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[*Snowdrop* 604]

There are tax treaties between the US and UK that stave off double taxation.

When your guy moves here, he will probably have worked in Scotland, right? You will report that income on IRS Form 2555 as 'foreign earned income' on your US tax return when you file next spring for 2008. You will probably choose to file jointly (married filing jointly). If your combined incomes are under a certain amount, his wages earned in Scotland will not be taxed on your US return - but you still have to show it. The total household wage amount changes each year - I believe it's around $85000.00 this year.

Long story short - if you earn as a couple less than the maximum, his wages will not be subject to US tax. But you have to show them on the return, so it requires an additional form. TurboTax or similar self-help software walks you through this nicely, or you can hire a tax professional to help you.

We found the biggest nuisance about this was converting sterling to dollars for the return. He should start saving his paystubs from January 1, 2008 as the tax year in the UK runs April to April compared to the US method of calendar year - ie he won't get a 'W-2' for 2008 so you have to hand calculate what he earned in calendar year 2008 for US tax purposes.

He will also likely be entitled to a tax refund on his UK wages. He fills out a form with his employer right before he goes to get that money back (or he can visit his Social Security office). If memory serves me it's called a P85 - someone here who has done it more recently can confirm or correct me. And they can mail the money to the US.

Hi - sorry just to get back to the taxes point. I'm the UKC - if my visa comes through say in October this year (fingers crossed) and I move over for example on 1st November. As a LPR will I be liable for US taxes on money earned from the date I arrive or from money earned from the beginning of the 2008 tax year (is it April to April in the US?)

I am getting a redundancy payment in Sept which is tax free in the UK - it would be a killer to have to pay tax on it in the US.

[no name 1]

There are tax treaties between the US and UK that stave off double taxation.

When your guy moves here, he will probably have worked in Scotland, right? You will report that income on IRS Form 2555 as 'foreign earned income' on your US tax return when you file next spring for 2008. You will probably choose to file jointly (married filing jointly). If your combined incomes are under a certain amount, his wages earned in Scotland will not be taxed on your US return - but you still have to show it. The total household wage amount changes each year - I believe it's around $85000.00 this year.

Long story short - if you earn as a couple less than the maximum, his wages will not be subject to US tax. But you have to show them on the return, so it requires an additional form. TurboTax or similar self-help software walks you through this nicely, or you can hire a tax professional to help you.

We found the biggest nuisance about this was converting sterling to dollars for the return. He should start saving his paystubs from January 1, 2008 as the tax year in the UK runs April to April compared to the US method of calendar year - ie he won't get a 'W-2' for 2008 so you have to hand calculate what he earned in calendar year 2008 for US tax purposes.

He will also likely be entitled to a tax refund on his UK wages. He fills out a form with his employer right before he goes to get that money back (or he can visit his Social Security office). If memory serves me it's called a P85 - someone here who has done it more recently can confirm or correct me. And they can mail the money to the US.

Hi - sorry just to get back to the taxes point. I'm the UKC - if my visa comes through say in October this year (fingers crossed) and I move over for example on 1st November. As a LPR will I be liable for US taxes on money earned from the date I arrive or from money earned from the beginning of the 2008 tax year (is it April to April in the US?)

I am getting a redundancy payment in Sept which is tax free in the UK - it would be a killer to have to pay tax on it in the US.

You pay taxes from the date you earn. The US tax year is Jan-Jan. However, it depends if you file jointly as well.

I use an accountant & he knows all the laws!

[SnowyTater 0]

Yeh, I'm sure you'll probably have to pay taxes from the date you start working here, I guess. Sowwy I don't know what the 'redundancy' thing means but if what you're making is tax free, why would it be killer to have to pay the US in taxes though?

I'm with illumine though. I'd just let an accountant handle it all I'm sick of the immigration paperwork as it is, I don't wanna get lost in the tax ones too.

I also know a couple who live in Boiling Springs!

My dad and stepmother live in Boiling Springs!

:o

I bet we're all secret blood enemies or something Egg their houses.

[*Snowdrop* 604]

Yeh, I'm sure you'll probably have to pay taxes from the date you start working here, I guess. Sowwy I don't know what the 'redundancy' thing means but if what you're making is tax free, why would it be killer to have to pay the US in taxes though?

I'm with illumine though. I'd just let an accountant handle it all I'm sick of the immigration paperwork as it is, I don't wanna get lost in the tax ones too.

I realise I would have to pay taxes from the date of entry and any work in the US but I wanted to know if they also looked at all foreign income earned by the non-USC in the tax year prior to their entry.

Redundancy = severence pay. LOL - my husband thinks it's hilarious that we call it redundancy pay. Basically I am being offered severence pay when I leave my job here in the UK, which is brilliant timing as I was leaving anyway to immigrate. In the UK the first £30,000 of severence pay is not taxable under UK tax laws. So if it's a tax free payment under UK law it would be very annoying if the US govt could claim some of it - especially as I will get it before I arrive in the US.

I think I will ask my husband to find an accountant who knows about international situation but can anyone else confirm whether the non-USC can be taxed on income for the months before they became a LPR?

(ahhhh - just re-read your post. I meant "it would be a killer" ie really really bad. Not "it would be killer" ie awesome. I had to just call my husband to find out what killer meant in the US! )

[no name 1]

Yeh, I'm sure you'll probably have to pay taxes from the date you start working here, I guess. Sowwy I don't know what the 'redundancy' thing means but if what you're making is tax free, why would it be killer to have to pay the US in taxes though?

I'm with illumine though. I'd just let an accountant handle it all I'm sick of the immigration paperwork as it is, I don't wanna get lost in the tax ones too.

I realise I would have to pay taxes from the date of entry and any work in the US but I wanted to know if they also looked at all foreign income earned by the non-USC in the tax year prior to their entry.

Redundancy = severence pay. LOL - my husband thinks it's hilarious that we call it redundancy pay. Basically I am being offered severence pay when I leave my job here in the UK, which is brilliant timing as I was leaving anyway to immigrate. In the UK the first £30,000 of severence pay is not taxable under UK tax laws. So if it's a tax free payment under UK law it would be very annoying if the US govt could claim some of it - especially as I will get it before I arrive in the US.

I think I will ask my husband to find an accountant who knows about international situation but can anyone else confirm whether the non-USC can be taxed on income for the months before they became a LPR?

Why would you pay taxes on earned income while as a citizen living in their homeland (& before LPR status)?

If you bring in a large amount I believe there is taxes though. Ask an accountant.

Edited March 4, 2008 by illumine

[SnowyTater 0]

Oh I think illumine's right. On the declaration cards when you're entering the US on an airplane or anything, you're only allowed a certain amount of cash. But I think past that you just have to DECLARE it, not necessarily that it's taxed. It sounds like the US would not normally tax you on any prior earnings, no, so your severence pay should be clear and untaxed, but maybe you'll get a different tax just for bringing in so much.

But you know maybe you can get around that? How much time is there between when you receive your severance pay and when you're flying over? Maybe you can wire the money to your fiance in small quantities or something, or leave a bank account open in the UK after you've moved here even, and withdraw it slowly? Might wanna check that all that is um...legal and not tax evasion or anything, of course

Take a look at this link. Looks like these guys have roughly the same question as you do.

Edited March 5, 2008 by SnowyTater

[SnowyTater 0]

Ah sorry I screwed up the link, and it won't let me re-edit it again for some reason.

Here ya go: for the win

[Mags 112]

I made a really good sized portion of money from my house sale in the UK. I paid it into my HSBC current account and applied for a HSBC credit card before I left. I used that credit card for everything in the USA and paid the monthly bill online from my current account before any interest charges were added.

[Trompe le Monde 1,107]

We did the same as Mags with our UK money