Sorry - tax

[roombarob 0]

I have read all of the other posts but I really need help.

My wife (usc) and I (uk) moved to the states in March 2005. I started working in August 2005.

I was actually made redundant in the UK on February 1st 2005.

What do I need to declare for UK earning? my redundancy was tax free, but I obviously was paid a months money before that happened.

I thought all this was going to be simple. Using my taxcut software I just plumbed in what my wife and I had earnt and paid in taxes in the US for 2005 and took the standard deduction.

It seems now I was foolish in my presumptions, can anyone help?!

[roombarob 0]

In addition, my UK house finally sold in December, although I got more than I paid, I actually owed money for the secured loan. Do I need to declare anything?

[Yodrak 7]

roombarob,

Do you have the Basic version of the tax software or a 'better' or 'best' version? A basic version may not provide for foreign-earned income as it's not the usual situation for most Americans.

You need to declare your world-wide earnings for 2005 on your US income tax return - one of the 'benefits' of being a US taxpayer. What I don't know, for people from the UK, is if the foreign-earned income exclusion applies or if the terms of a tax treaty between the USA and the UK apply to the income earned in the UK.

Aside from earned income, if had a residence in the UK that you sold in 2005, the capital gain on that transaction is also taxable by the US government.

Yodrak

I have read all of the other posts but I really need help.

My wife (usc) and I (uk) moved to the states in March 2005. I started working in August 2005.

I was actually made redundant in the UK on February 1st 2005.

What do I need to declare for UK earning? my redundancy was tax free, but I obviously was paid a months money before that happened.

I thought all this was going to be simple. Using my taxcut software I just plumbed in what my wife and I had earnt and paid in taxes in the US for 2005 and took the standard deduction.

It seems now I was foolish in my presumptions, can anyone help?!

[roombarob 0]

roombarob,

Do you have the Basic version of the tax software or a 'better' or 'best' version? A basic version may not provide for foreign-earned income as it's not the usual situation for most Americans.

You need to declare your world-wide earnings for 2005 on your US income tax return - one of the 'benefits' of being a US taxpayer. What I don't know, for people from the UK, is if the foreign-earned income exclusion applies or if the terms of a tax treaty between the USA and the UK apply to the income earned in the UK.

Aside from earned income, if had a residence in the UK that you sold in 2005, the capital gain on that transaction is also taxable by the US government.

Yodrak

I have read all of the other posts but I really need help.

My wife (usc) and I (uk) moved to the states in March 2005. I started working in August 2005.

I was actually made redundant in the UK on February 1st 2005.

What do I need to declare for UK earning? my redundancy was tax free, but I obviously was paid a months money before that happened.

I thought all this was going to be simple. Using my taxcut software I just plumbed in what my wife and I had earnt and paid in taxes in the US for 2005 and took the standard deduction.

It seems now I was foolish in my presumptions, can anyone help?!

Yodrak thanks for your reply. I just found on the IRS website that you may be exempt from up to 250k when selling your home and 80k of foreign earned income - but it didnt say whether it was UK or not. How would I find that out? do you know?

[roombarob 0]

I found this link:

http://www.irs.gov/businesses/internationa...d=96739,00.html

[roombarob 0]

and this... helps with capital gains tax

http://www.irs.gov/pub/irs-pdf/p523.pdf

[Yodrak 7]

roombarob,

Tax accountant. Not the ones that staff up seasonally like H&R Block - they know the routine stuff, but may be weak on something unusual like this.

Not that full-time tax accountants are certain to be better - like immigration lawyers or any other service provider, you've got to do due dilligence.

Three tax seasons ago I went to my investment advisor/tax accountant the first year I filed Married-Joint with my alien wife. The new associate he gave my case to didn't have a clue how to treat my wife's foreign-earned income and on the draft return, rather than including it with my income on Line 7 and then excluding it on Line 21, she reported only my income on Line 7 and added my wife's income on Line 21. Fortunately, having been an expat for several years at which time I had a competent tax accountant, I knew the proper procedure and returned the draft with corrections and a completed Form 2555 to include with the return. After fixing their mistakes, they had the nerve to add the cost of the additional form to their bill. Needless to say I have not visited that firm again.

However, I have no idea how to handle the various forms of foreign unearned income such as profit on the sale of a home.

Yodrak

roombarob,

Do you have the Basic version of the tax software or a 'better' or 'best' version? A basic version may not provide for foreign-earned income as it's not the usual situation for most Americans.

You need to declare your world-wide earnings for 2005 on your US income tax return - one of the 'benefits' of being a US taxpayer. What I don't know, for people from the UK, is if the foreign-earned income exclusion applies or if the terms of a tax treaty between the USA and the UK apply to the income earned in the UK.

Aside from earned income, if had a residence in the UK that you sold in 2005, the capital gain on that transaction is also taxable by the US government.

Yodrak

I have read all of the other posts but I really need help.

My wife (usc) and I (uk) moved to the states in March 2005. I started working in August 2005.

I was actually made redundant in the UK on February 1st 2005.

What do I need to declare for UK earning? my redundancy was tax free, but I obviously was paid a months money before that happened.

I thought all this was going to be simple. Using my taxcut software I just plumbed in what my wife and I had earnt and paid in taxes in the US for 2005 and took the standard deduction.

It seems now I was foolish in my presumptions, can anyone help?!

Yodrak thanks for your reply. I just found on the IRS website that you may be exempt from up to 250k when selling your home and 80k of foreign earned income - but it didnt say whether it was UK or not. How would I find that out? do you know?

[roombarob 0]

Thank you very much for your post. It looks like I am taxed like a citizen due to my greencard, which is fine, but I would have january earnings to declare (can i still exclude those later on the form?). I also read that I need to own and live in my house for 2 years to be exempt from capital gains up to 500k filed jointly. Few.

I guess I need to work out exactly what forms I need to file. I presume a 1040 + something else to declare worlwide income and the waiver to be taxed a usc.

[zyggy 9]

Thank you very much for your post. It looks like I am taxed like a citizen due to my greencard, which is fine, but I would have january earnings to declare (can i still exclude those later on the form?). I also read that I need to own and live in my house for 2 years to be exempt from capital gains up to 500k filed jointly. Few.

I guess I need to work out exactly what forms I need to file. I presume a 1040 + something else to declare worlwide income and the waiver to be taxed a usc.

The IRS has a field office at the London Embassy. You may want to contact them there about what is required. I'm sure that would have intimate knowledge.

[Yodrak 7]

roombarob,

Yup - all US taxpayers are treated equal, citizen or not. Don't even need a 'Green Card' to get equality in this arena!

Yodrak

.... It looks like I am taxed like a citizen due to my greencard, .....

[clloyd 0]

Form 2555 and Form 1116.

No such form exists for a "waiver" for what you speak of. Since you meet substantianal presence test for tax year 2005, there is no choice to make.

[roombarob 0]

Form 2555 and Form 1116.

No such form exists for a "waiver" for what you speak of. Since you meet substantianal presence test for tax year 2005, there is no choice to make.

Thank you. So i do those forms plus the 1040 as normal?