Hello
Guest

Sponsored Links


Topic: Estimated US Tax Payments for UK/PAYE Income?  (Read 1386 times)

0 Members and 1 Guest are viewing this topic.

  • *
  • Posts: 29

  • Liked: 0
  • Joined: Mar 2011
Estimated US Tax Payments for UK/PAYE Income?
« on: March 09, 2011, 07:55:00 PM »
I couldn't seem to find any topics on this.   For those US citizens who are paid as "local" UK employees through the PAYE system (and therefore no US taxes are being withheld), do you need to pay estimated US taxes by April 15?  

In my case, I am going to be resident but not ordinary resident, paid as a local, and plan to make use of foreign tax credits.  I must be missing something, as it seems counter-intuitive to have to make estimated payments, then receive a large refund once you file and claim your foreign tax credits.
« Last Edit: March 09, 2011, 08:04:56 PM by EJ »


  • *
  • Posts: 29

  • Liked: 0
  • Joined: Mar 2011
Re: Estimated US Tax Payments for UK/PAYE Income?
« Reply #1 on: March 09, 2011, 08:07:58 PM »
I think I've answered my own question.  Please correct me if I'm wrong, but I imagine the PAYE system will show you the amount of UK tax that one has paid, so it will be easy to estimate the tax credits on the US side at the time one prepares his/her US return.


  • *
  • Posts: 428

  • Liked: 3
  • Joined: Aug 2009
  • Location: Berlin
Re: Estimated US Tax Payments for UK/PAYE Income?
« Reply #2 on: March 10, 2011, 02:18:33 PM »
It depends on your employer of course, but usually your payslip will show the amount of tax taken off through PAYE, which you can use to estimate foreign tax credits.

Most people end up owing very little if any US tax on their UK earnings. You should, however, estimate the amount of tax you may owe on any US source income, and make estimated tax payments as appropriate.


  • *
  • Posts: 1952

    • unabridged opinions
  • Liked: 1
  • Joined: Feb 2008
  • Location: Manchester
Re: Estimated US Tax Payments for UK/PAYE Income?
« Reply #3 on: March 10, 2011, 02:41:39 PM »
It's fairly simple, but make sure you pay attention to the payslips as the UK is on a different financial year than they US. Not that you would necessarily make that mistake, but it's sort of annoying anyway!
Good luck!


  • *
  • Posts: 29

  • Liked: 0
  • Joined: Mar 2011
Re: Estimated US Tax Payments for UK/PAYE Income?
« Reply #4 on: March 22, 2011, 03:25:21 PM »
It depends on your employer of course, but usually your payslip will show the amount of tax taken off through PAYE, which you can use to estimate foreign tax credits.

Most people end up owing very little if any US tax on their UK earnings. You should, however, estimate the amount of tax you may owe on any US source income, and make estimated tax payments as appropriate.

Are US taxpayers only required to pay estimated US taxes on US sourced income?  Meaning, if I work 100% of my time in the UK, I do not have to make such payments, but if I spend a few weeks working in the US (and am paid in the UK), I might need to may estimated payments?


  • *
  • Posts: 428

  • Liked: 3
  • Joined: Aug 2009
  • Location: Berlin
Re: Estimated US Tax Payments for UK/PAYE Income?
« Reply #5 on: March 22, 2011, 03:43:30 PM »
Are US taxpayers only required to pay estimated US taxes on US sourced income?  Meaning, if I work 100% of my time in the UK, I do not have to make such payments, but if I spend a few weeks working in the US (and am paid in the UK), I might need to may estimated payments?
It actually doesn't matter at all whether your income is US or UK sourced. Just estimate your final tax due on your return (taking into account all deductions/credits/exclusions/other circumstances which might lower your tax).

Use this page to help determine whether you should be paying estimated taxes in your individual situation, but speaking generally, if you have very little or no tax liability, you don't need to be paying estimated taxes. This would hold for most people working 100% of the time in the UK.


Sponsored Links





 

coloured_drab