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Topic: Specific high income/partial year tax question...  (Read 1230 times)

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Specific high income/partial year tax question...
« on: November 02, 2008, 08:57:17 PM »
So I have a specific question: I feel like the situation below is going to cause me to be put in a position where I'm taxed a bunch for this year.

I worked half the year in the US and because of a bonus paid in Jan from last year made about 150k in first 6 months of the year. I then came over here in July to work for a new company and am hoping to make about 80k pounds before Dec of this year (becaues my bonus is paid out before end of Dec).

I've filled out my p86 form and plan to leave the UK next year..

Will I get taxed a bunch because I've made a decent amount this year? I've just had my UK pay going into a UK bank account.  I have no other homes/sources of income/etc to speak of.

is this worth getting a professional involved? I'd rather not unless it might save me $ in the end since they are pretty expensive.

thanks


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Re: Specific high income/partial year tax question...
« Reply #1 on: November 06, 2008, 06:34:07 PM »
Over 70 views and no one has any ideas??


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Re: Specific high income/partial year tax question...
« Reply #2 on: November 06, 2008, 07:04:24 PM »
Will I get taxed a bunch because I've made a decent amount this year?

What country are you asking about?


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Re: Specific high income/partial year tax question...
« Reply #3 on: November 06, 2008, 07:14:02 PM »
Well I assume I'll get taxed the normal rate in the UK (pretty straightforward rules), but I mean extra taxes by the US  (yes, I know I should be able to offset most of my taxes there, but even an extra 5% of 100k is quite a chunk of change)


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Re: Specific high income/partial year tax question...
« Reply #4 on: November 06, 2008, 08:59:27 PM »
Well I assume I'll get taxed the normal rate in the UK (pretty straightforward rules), but I mean extra taxes by the US  (yes, I know I should be able to offset most of my taxes there, but even an extra 5% of 100k is quite a chunk of change)
Are you resident in the UK for tax purposes?  Are you ordinarily resident in the UK for ta purposes?  Where are you domiciled? Are you claiming the split year concession?  Are you contributing to a UK pension plan? Are you claiming the remittance basis?  Which State are you from?  Are you still State resident?  Are you claiming housing costs in the UK? the US?

There are just far too many variables. A dual qualified professional would be able to steer you to the optimum answer but given your reluctance to use a professional for this you may want to call the IRS and HMRC to see what they suggest.


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Re: Specific high income/partial year tax question...
« Reply #5 on: January 04, 2009, 02:43:00 PM »
I would be willing to use a professional (I've rethought it and it's probably worth doing this right). Guya, I've tried private messaging you to see if I could use your services. Can you please contact me?

also, are there any tax implications of converting pounds to dollars and moving them to my US account? this is money I've earned here in the last few months.

thanks.


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