****ed up by not activating roaming services on my vodacom sim so now I cant even recieve sms's for bank authentication and other OTP services from sites like github. I have been sick as hell since I arrived so I am mostly just recovering from body ache and fever. Luckily my SA bank card works so I can easily swipe when paying for groceries or buying stuff. I will need to find time to go to a bank and get credit and debit card as well buy a new sim that works in the US (which network is best? T-Mobile?)

 

[Jerepigo]

How does one prepare for the winter? As in, what kind of essential clothes to buy so I don't freeze to death? I went out walking in the evening last night and although it was fairly cold, it wasn't that cold. I suspect it will get a lot worse once it starts snowing.

Any recommended spots for food, clubbing, weekend activities, etc?

 

[cguy]

Thanks for the recommendations. I have been having quite a long week. I left SA earlier in the week and now based in midtown Manhattan. I rented an airBnB for the month so I can get time to search for an apartment. I am tempted to stay in Manhattan for the next year so I can fully settle in and get to know NY properly. Then maybe after a year living in Manhattan I can consider moving further away and stay in a place like Hoboken. The offices of my new job are in Time Square so a wallking distance from this airBnB apartment.

I ****ed up by not activating roaming services on my vodacom sim so now I cant even recieve sms's for bank authentication and other OTP services from sites like github. I have been sick as hell since I arrived so I am mostly just recovering from body ache and fever. Luckily my SA bank card works so I can easily swipe when paying for groceries or buying stuff. I will need to find time to go to a bank and get credit and debit card as well buy a new sim that works in the US (which network is best? T-Mobile?)

Awesome, welcome to America!

It is unfortunately flu season right now, so you may have that.

I use AT&T, but only because I haven’t bothered to change. I’ve heard that T-Mobile is the best bang for buck and that Verizon has the best coverage across the states, although that really doesn’t matter unless you’re headed to rural areas.

 

[cguy]

How does one prepare for the winter? As in, what kind of essential clothes to buy so I don't freeze to death? I went out walking in the evening last night and although it was fairly cold, it wasn't that cold. I suspect it will get a lot worse once it starts snowing.

Any recommended spots for food, clubbing, weekend activities, etc?

I suggest getting a warm Patagonia jacket and gloves. That’s probably all you need in NY City. Further north you need to worry about leggings and outer shells, etc.

Oh, and some rubber boots (I have “Bogs”). These are best for avoiding slipping and wet socks. I typically keep another pair of shoes at the office since Bogs are a bit warm to wear all day.

 

[bwana]

How does one prepare for the winter? As in, what kind of essential clothes to buy so I don't freeze to death? I went out walking in the evening last night and although it was fairly cold, it wasn't that cold. I suspect it will get a lot worse once it starts snowing.

Any recommended spots for food, clubbing, weekend activities, etc?

I grew up in NY - it's cold in the winter, especially in the city when the wind whips around the buildings. Buy a warm jacket - most of mine come from LL Bean or Lands End - hat, scarf, and gloves are vital - snot will freeze in your nose

And waterproof boots. Snow quickly turns to slush and there's nothing quite as jarring as stepping in a puddle of that. I still wear my duck boots here in SA, just not the insulated ones.

My dad moved from Hoboken to PA around the same time I moved to SA and the winters there come a little sooner, and last a little longer, but they never seem quite so harsh.

 

[Jerepigo]

This is all very useful. A friend of mine recommended I got to Macy's or Bloomingdale's for warm clothes. How are those compared to your suggestions in both quality and price? There is a T-Mobile nearby where I stay so I should be able to go there sometime today and get a US number.

 

[TEXTILE GUY]

Possibly use your work address to get your SSN, if you dont have it yet.
Then, you will need to get a drivers license. This is handy to have.
When you apply for it, at state, fill ZA. They may just reissue a license. My buddy got it right in NJ.
If not, you will need to do the whole test thing gain. Its easy.

With these, opening a bank account is easy too. They will give you a routing number and account number.
Ask them for a prepaid credit card - this will help to build a credit score.
The routing number helps with online billing for lights or whatever you need to pay.

I have 2 T Mobile numbers - their online paying app is cr@p.
Remember, in the US - SMS is still a thing.
Avoid Spectrum - their phones are locked and their network coverage isnt as good as T Mobile.

Enjoy

 

[rsachoc]

@Jerepigo late reply. Clothes you've already got some advice which is good so go with that (good waterproof shoes are a must, I purchased a North Face jacket a few years back for around $200 and has lasted well and is warm enough). On the cellular provider, I'd suggest Mint Mobile, it's a virtual provider that uses the T-mobile network (GSM) so it should work with any unlocked GSM compatible phone. $15 per month for 4gig data, $30 if you want unlimited. I find it much cheaper than the main providers and have been with them for a few years now with no issues. T-mobile works pretty well for me in NYC.

*edit* on license, I had to do the written test again (had a UK license), but not the driving test - this was in NJ, although I would NY would be similar. I did notice some other immigrants from other countries were required to retake both the written test and the driving test to be issues an American drivers license. Not sure about SA.

 

[Tman*]

How does one prepare for the winter? As in, what kind of essential clothes to buy so I don't freeze to death? I went out walking in the evening last night and although it was fairly cold, it wasn't that cold. I suspect it will get a lot worse once it starts snowing.

Any recommended spots for food, clubbing, weekend activities, etc?

Start with high Quality gloves and thermal socks. Small investment but makes the world's difference (fingers and toes warm).

 

[Jerepigo]

I gotta say, NYC has some of the worst built apartments I've ever seen. Paper thin walls and squeaky wooden floors that you can hear your neighbors just walking or farting. Cant even enjoy your music without someone getting offended

 

[rsachoc]

I gotta say, NYC has some of the worst built apartments I've ever seen. Paper thin walls and squeaky wooden floors that you can hear your neighbors just walking or farting. Cant even enjoy your music without someone getting offended

Manhattan is notorious for having really crappy apartments at exorbitant prices! It'll get better once you get setup and settled.

 

[cguy]

A lot of very old buildings there without retrofitted sound insulation. Stay away from wooden lifts if you can!