I have lived in the US since 2001 and am planning to become a dual citizen. I would like to split my time between the US and the UK, but my husband is planning to remain in the US until he retires in approximately 8-10 years' time. I am self-employed and have clients in both countries. Ideally I would like to spend around 6-8 months in the UK, the rest in the US.
I know that I will continue to have to file tax returns in the US, but what about the UK? How can I ensure I do not get taxed twice? I looked at the dual taxation information
http://www.hmrc.gov.uk/helpsheets/hs302.pdf [nofollow] but I am more confused than ever. Should I file taxes on just my UK income in the UK, and then declare the same on my US return and claim a deduction for the tax paid in the UK? Should I continue to file my US taxes 'married filing jointly' or separately?
And what about National Insurance? And state taxes in the US? And SS/Medicare taxes? HELP!!!
If someone could point me in the right direction, I would be extremely grateful. I called the tax helpline but they were worse than useless. The woman I spoke to actually asked me whether I was still a British citizen!
Many thanks to anyone who can help.
