Repatriation Tax question

We had an accountant all lined up to help us with some tax questions (we were also consulting them on behalf of David's company) but yeah... we're not prepared to pay the $3,000 he quoted us yesterday.

David claimed residency in the US (with his green card) October 2004. So I assume he needs to file in the US for 2004, yes? If so, just using the normal 1040 form, or is there something special for non US citizens? (He's permanent resident).

And, does it matter that even though he claimed residency in October, we didn't move to the US until December? It is still 2004, but what I mean is that he didn't have any US income in 2004, it all originated in the UK (which we can prove).

Make sense?

Hi Sara,

Even though David was not earning income in the US in 2004, I would still take the advice of an accountant.   

I would advise that you find another accountant.  My DH is an independent contractor so our taxes aren't  straight forward.  We're lucky to have found an accountant who is British and understands the implications of our international situation.  Plus we like him and the way he talks to you like a normal person.

 $3,000 seems steep'; I'd shop around for somebody else.  But definitely get advice if you're uncertain of your filing status.

This is the 4th accountant I've contacted, and I'm running out of time.  :\\\'( No one has seemed interested in helping, though I know March and April are really busy I've been getting brushed off like crazy.

In the short term, can you file an extension, just to buy a bit of time until you sort it out?  The accountants should have a bit more time after the 15th...

Also, is there anybody who can offer a referral?  Perhaps somebody David works with has a good accountant?

Nope on the referral front, the only guy David works with came over with us in December, and they are English as well and plus they have a totally different visa to David. One of them was a referral from my mom and dad's accountant as his brother lives in Kansas City and works as a cpa, but their firm wouldn't take us on. I'm doing as much research online as I can, I just don't want to screw things up, you know?

I know exactly how you feel.  There are lots of little things that you may not even be aware of.

I wish I could give you some concrete advice, but everybody's circumstances are so different.  Tony is self-employed, and has recently incorporated, so our situation is different to yours.

Perhaps filing an extension would be worthwhile, just to buy yourself some more time.

Good luck Sara.  You will get it sorted out. 

Right. I moved this back in here in case anyone else is wondering.

I *finally* found an accountant who does international tax filings. She and I had a chat on the phone and this is what she suggested:

That I file an extension for David & I for 2004.

That after April 15, I continue to look for an accountant because really, this is too much
for my little brain. (She didn't say that, but you know.

That our situation is less complicated in one area than I had thought: we have our UK bank accounts still open but we don't have to do any kind of reporting on them because we've got elss than 10,000 in them. (Um... LOTS less)

That they could do the work for us and it will still be quite expensive, but less than the other guy. To keep looking for a cheaper quote but if I can't ifnd it, they will be happy to help.
 

Hi Marlespo,

Maybe Helen can help you with this issue. If your husband had no US income for 2004 I dont see why he would have to file a return? I dont know what the threshold for even US citizens but its somewhere like less than 8k and you dont have to file? 8k is probably a bit off the mark but its low...so if he had zero US income then I dont see why he would have to? Maybe that is a bit to simple??

On a separate note, my husband claimed residency last month but both of us are still in the UK for a bit longer.....therefore no US earned income . I plan to file (married filing seperate) as a formality, but he will have nothing to do with my filing.

Keep us posted!

Julie

Thanks Julie. That is really where the accountant comes in, because it doesn't seem to me like he'd have to file since there was no US income, but then again it seems like he would have to file because he's a new resident and they just want the paperwork, even if it is filled with a load of zero's, you know? We claimed residency in Indiana, moved to Missouri, and he works in Kansas, he works for a UK company that is just now setting up US operations (with him) and they didn't really get their ducks in order so there are weird complications about his income, and blah! Blah blahblah, blah blahblah blah!

and blah! Blah blahblah, blah blahblah blah!

I know exactly what you mean.

I contacted my local Jackson Hewitt office earlier as well on the off chance that they could refer me somewhere, and it turns out one of the guys working for them has dealt with international tax. They called me back and asked a load of questions, and hopefully they can help me out for less than it will cost to sell my soul. They also suggested getting an extension, so I'll get on that tomorrow.

Marlespo,

Glad to hear that someone may be able to help you out at a reasonable price! I can't imagine Jackson Hewitt being OTT like a private accountant.

Let us know what they come back to you with!

Julie