I propose to buy an apartment and live in Florida for a year or so.?

Question

I am 66. Retired UK citizen. What might I pay for medical insurance. What Taxes would I be liable for. For example would I pay tax on world wide income, investments , pensions. Thanks

Answer 1

At your age, private medical insurance would be prohibitively expensive. You'd be better off taking a job that included health insurance benefits.

All US citizens and residents are subject to US income tax on their world-wide income. There may be a tax treaty between the US and UK that would partially exempt your state pension from US tax (similar to our Social Security pensions which are partly tax-free under certain circumstances) but all other pensions and income would be fully taxable.

Florida doesn't have an income tax. The sales tax is less than half of the VAT rate in the UK. However property taxes (similar to rates but based upon value, not occupancy) are some of the highest in the US, largely due to the fact that there is no income tax. Homeowners insurance is also very dear due to the damage from storms over the past decade.

From a tax perspective you'd probably be no worse off than you are now with the possible exception of your state pension. You'd receive a credit for any foreign income taxes paid on your US tax returns and if the UK doesn't levy tax once you leave the country -- and I believe that they don't -- you'll pay less tax in total here than you currently do.

In the end, the deciding factor will be health insurance cover. As stated earlier the cost will be prohibitive for private health insurance unless you are in exceptional physical condition. If you're like me -- too many fags and too many pints over the years -- the cost will be absurdly high.

Answer 2

If you were able to purchase private medical insurance, it would be several hundred dollars per month. You can contact several providers and they will give you a quote based on your particular circumstances.

On the federal level, you will be taxed on your worldwide income including investments and pensions. The State of Florida does not tax your income.

One break you do get is that if you receive the US equivalent of Social Security from the UK, you will not pay US income tax on that money. This is because of the tax treaty between the US and UK.

A second tax break for you is that if you pay taxes to the UK, then you can take a credit for those taxes on your US tax return.

Answer 3

I cannot answer all of your question, but for oldmansid, what part of Florida do you live in to not have property taxes? Ours is $1200 a year.

Answer 4

Depending upon how many days of a year you stay in USA, your status will be resident alien or non resident alien or dual status alien. Resident alien, for tax purposes, are treated just like us citizens.
To have clear idea of income tax implications, you should read IRS publication no. 519: US Tax Guide for Aliens at
http://www.irs.gov/publications/index.html

Answer 5

Good move no state taxes down there. You also might want to buy a small house, there are no property taxes either.