IMG Resources - Finance

Building your credit

​Building your credit it's a very important part of your financial journey here in the United States. There are many credit reporting agencies that will track your spending and provide a credit score. Having a good credit score would be important to buy assets like a car or property or taking a loan. Read this to find out more about building your credit. 

A good starting way to build your credit score would be by opening a credit card and making sure that you pay all your bills on time. Several companies and banks may offer credit cards for new residents without any prior credit history. A good way to build your credit profile is by getting one of these credit cards, I'm using these for day-to-day purchases and making sure that you pay the bills on time. Paying your monthly rent, lease and other financial obligations can also help boost your credit score. It is also advisable to open a checking bank account as your salary is usually credited to your account. You can also open a savings account which may have some monthly transaction limitations. While traditional big banks do not offer any significant interest rates, you may be able to find online banks that offer higher interest rates. Regardless of which bank you open your checking or savings account I would recommend making sure that they are FDIC insured. 

Note: ACP is not recommending a specific card but providing examples of common credit cards in the United States. You should review all criteria and interest rates before selecting a credit card if you choose to get one.
Examples of credit cards
Other items of note:
When choosing a bank in the United States, here is an article with resources of what to look for. Each bank has different criteria, so be sure to review several to find out what will work best for your needs. 

Retirement Plans

  • If you are onboarding to a program or hospital in the United States for the first time, you will realize that your program or hospital will have some retirement plans to choose from. There can be several types of retirement plans. It is highly advisable to read through each plan carefully and understand it.
  • With most retirement plans, a portion of your monthly or biweekly salary will be added to your retirement account based on your choice and preferences. In addition to that, your employer may contribute a certain amount to your retirement funds in addition to what is deducted from your salary.
  • You will have a range of investment options to choose from and decide where your retirement funds will be invested in. Some plans will take the money from your salary before taxes, and then you will pay taxes on it when you begin to use it during retirement. Other plans will take your contribution after taxes, which you can then use when you retire without taxes being taken from it.
  • Retirement plans are intended to be used when you retire, therefore, you can only take this out at or after your retirement age which is usually 59 ½ years. If you take the money out early, you may have to pay a penalty in addition to taxes. This is a general overview, and for additional questions, you can contact your program/employer or bank to talk with a financial advisor.
  • It's never too early to start investing in your retirement plan, even if only a small amount is invested in the beginning. 
  • The money can stay in your retirement account even after you leave your training or job. You can just choose to leave it as such or move it to your new account. If you have a financial advisor, they can assist in  moving the funds, if preferred, to a new account.
  1. Check out this IRS website for more guidance.
  2. Here is additional information on retirement plans, and you can begin a plan outside of your employer too.

Filing Taxes

  • Everybody receiving any form of income in the United States needs to file taxes. Therefore, if you are starting a residency, fellowship program or a job in the United States, you will have to file taxes every year. Every year, the deadline for filing taxes is usually around mid-April.
  • For international medical graduates, please read and understand the concepts about tax status. It would be essential to understand whether you are a resident alien or a non-resident alien for tax purposes. While companies like H&R block or TurboTax can help file taxes for you, sometimes they may not understand the nuances of visa situations. Therefore, it's important to understand this to ensure that your taxes are filed properly every year. You can also talk with an accountant, but be sure they are knowledgeable on the nuances of your residency status.
  • In general, you will start off as being a non-resident alien for tax purposes until you meet the substantial presence test. After this, you will file taxes as a resident alien.
​The following links can be useful: