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Topic: Living in Uk..filing US taxes..can anyone help?  (Read 1304 times)

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Living in Uk..filing US taxes..can anyone help?
« on: January 13, 2007, 05:55:20 PM »
Hi,
I've been trying to look up information online, but haven't been able to find any for my situation. I hope someone has been in the same situation, or has an answer for me!
I moved to the UK in May 06 and started working in the UK in June.  Before this, I worked in the US until I moved.  I did not make over 80,000$ in 2006.

So, I need to file, but am unsure of what to do.  Am I considered a UK resident?  Yes, I still have my Illinois driver's license and a US bank account (to pay a credit card I still have there), but I'm not earning interest on anything, so I assume the government isn't interested in this.
Can anyone give me advice?  I really don't have the £ right now to hire anyone, but may need to if I can't figure out what to do.

Thanks, I really appreciate it!


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Re: Living in Uk..filing US taxes..can anyone help?
« Reply #1 on: January 14, 2007, 12:27:12 PM »
You are considered a resident as of the date of your arrival (usually).  That means you are part-year resident from May 06 onwards.

US filing:  Form 1040, 2555, and TD F 90-22.1.  If your income from the UK was greater than $80,000 (annualized), or if you had UK tax withheld on a UK bank account, then you may also need Form 1116.  You can try an off-the-shelf programme for your first level of attack if you wish.

UK filing:  The tax year is Apr-Apr, so the 06-07 year ends Apr 07.  The withholding in the UK is usually accurate, but not always.  Check to see if your  tax was withheld correctly; you can try HMRC's online tax filing for this purpose.  If you have a refund, they have a special form for applying for refunds.  If you owe, you file Form SA.

This is simplified advice.  The actual advice I would give if you were to see me is much more complicated and has many caveats and levels. The purpose of this email to be a starting point for you, not an end-all-&-be-all. 

For both the US and the UK, don't finalize any online/web-based work until you are confident it is correct.  Many US and UK accountants will review your self-prepared work for less than the cost of having them prepare the return themselves.
Liz Z i t z o w, EA
British American Tax


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Re: Living in Uk..filing US taxes..can anyone help?
« Reply #2 on: March 25, 2007, 10:11:32 AM »
Do I need to "prove" to the IRS how much I earned in the UK, or is my calculations enough for them? 

Also, can anyone tell me if they know of a tax advisor in Glasgow that would be knowledgable about US/UK taxes?  I want to try them on my own, but I need someone to look over them, because I think I'll be getting a tax refund this year (finally)!


Thanks :)


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Re: Living in Uk..filing US taxes..can anyone help?
« Reply #3 on: March 25, 2007, 04:24:27 PM »
You just supply the end figures on your tax return.  You need the backup supporting documents in the not-very-likely event you are audited.  Even though it isn't likely, if it does happen, you'll be quite frustrated trying to recreate your documents and records; so keep them for seven years just to be 100% safe.  It's unlikely you would be audited after seven years.
Liz Z i t z o w, EA
British American Tax


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