US/EU citizen, retired, arrived April 30, 2017. My financial situation is pretty simple compared to most cases I'm reading about here, but I would appreciate a check by someone who has done this before.
I assume that on the UK taxes, which run April 1 2016 - March 30, 2017, I owe nothing as we were not in the UK. US taxes for 2017 I have a handle on, I think.
Sadly, no large moving expense deduction because I have not found a full-time job within the required 3 months of the move.
I will have no foreign earned income tax credits (unless I have a stroke of luck and find work).
So it looks like a straight TurboTax 1040. I am completely supporting my adult child, who is in full-time higher ed, but won't take that on my US taxes this year unless when compared with what she'd get back on her refunds the allowance on mine would result in a higher refund.
For the UK side for the April 2017-March 2018 year I will have pension and some small IRA distributions to report. I was on paid vacation (burning through my accrued vacation time) for the month of May. Would I report that month as work income?
I believe they've done away with the 10% disregard for pensions now, so I would have only the standard allowance.
I would deduct from HMRC the tax I paid to the IRS/state tax board for the months of April 1 2017-Dec 31 (basically, 3/4ths of the paid tax amount) so it doesn't get double-taxed? Or is it better to ask the IRS for extensions and then take the deduction for tax paid to HMRC off the IRS tax return (although it would still need to just be for 3/4ths of the amount - covering up to Dec 31 2017?)?
My pension is from a state-funded University in the USA. I wrote to the HMRC about a year ago, asking if the provisions of the double-taxation treaty would consider this as a state-funded pension taxable in the state in which it was paid (and not in the UK) and got a response of yes. (I've kept that letter.) So would I need to report that pension to HMRC and then claim its exclusion based on the provisions of the treaty, plus my IRA distribution, and expect that only the IRA income would be taxed, if it's over the personal allowance? Or would I not even report the pension income to HMRC?
I am completely supporting my adult daughter. Am I correct in thinking that, unlike the USA system, there is no sort of allowance for her in the UK? As she is a full-time student, we think she will have had no earned income (or income of any kind) for the 2017/18 year.
Since I will have had income while in the UK (the University Pension and IRA distributions) from April 2017-March 2018, should I do anything prior to Dec 31 this year (2017) or would that all be dealt with next year?
Sorry, reading all these posts online has kind of left me with a vague understanding of how I ~think~ it works, but I want to make sure I'm doing it all correctly.
