We have our K-1 visa- the visa holder is self - employed...

[Courtney 1]

Ok- i'm hoping someone here can help me before I start calling up accountants.

My fiance has just recieved his K-1 visa. He will be here in the US with me this week. He's from the UK and he's self employed, but currently doing drafting jobs for a UK company. He owns a home in the UK, and rents it out, so he will not be fully severing ties from the UK as far as banking and taxes go. (and i don't even know if that relates to our situation, but i think it might).

We won't be getting married for a little over a month, and he's got plenty of drafting jobs to do for the company in the UK while he's here before our wedding. Problem is- he's here on a K-1 visa, and won't have work authorization until we apply for AOS (and then get his EAD!). Could this be a problem as far has him working before he gets the employment authorization? And where would his income be taxable if he is allowed to work- in the UK since he's working for a UK company (that has no location in the US), or would he be taxed in the US, since he's working on US soil?

He has spoken with a tax attorney in the UK, and they seem to think that he'll be taxed in the US on income earned while working in the US, despite the fact that he's working for a UK company. Now, i'm pretty sure this will be a problem for our AOS- if he's been working in the US before he's allowed to, I'm pretty certain the US Gov't won't be happy. Any thoughts or suggestions would be greatly appreciated!

Thanks!!!

Edited March 3, 2008 by Courtney

[YuAndDan 153]

He will still be working for his foreign (UK) employer not a US employer only remotely, income will still be paid to his foreign bank account. He will not be considered to be employed in the USA unless he is working for a US employer.

It is just like if I went to the UK for a few months, and continued to work on projects back home in the USA using my laptop computer to send and receive emails. I will not be considered employed in the UK even though I am doing work while in the UK, the work has no influence on the UK.

[Usui Takumi 1,562]

He will still be working for his foreign (UK) employer not a US employer only remotely, income will still be paid to his foreign bank account. He will not be considered to be employed in the USA unless he is working for a US employer.

It is just like if I went to the UK for a few months, and continued to work on projects back home in the USA using my laptop computer to send and receive emails. I will not be considered employed in the UK even though I am doing work while in the UK, the work has no influence on the UK.

Yes but will the income need to reported to the US. IE. if your wiring money from the uk account to the USA.

[YuAndDan 153]

He will still be working for his foreign (UK) employer not a US employer only remotely, income will still be paid to his foreign bank account. He will not be considered to be employed in the USA unless he is working for a US employer.

It is just like if I went to the UK for a few months, and continued to work on projects back home in the USA using my laptop computer to send and receive emails. I will not be considered employed in the UK even though I am doing work while in the UK, the work has no influence on the UK.

Yes but will the income need to reported to the US. IE. if your wiring money from the uk account to the USA.

This is a gray area, the period from entry until receiving the green-card the person is a NON-Immigrant, NON-Resident, so I suspect doing work remotely for a UK firm is not considered to be working "in" the USA, only after becoming a US resident (Green-card) holder should income then need to be reported.

[Usui Takumi 1,562]

Would that lead to redundant taxation?

[Courtney 1]

Would that lead to redundant taxation?

...what is redundant taxation?

[Usui Takumi 1,562]

Getting taxed by the UK, having NHS removed then getting taxed in the US, having medicare/ss removed.

In theory if you were making 25,000 quid you'd only see about 13,000 once both governments take their cuts.

I'm guessing there has to be a waiver on one side or the other. Ie. the UK taxes because that money is basically leaving the local economy and the US gives you a break because your bringing money into the economy without taking up an american job. something.

[Usui Takumi 1,562]

Nevermind, you just apply a taxcredit that matches the foreign rate of taxation