Where am I a "tax resident?"

We are applying to add my name to a joint savings account and I've been asked where I have tax residency. I've been living in the UK for a year and a half so I know I meet the US's definition of nonresident. However, since I am still liable to the US for taxes, am I still considered tax resident?


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We are applying to add my name to a joint savings account and I've been asked where I have tax residency. I've been living in the UK for a year and a half so I know I meet the US's definition of nonresident. However, since I am still liable to the US for taxes, am I still considered tax resident?

You are ordinarily resident in the UK and, therefore, have UK tax residency (unless you're doing something fancy with non-dom status). It is the primary place where you pay your taxes -- any tax payments related to the US are citizenship based, above and beyond your residency-based taxation.

Thanks!


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You are ordinarily resident in the UK and, therefore, have UK tax residency (unless you're doing something fancy with non-dom status). It is the primary place where you pay your taxes -- any tax payments related to the US are citizenship based, above and beyond your residency-based taxation.

We'll be in a similar situation opening new savings accounts in the UK while having to file US taxes since we are citizens so it is good to have this warning of the questions to expect.

It is interesting that this UK bank is asking you only for one "tax residency". In onboarding questionnaires I have seen the bank asks for all countries in which you have responsibilities of tax reporting. This means a US person in the UK has to select both UK and US. The bank wants to know you have US tax reporting responsibility so they can make sure to submit FATCA reports about you to HMRC.

It sounds as if you are a UK tax resident, but you could well be non-domiciled and so might be able to avoid UK tax on some of your foreign source income.

Here is a useful guide with a tool to help determine your tax residency status.

https://www.gov.uk/tax-foreign-income/overview

If you are a US citizen you are always liable to US tax on your worldwide income.

I know I'm liable for US tax. I live in the UK on a spouse visa. The bank does have an option for putting both US and UK. I reckon I may put both to avoid falling afoul of FACTA and whatnot.


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I know I'm liable for US tax/ filing. I don't have any income outside the UK. I live here on a spouse visa. The bank does have an option for putting both US and UK. I reckon I may put both to avoid falling afoul of FACTA and whatnot.


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I know I'm liable for US tax. I live in the UK on a spouse visa. The bank does have an option for putting both US and UK. I reckon I may put both to avoid falling afoul of FACTA and whatnot.


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Be careful here. You are probably UK tax resident, but equally you are probably not US resident as it looks like you meet the criteria for US "bona fide foreign residency" which is a critical status for US tax. I would not declare yourself as a US tax resident on any official document..... because you are NOT. When official documents ask me dumb questions I either go along with the dumbness and answer the questions they ask, or I add my own corrections. So I think you shpuld just fill in UK resident and leave the US resident blank. You might inform the bank you are a US citizen if you want....but you are NOT a US resident.

As an aside have you considered the US tax consequences of being a joint account owner with your UK spouse.

Ha. Well this just seems to get less and less clear. Though what you've said does make more sense as I've already declared my citizenship elsewhere on the form.

Which tax implications are you referring to? We aren't planning on putting much money in it. Honestly we are only opening it  so we can deposit a check we got as a wedding gift that's made out to both of us. Four bank refused to just put it in one of our accounts, which I found odd. Any future ISA's and such will likely be in my husbands name only to keep the IRS away from him. Should I be concerned about an account that's likely to never hold more than a few thousand pounds?


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A joint UK bank account with a balance less that $10k is not much of an issue because there's no US reporting required and you'll only have interest to declare on your US tax return. But don't make a habit of having joint accounts/finances with your UK spouse. I assume you will be filing "married-separate".

So to summarize you at most likely a UK resident, non-dom and NOT a US resident.


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Thanks for the info! It's very much appreciated.


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Thanks for the info! It's very much appreciated.


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FYI if you were to file jointly with your UK spouse he would have to pay tax on any ISAs and if he owns UK investments funds there would be PFIC filing and tax to pay too. He might have to file FBAR and 8938 forms and possibly foreign trust forms.

Don't worry. Definitely filing separately.


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Don't worry. Definitely filing separately.


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GOOD!