American newly wed arrived in UK and confused about tax...

Hi,

I got married in St.Louis in June then moved here to London with my British husband last month, we're planning to live here for a few years.

I'm currently looking for a job but am confused about what I'll need to do as regarding tax in US/UK when I start earning. I've searched through these boards and elsewhere but haven't found a clear answer.

I currently have a small income in the US (about $15,000) through my family's company that gets paid straight into a 401k and other investments and I'd expect to earn about $35-$40,000 from a job here (if I'm lucky!).

What are the implications of my US income for the UK, and my (potential!) UK income for the US?

Thanks so much,

Jenny Elliott

You don't owe any US tax on your UK income unless you make more than $80,000 in the UK.  File the foreign income form (forget the number) with your return.  You still have to file a return but you shouldn't owe tax.

I'm no help with the questions, but wanted to congratulate you and welcome you to the boards!

Welcome!
1. From a UK tax perspective you are almost certainly not domiciled here, so your US income is not taxable unless/until brought to the UK.
2. From a US perspective you file a 1040 plus a 2555 claiming the foreign earned income exclusion each year.  You also file form TDF90-22.1 each year if your foreign bank accounts hold the equivalent of $10,000.

You may want some advice on getting the UK tax position agreed so that the American income doesn't accidentally become taxable here.

I am possibly movng to UK with a very good job.  I understand that I will not pay taxes on anything under $80K but what about city/state taxes? To further complicate things, my girlfriend is a Brit but who has just gotten her US citizenship and will be movibng with me.  Does anyone know or have a link to someone or somewhere who might know?
Thanks
John

John - Once you move over here city taxes are unlikely.  You might still owe State taxes, but that depends on the rules of the State where you are from. Your girlfriend will also need to file in the US for ever as she is a US citizen, but might still be domiciled within the UK so could have a different UK filing status than you.

The US embassy in London explains the US filiing in a clear straightforward way here: http://www.usembassy.org.uk/irs/irsfaq.htm