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Topic: Paying US taxes- how much?  (Read 1136 times)

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Paying US taxes- how much?
« on: April 13, 2014, 08:35:26 AM »
My husband and I made more than $100,000 (maybe around $110,000) in the UK and I am getting stressed knowing that we will have to pay in but I have no idea how much!  Someone is doing our taxes for us so I am just waiting.  What I don't understand is if we get taxed on the full amount or just taxed on that salary above the limit ($99,000?).  For those who paid in, how much did you have to pay in?  Thanks!


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Re: Paying US taxes- how much?
« Reply #1 on: April 13, 2014, 12:35:30 PM »
In the absence of other information, the best estimate of what you will pay is zero. If you have been paying normal UK taxes, this will exceed the US taxes and so the foreign tax credit will cover it all. Your mileage may vary.


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Re: Paying US taxes- how much?
« Reply #2 on: April 14, 2014, 06:23:55 PM »
I hope you are right (at least close to right).  Are you in a similar situation?


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Re: Paying US taxes- how much?
« Reply #3 on: April 15, 2014, 07:11:02 AM »
Salary (or earned) income is the one part of this that you don't need to worry about. Furthermore, unless you've been doing something unusual, you will probably owe the US little if anything in taxes.

If you feel like stressing, FBAR, FATCA, insane forms, draconian penalties for minor errors, denial of banking services/business opportunities and high tax preparation fees are more worthy targets of angst. All these are more of a problem than the actual taxes. I would pay an annual membership fee to the US just to be rid of these.


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Re: Paying US taxes- how much?
« Reply #4 on: April 15, 2014, 07:48:42 AM »
Salary (or earned) income is the one part of this that you don't need to worry about. Furthermore, unless you've been doing something unusual, you will probably owe the US little if anything in taxes.

If you feel like stressing, FBAR, FATCA, insane forms, draconian penalties for minor errors, denial of banking services/business opportunities and high tax preparation fees are more worthy targets of angst. All these are more of a problem than the actual taxes. I would pay an annual membership fee to the US just to be rid of these.

well said - and add to that, being given incorrect advice by so-called experts who prepare tax returns incorrectly...because the 'experts' so frequently err on the side of caution to minimize THEIR exposure, not the client's..... IMO..
Married December 1992 (my 'old flame' whom I first met in the mid-70s)
1st move to UK - 1993 (Letter of Consent granted at British Embassy in Washington DC)
ILR - 1994 (1 year later - no fee way back then!)
Back to US in 2000
Returned to UK July 2011 (Spousal Visa/KOL endorsement)
ILR - September 2011
Application for naturalization submitted July 2014
Approval received 15-10-14; ceremony scheduled for 10 November!
Passport arrived 25 November 2014. Finally done!


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