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Topic: Should we close our US bank accounts?  (Read 645 times)

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Should we close our US bank accounts?
« on: November 29, 2010, 10:48:36 PM »
Hi all,
My husband and I just moved over to the UK about four weeks ago. He's is from here, but we have been living in Chicago for the past four years while we went to school. I'm originally from Utah, but I think my domicile status changed when I got my IL driver's license and we rented our apartment.
I'm wondering if it would be a good idea for us to close out our US bank accounts, so that we don't run the risk of getting taxed extra on them? We kept a few open in Chicago, and I have one open in Utah, figuring that it would be easier to simply keep some money in the States when we went back to visit, rather than dealing with currency exchange and all of that.
I'm just now looking into taxes and things (I didn't realize Americans still had to file when living abroad. Lovely.) so if anyone has an easy, step-by-step guide to that, it would be much appreciated.
I haven't worked in Utah for three years, but both my husband and I were working in Illinois up until about a month before we moved. Also, I am self-employed, and have kept the same clients since I moved.
I know this post is all over the place, but we're having a baby in June, and I figured I should probably try to get this straightened out sooner rather than later.
Thanks!
Married my best friend- 31/5/2008
Moved to England- 1/11/2010
Expecting our son, Jameson!-22/6/2011
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http://www.adarkenedmirror.blogspot.com


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Re: Should we close our US bank accounts?
« Reply #1 on: November 30, 2010, 01:00:44 AM »
As an American you will always be taxed, or more precisely you will always have to file a US tax return, however you won't be double taxed while living in the UK. So you won't be taxed extra on US bank accounts and if you intend on visiting the US, yes they are useful.


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Re: Should we close our US bank accounts?
« Reply #2 on: December 01, 2010, 12:50:39 PM »
Hi Camarinadoo,

Your tax situation has changed and is more complex than you currently realise and are slowly discovering!

You're tax domicile doesn't change with a move from Utah to Illinois, in short you have 'American Tax domicile' so you are subject to the US taxation system. To change tax domicile to British or anywhere else like a 'tax haven' you'd need to go through much more in depth hoops and Driving Licenses/Renting an Apartment have absolutley no effect.

To answer your topic question, then for the moment yes, keep your US bank accounts. Another aspect is that you are self employed and cover clients based in the US (I presume) and are paid in US Dollars?

Take a deep breath, you are also expecting a bundle of joy which is good, however I suggest you contact a good US/UK Tax specialist and you'll need to get everything doen via them as they'll be able to assess your exact situation, any exemptions you may be eligible to etc and reduce the stress of doing everything. There is no easy step by step guide as such, however if you are so inclined, once you research more, discuss with suitable tax specialists etc, you 'might' perhaps be able to calculate, file and return, pay and transfer all your taxes yourself in the longer term.

Guya is one such member here on UKY who may provide those services and information !

Cheers, DtM! West London & Slough UK!
« Last Edit: December 01, 2010, 12:52:26 PM by Dennis the Menace!! »


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