Filed for P85 before leaving england, now what?

[LouisePaul 0]

My husband filed for P85 before he left england basically so he won't have to pay taxes in the UK (this is my understanding), now what is he supposed to do? They told him to contact the IRS and post date when he came out here. Is this what we're supposed to do? My other question relates to our income, right now he makes about 20K a year, its just the two of us living in our apartment, we need to file for AOS using HIS income, he is a game developer for android and iphone and even when he is not working on games hes still selling them thus earning an income thus not working in the US - the problem is I don't have a job, we need to file for AOS with his income, but since he is a sole trader/sole proprietor he doesn't have a business in the UK he kinda is the business. We're freaking out now because does this mean he can't use his income for AOS ince the only way to use the imagrants income is if it will continue form the same sorce but since he did the P85 will it still count as form the same source? meaning does it have to be source like SAME JOB or source as in same COUNTRY? Will he be paying US taxes on it now since hes a sole trader/ sole proprietor? We don't really understand how this works we just want to file for AOS and move on so he can get back to work and boost his income even more with more apps.

Other information:

He came out on a K-1 visa, he self sponsored with his income and it was accepted.

We don't have a co sponsor, we don't have anyone we could ask we're doing this all on our own which is why we're freaking out.

He devlops apps for apple and android on his computer he does not need to be in the uk to work on his business

He has NOT worked on his business at all since entering the US

Thank you for your time,

Louise

[TBoneTX 46,060]

*** Thread moved from main AOS/Family-Based forum to U.K. regional subforum -- country-specific input is required beyond standard AOS advice. ***

[Nich-Nick 3,354]

I think the "source" of his income is Apple and Android or whoever writes the checks as far as immigration is concerned. That's why they allowed his sponsorship for the K1 visa. Had he gone to the interview and said " I earn x amount of money at Sainsbury's", they would have figured he couldn't physically get to work at Sainsbury's after he moved so that money wouldn't count. His "source" of income was Sainsbury's.

Now he's in the US, so erase all that came before. It's a new process. He needs to prove his income. Does he still get paid weekly, monthly? Prove the income.

The P85 is more about who gets to tax his income. I think it's an income tax question and he needs to keep excellent records because filing taxes in the US for 2013 is going to be complicated. He will be self-employed to the IRS which includes self-employment tax and paying in quarterly since there is no employer to withhold. He's told HMRC a date for leaving and to stop taxing him, so the US is going to want to tax the money from that date on I would guess. Do the IRS, HMRC, and USCIS talk to each other and compare notes on individuals? Highly unlikely. Can the IRS just look up his P85? No. Does he have to report foreign earned income to the IRS on his 2013 tax return? Yes. But these are tax problems not immigration as I see it.

[LouisePaul 0]

I think the "source" of his income is Apple and Android or whoever writes the checks as far as immigration is concerned. That's why they allowed his sponsorship for the K1 visa. Had he gone to the interview and said " I earn x amount of money at Sainsbury's", they would have figured he couldn't physically get to work at Sainsbury's after he moved so that money wouldn't count. His "source" of income was Sainsbury's.

Now he's in the US, so erase all that came before. It's a new process. He needs to prove his income. Does he still get paid weekly, monthly? Prove the income.

The P85 is more about who gets to tax his income. I think it's an income tax question and he needs to keep excellent records because filing taxes in the US for 2013 is going to be complicated. He will be self-employed to the IRS which includes self-employment tax and paying in quarterly since there is no employer to withhold. He's told HMRC a date for leaving and to stop taxing him, so the US is going to want to tax the money from that date on I would guess. Do the IRS, HMRC, and USCIS talk to each other and compare notes on individuals? Highly unlikely. Can the IRS just look up his P85? No. Does he have to report foreign earned income to the IRS on his 2013 tax return? Yes. But these are tax problems not immigration as I see it.

Thank you so much for your response this has once again eased a whole boat load of stress, still work to do obv, but it's not as overwhelming. Luckily we're both good about saving paperwork (asside from when we sent off our I-129F without taking copies because we were in a rush, big mistake) and have finally got a filing cabinet for our apartment, also my parents have done these kind of taxes before (not immigrating taxes but self employed and corporate taxes) so hopefully things will go smoothly. Also he used to get paid once a month but Android changed the system and now he gets paid twice a month/ they're in the process of chaining to that.

[Nich-Nick 3,354]

Thank you so much for your response this has once again eased a whole boat load of stress, still work to do obv, but it's not as overwhelming. Luckily we're both good about saving paperwork (asside from when we sent off our I-129F without taking copies because we were in a rush, big mistake) and have finally got a filing cabinet for our apartment, also my parents have done these kind of taxes before (not immigrating taxes but self employed and corporate taxes) so hopefully things will go smoothly. Also he used to get paid once a month but Android changed the system and now he gets paid twice a month/ they're in the process of chaining to that.

I just notice you married in 2012. You can file a joint tax return with him if you want to. If you earned less than $3800 (your income) then you wouldn't need to file so probably not worth it. But it's an option if you earned income or had any withholding you want to get back. I did a thread about it --a walk-through for doing it with TurboTax. He qualifies for foreign income exclusion for 2012. He can file jointly with you, even without having his greencard yet. It works out as an advantage for Americans with a good ncome, so don't know how it would work out for you with low income.

Edited February 21, 2013 by Nich-Nick

[LouisePaul 0]

I just notice you married in 2012. You can file a joint tax return with him if you want to. If you earned less than $3800 (your income) then you wouldn't need to file so probably not worth it. But it's an option if you earned income or had any withholding you want to get back. I did a thread about it --a walk-through for doing it with TurboTax. He qualifies for foreign income exclusion for 2012. He can file jointly with you, even without having his greencard yet. It works out as an advantage for Americans with a good ncome, so don't know how it would work out for you with low income.

Oh wow good to know, I'll have to add up and see how much I made form the job I had. I think I mad just under that, maybe a little bit more than that. Since I don't have that job anymore for the I-864 question #23: My current individual annual income is: do I put $0 because I'm currently unemployed? I'm assuming I do.