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Topic: foreign income and tax form/form 1116  (Read 1812 times)

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foreign income and tax form/form 1116
« on: April 26, 2013, 06:54:26 PM »
I am sure this is an easy question but I just don't know the answer. 

Will I get a form stating how much I have earned and how much tax I have paid?  If so when and how will I get it.  I am also have a hard time understanding form 1116.  Any help would be appreciated.


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Re: foreign income and tax form/form 1116
« Reply #1 on: April 26, 2013, 07:26:23 PM »
A form from who exactly? If you mean your UK employer, then no, at least not one that you can use for the IRS. The UK tax year runs from 1 April while the US' runs from January 1st.


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Re: foreign income and tax form/form 1116
« Reply #2 on: April 26, 2013, 07:43:28 PM »
What do I need to give the IRS?  How do I get it?


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Re: foreign income and tax form/form 1116
« Reply #3 on: April 26, 2013, 07:45:42 PM »
You won't get anything. You just calculate how much you were paid and how much you paid in taxes.


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Re: foreign income and tax form/form 1116
« Reply #4 on: April 27, 2013, 07:00:43 AM »
That was helpful.  Thank you, Geeta.  So I just use my end of December pay stub?


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Re: foreign income and tax form/form 1116
« Reply #5 on: April 27, 2013, 09:16:23 AM »
You won't have a paystub either; as here in the UK we all have payslips. ;)

Yes, you take your December 31st payslip and add on January, February and March - and then adjust the pay if necessary for any amounts not pre-tax for US purposes such as UK pension contributions.


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Re: foreign income and tax form/form 1116
« Reply #6 on: April 27, 2013, 10:55:46 AM »
I am also have a hard time understanding form 1116.  Any help would be appreciated.

The two following links may help.

From ACA:
http://americansabroad.org/files/3913/3589/8026/foreigntaxcreditadams.pdf

From the IRS:
http://apps.irs.gov/app/vita/content/24/24_01_005.jsp?level=international



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Re: foreign income and tax form/form 1116
« Reply #7 on: April 28, 2013, 08:10:27 AM »
Thank you all for your help.  OAP, thank you for the links!  I haven't seen those so I hope they will be helpful especially for the 1116 form. 

PS.  My husband's P60 End of the year certificate came in the mail yesterday.  Looks like a W2.   


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Re: foreign income and tax form/form 1116
« Reply #8 on: May 08, 2013, 07:43:41 AM »
An experienced accountant just told me that I use the income I made in the UK until December 31 and not March 31.  Just FYI for others who may be reading this posts on this tread. 


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Re: foreign income and tax form/form 1116
« Reply #9 on: May 08, 2013, 09:17:28 AM »
This is correct. We have already agreed that one needs to look at UK payslips up to 31 December and adjust if necessary to figure taxable income for US income tax reporting.


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Re: foreign income and tax form/form 1116
« Reply #10 on: May 10, 2013, 07:23:47 AM »
You won't have a paystub either; as here in the UK we all have payslips. ;)

Yes, you take your December 31st payslip and add on January, February and March - and then adjust the pay if necessary for any amounts not pre-tax for US purposes such as UK pension contributions.

This is correct. We have already agreed that one needs to look at UK payslips up to 31 December and adjust if necessary to figure taxable income for US income tax reporting.

Why would you add on January, February and March then?  And why does it matter that the UK tax year ends 1 April? This is the source of my confusion.


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Re: foreign income and tax form/form 1116
« Reply #11 on: May 10, 2013, 09:40:36 AM »
Why would you add on January, February and March then?  And why does it matter that the UK tax year ends 1 April? This is the source of my confusion.

The year to date figures on your UK pay slip Dec 31st do not include Jan, Feb and March.

I think this is what he meant.
Dual USC/UKC living in the UK since May 2016


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Re: foreign income and tax form/form 1116
« Reply #12 on: May 10, 2013, 10:06:21 AM »
The UK tax year runs April to April, but the US tax year runs for the calendar year. That means that your P60, which is kind of like the W2, gives you the wrong time period for calculating US taxes. If you take your December payslip total, that will show the total for April-December, and then you have to manually add on the amounts for Jan-March to get the right amount to put on the 1040.
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Re: foreign income and tax form/form 1116
« Reply #13 on: May 10, 2013, 10:38:40 AM »
You beat me to it DrSuperL99 and durhamlad. Allow me to go one step further with another of my patented long and boring posts.

US tax year - Jan. 2012 to Dec. 2012
UK tax year(s) - (1) April 2011 to April 2012, AND (2) April 2012 to April 2013

For a US tax return for 2012, take Jan. 2012, Feb. 2012, and Mar 2012 from UK tax year (1). Then add April 2012 to Dec. 31, 2012 from UK tax year (2). This is the reference [(2)] to your Dec. payslip.

Jan. 2013, Feb. 2013, and Mar. 2013 from UK(2) will be used next year for your 2013 US tax return.



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Re: foreign income and tax form/form 1116
« Reply #14 on: May 10, 2013, 08:01:35 PM »
Oh  :o, I get it now!!! We have only been here since October so wasn't even thinking about how it would work next year for us.  Thank you !!!


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