US Taxes - 2017

[Chris H]

Hi folks,

My wife and I got through the GC Lottery in DV2017. We activated our visas in August last year (2017) and we are moving permanently to the US once we resolve a family situation at home (Northern Ireland UK).

Aside from our Green Cards going missing in the post (chasing that up) I am also aware that the tax deadline approaches. I was wondering could I get help from someone preferably from the UK who could point me in the right direction for filing our taxes for the first time? I am aware that there is a tax treaty between the US & UK but unaware of how to benefit from this if we do on our UK incomes.

Thanks,

Chris

 

[SusieQQQ]

Hi folks,

My wife and I got through the GC Lottery in DV2017. We activated our visas in August last year (2017) and we are moving permanently to the US once we resolve a family situation at home (Northern Ireland UK).

Aside from our Green Cards going missing in the post (chasing that up) I am also aware that the tax deadline approaches. I was wondering could I get help from someone preferably from the UK who could point me in the right direction for filing our taxes for the first time? I am aware that there is a tax treaty between the US & UK but unaware of how to benefit from this if we do on our UK incomes.

Thanks,

Chris

You can also file for an extension (I’m not sure when the deadline is for that) - might be easier to do that and wait till you are in the US where there are many more loca specialists in tax to help file the return.

 

[EmilyW]

I'd second Susie's suggestion. We did that and it made things ALOT easier.

 

[abumiqdad]

You might need to read up a bit on that - mainly the tax treaty between USA and the UK - and there should not be double taxation.

Still for someone who had not reside longer that 1 month in the USA for the whole year (any duration that starts or begin in 2017), you can get FOREIGN INCOME TAX EXCLUSION.

Also, for filing overseas, you get automatic 2 months extension.

https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return and pay any amount due without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15. If you qualify for this 2-month extension, penalties for paying any tax late are assessed from the 2-month extended due date of the payment (June 15 for calendar year taxpayers). However, even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return (April 15 for calendar year taxpayers).

 

[SusieQQQ]

You might need to read up a bit on that - mainly the tax treaty between USA and the UK - and there should not be double taxation.

Still for someone who had not reside longer that 1 month in the USA for the whole year (any duration that starts or begin in 2017), you can get FOREIGN INCOME TAX EXCLUSION.

Also, for filing overseas, you get automatic 2 months extension.

https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return and pay any amount due without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15. If you qualify for this 2-month extension, penalties for paying any tax late are assessed from the 2-month extended due date of the payment (June 15 for calendar year taxpayers). However, even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return (April 15 for calendar year taxpayers).

While there shouldn’t be double tax as such if there’s a treaty, bear in mind that some things might get more favorable tax treatment (lower or no tax)in a home country but be taxable income in the US.

While the automatic extension might be 2 months I think you can request till October if you file for one. (Not sure if that’s changed the past couple of years, but that’s what we did a couple of years back. No problem at all, it’s just a form.)

Also there’s a limit to the foreign income exclusion, I believe it was around $100k last time I looked.