Moving my money to the USA

tk05

I'm hoping to move to the USA but I am wondering if anyone here has tried bringing their entire savings to the USA.

I heard that if you transfer more than $10,000 USD into a bank in the US that they will report the transaction to the US government. I would be transferring more than that amount so will I run into any trouble?

What I'm most concerned about is since I will be moving there for the long term will the US government demand that I pay tax on the money I bring in because they view it as income (I already paid tax on it to the Irish government).

What's the best way to transfer my money into the US? Looking on Google I mostly find advice for the UK suggesting to use UK companies so that's not much use. I'm guessing just transferring from my current account isn't the best since my bank uses fake exchange rates that are always several cents below the real market rate so I'd lose a good chunk of money.

silja

We moved all our savings when we emigrated. Let's just say it was enough to buy a house here and still have some savings until work was found. Yes, the US bank will have to report it, but bilateral agreements prevent double taxation; the report is so they can watch for money laundering.

We opened a US account and transfered the money directly. With the amount involved, it was the only practical solution, and the US bank was VERY accomodating, knowing the good chunk of money that came to them. Not sure what bank you are with, but 2 years ago, BoI has normal rates for transfer, plus a small fee.

Black Swan

Dub also has American bank branches that you can compare with Irish banks to see which offers the best exchange rates and lowest fees to transfer your funds from euros to dollars (e.g., Bank of America, Citi Bank, etc.). Shop around.

snubbleste

tk05 wrote: »

I'm guessing just transferring from my current account isn't the best since my bank uses fake exchange rates that are always several cents below the real market rate so I'd lose a good chunk of money.

Fake exchange rates? You'll never find a bank that offers you the rate you see on xe.com

tk05

snubbleste wrote: »

Fake exchange rates? You'll never find a bank that offers you the rate you see on xe.com

I just had a look at my bank's exchange rate today.
Yes in my opinion unless the rate IS the market rate then it's just simply a made-up arbitrary rate. It is not THE exchange rate.

The rate my bank is offering is a lot lower than the real market exchange rate. I would lose 5% of my money with that rate and that's not including any fees they charge for the transfer or currency exchange.

This is the rate on the Bureau de Change board which they use when converting cash so I'm not certain that they apply this to international account transfers but I'd bet it is.

A few years ago I went around from bank to bank comparing advertised exchange rates and my bank had the worst rate in the country.
At the time I was changing a cheque in a foreign currency and the other banks said I had to have an account with them.

Is there a way for me to get my money transferred by the bank of my choice without opening an account with them. Or is there any other way to minimize my loss of money.

5+% ends up being quite a lot of money when transferring large amounts which can really hurt when I need money after moving for finding a home, buying furniture and everything else.

dave2pvd

You'll need an account in the US anyway; go ahead and open one when you get there. Not in Bank of America though.

Negotiate the exchange rate and commission fee (make them delete the damn commission) with your bank. Then negotiate with other banks you may have an account with. You'd be surprised how things can change, especially for larger amounts. NB: ask for a written/emailed quotation.

Consider bringing $9,999.00 cash per person. After negotiating exchange rate and commission in banks and bureaus de change. Keep in mind: you will be making return visits. It's $9,999.00 per visit. You can bring more, but you'll have to declare it. I wouldn't....

lonestargirl

dave2pvd wrote: »

You'll need an account in the US anyway; go ahead and open one when you get there. Not in Bank of America though.

Negotiate the exchange rate and commission fee (make them delete the damn commission) with your bank. Then negotiate with other banks you may have an account with. You'd be surprised how things can change, especially for larger amounts. NB: ask for a written/emailed quotation.

Consider bringing $9,999.00 cash per person. After negotiating exchange rate and commission in banks and bureaus de change. Keep in mind: you will be making return visits. It's $9,999.00 per visit. You can bring more, but you'll have to declare it. I wouldn't....

What's the hassle with declaring it? He's already paid tax on it he won't owe any money. I'm all for electronic transfers, you should invertigate forex sites they often offer the best rates - in fact xe.com have their own one that's supposed to be pretty good (xe.trade).

InTheTrees

It may be wise to do a little research on the dollar and its future. Its been falling for a few years now and its beneficial to the US economy to keep it low so the fed is actively working to lower it.

You would effectively be investing in the dollar and given that government policy is to keep the value low it seems unwise to me. Google quantative easing.

If it was me I wouldnt buy dollars unless I had to.

Here's a graph:

http://www.indexmundi.com/xrates/graph.aspx?c1=USD&c2=EUR&days=3650&lastday=20101022

Aprilmay

silja wrote: »

We moved all our savings when we emigrated. Let's just say it was enough to buy a house here and still have some savings until work was found. Yes, the US bank will have to report it, but bilateral agreements prevent double taxation; the report is so they can watch for money laundering.

We opened a US account and transfered the money directly. With the amount involved, it was the only practical solution, and the US bank was VERY accomodating, knowing the good chunk of money that came to them. Not sure what bank you are with, but 2 years ago, BoI has normal rates for transfer, plus a small fee.

Can I ask which bank you opened your account with? We will be in the same position early next year that you were in when we finally move i.e. enough money to buy a house and some savings. We did hear because it s the proceeds of a house sale we won't be subject to taxation. I can't wait to go now:)but we are concerned about the amounts banks will charge.:eek:Thanks

lonestargirl

Aprilmay wrote: »

Can I ask which bank you opened your account with? We will be in the same position early next year that you were in when we finally move i.e. enough money to buy a house and some savings. We did hear because it s the proceeds of a house sale we won't be subject to taxation. I can't wait to go now:)but we are concerned about the amounts banks will charge.:eek:Thanks

We moved a large sum over for a deposit on our house (almost 6 figures). There were no fees on the US side, my bank charged €25 for the transaction. With such a large amount of money you really need to keep an eye on the exchange rate as any small variation in that will make a big difference in the amount you get. You can also ask what's the best rate they will do for you and you may be able to get it slightly better than someone who's buying $100 will get.

BTW, you know that since you activated your green cards you have to file US tax returns for 2010 right? There is a double taxation treaty in place but you still have to declare your worldwide income.

silja

We are with ARVEST; you'll find that generally, regional banks are more accomodating than big national ones. The deal was basically the same lonestar girl had.

lonestargirl

silja wrote: »

regional banks are more accomodating than big national ones

+1, we are with Sterling Bank here in Texas. We never use ATMs, our cards are Visa Debit and we just get cashback if we ever need cash. I use my card for everything, I've had $20 in my wallet for the last 3 weeks without needing it.

Aprilmay

lonestargirl wrote: »

We moved a large sum over for a deposit on our house (almost 6 figures). There were no fees on the US side, my bank charged €25 for the transaction. With such a large amount of money you really need to keep an eye on the exchange rate as any small variation in that will make a big difference in the amount you get. You can also ask what's the best rate they will do for you and you may be able to get it slightly better than someone who's buying $100 will get.

BTW, you know that since you activated your green cards you have to file US tax returns for 2010 right? There is a double taxation treaty in place but you still have to declare your worldwide income.

Thanks we will want to move a large amount once the sale goes through on our home(will be over 6 figures)The rates are worrying because you can gain thousands or lose depending on the daily rate.
I didn't realise we would have to file tax return until we move fully I might give the embassy a call to clarify this.

Aprilmay

silja wrote: »

We are with ARVEST; you'll find that generally, regional banks are more accomodating than big national ones. The deal was basically the same lonestar girl had.

Thanks I've never heard of either bank- just the main banks Bank of American etc

lonestargirl

Aprilmay wrote: »

I didn't realise we would have to file tax return until we move fully I might give the embassy a call to clarify this.

Yes, all US citizens and green card holders are required to file tax returns annually and report their worldwide income. Would suck if you won the Lotto!!

Aprilmay

lonestargirl wrote: »

Yes, all US citizens and green card holders are required to file tax returns annually and report their worldwide income. Would suck if you won the Lotto!!

Thats ok I didn't win last weeks 16 Million jackpot that was someone else- Where do I get a form I presume it wouldn't be much as its was only activated on the 8th September? We won't be fully moving until the end of June when the kids finish school (oldest is making her confirmation too) But I will be going back with my husband to look at more homes in Feb.Do you submit the form and then they tell us how much it is we owe?
This is all new and I don't want to screw anything up.Thanks for the advice

attractions

You can also ask what's the best rate they will do for you and you may be able to get it slightly better than someone who's buying $100 will get.

lonestargirl

Aprilmay wrote: »

Where do I get a form I presume it wouldn't be much as its was only activated on the 8th September? We won't be fully moving until the end of June when the kids finish school (oldest is making her confirmation too) But I will be going back with my husband to look at more homes in Feb.Do you submit the form and then they tell us how much it is we owe?
This is all new and I don't want to screw anything up.Thanks for the advice

When you activated your green card is irrelevant, you were a permanent resident in 2010 and thus must file taxes declaring your worldwide income for 2010. You can offset a lot of tax paid in Ireland so that you don't pay tax twice on your income, I don't know your personal circumstances but it is unlikely that you will have to pay any tax in the US but you are still required to file a tax return. Some details are here.

Aprilmay

lonestargirl wrote: »

When you activated your green card is irrelevant, you were a permanent resident in 2010 and thus must file taxes declaring your worldwide income for 2010. You can offset a lot of tax paid in Ireland so that you don't pay tax twice on your income, I don't know your personal circumstances but it is unlikely that you will have to pay any tax in the US but you are still required to file a tax return. Some details are here.

Thanks - I spoke to my husband he knew about it ,he said we are waiting for our SSN to arrive so we will file at the end of the year and we should have them soon to do so.

lonestargirl

Aprilmay wrote: »

Thanks - I spoke to my husband he knew about it ,he said we are waiting for our SSN to arrive so we will file at the end of the year and we should have them soon to do so.

Perfect, filing tax returns is especially important for you as you are outside the US. I signifies that you are completing your obligations as a permanent resident.

InTheTrees

lonestargirl wrote: »

you were a permanent resident in 2010

I thought she said she wasnt moving there until June 2011? You cant be resident in two places. Can you?

lonestargirl

InTheTrees wrote: »

I thought she said she wasnt moving there until June 2011? You cant be resident in two places. Can you?

She activated her green card in September. Remember US citizens and LPRs must file taxes regardless of where they are living.

InTheTrees

If you live outside the US and earn less than $90k and pay local taxes then the IRS wont want anything from you except a tax return.

Thats 65000euros or 58000 pounds.

Over that amount and they'll want a cut in addition to the local taxes.

lonestargirl

InTheTrees wrote: »

If you live outside the US and earn less than $90k and pay local taxes then the IRS wont want anything from you except a tax return.

Thats 65000euros or 58000 pounds.

Over that amount and they'll want a cut in addition to the local taxes.

Very true, that's what I was saying. She is obligated to file returns but chance are she won't owe anything.

Wisco

You can buy good software (for a reasonable price) for calculating your taxes such as Turbo Tax, if you want to do it yourself and want to avoid employing someone else. As it's your first time paying US tax, I'd advise not trying to do it all on your own as it can be rather complicated- I've personally found the Turbo Tax stuff great- it asks you about all your income and basically tells you what forms you need and what you need to pay. I paid for it one year and then used it as a template to do the following years forms. And if you get close to April 15th and are feeling panicky about the whole tax situation, you can always file for an extension.