Hello
Guest

Sponsored Links


Topic: An Inexpensive Tax Preparer in London?  (Read 1264 times)

0 Members and 1 Guest are viewing this topic.

  • *
  • Posts: 32

  • Liked: 0
  • Joined: Sep 2013
An Inexpensive Tax Preparer in London?
« on: February 22, 2015, 06:33:00 PM »
After spending too much time this weekend trying to file electronically with a bunch of different freefile programs  and not understanding what my income is for the last year in the UK, I am looking for an inexpensive preparer located in London.  My taxes should be amazingly easy, so paying $300 seems ridiculous. 

I just don't understand if I am to report my income for the last year, with the UK taxes deducted, my gross or my take home?  Cuz it doesn't seem to have a place to input UK tax deductions  Also, the tax year in the UK is different, so when I look at my income stub from Dec 31, its missing Jan- April 2014, so do I also need to go back and add Jan, Feb, March and April 2014 to it?

Its just confusing and annoying, I make such little money to begin with, I am not going to pay hundreds to have someone file my pathetic little taxes just because I am confused!

Any recommendations would be greatly appreciated!


  • *
  • Posts: 13025

  • Liked: 4
  • Joined: Oct 2005
  • Location: Washington DC
Re: An Inexpensive Tax Preparer in London?
« Reply #1 on: February 22, 2015, 06:52:01 PM »
It's very unlikely you will find a tax preparer in London who will prepare your tax return for less than $300. You shouldn't find it too difficult to file taxes on your own. You will need to total up your UK salary from Jan 1 - Dec 31, 2014. And you don't enter your UK taxes paid anywhere; you will need to determine what amount of your salary will be exempt from US taxes.


  • *
  • Posts: 1912

  • Liked: 58
  • Joined: Apr 2008
Re: An Inexpensive Tax Preparer in London?
« Reply #2 on: February 22, 2015, 10:59:46 PM »
It's very unlikely you will find a tax preparer in London who will prepare your tax return for less than $300. You shouldn't find it too difficult to file taxes on your own. You will need to total up your UK salary from Jan 1 - Dec 31, 2014. And you don't enter your UK taxes paid anywhere; you will need to determine what amount of your salary will be exempt from US taxes.

Yep. Just add up you total gross wages earned between Jan 1 and Dec 31st. That will go on 1040, line 7. Then fill out the other income categories. If you qualify for the Foreign Earned Income Exclusion fill out form 2555 and then enter the amount of earned income you can exclude on line 21 in brackets to indicate a subtraction and put a note "Form 2555" next to it. Then add up all your income.....remembering to subtract the amount you entered on line 21 and enter it on line 22. This is your US taxable income.

If you need to apply foreign tax credits you will need to fill out a form 1116. Enter your UK gross wages and other income as before, but include the result of the 1116 on line 48 of the 1040. This will be the credit you get for the UK taxes you've paid and will be taken off your US taxes.....it will probably reduce them to zero.


  • *
  • Posts: 1260

  • Liked: 63
  • Joined: Jun 2011
  • Location: Congleton, Cheshire
Re: An Inexpensive Tax Preparer in London?
« Reply #3 on: February 23, 2015, 07:38:03 AM »
I concur - it's likely a super simple return with stress making it seem difficult.

Think back to your US return - you always reported gross wages, not net. Same with your UK income if you're on PAYE. It's still gross, converted to US$. Then, as nun says, either go the 'earned income exclusion' route or take a credit for UK tax paid, whichever gives you the better end result. As UK tax is typically higher than US tax on the same income, you will likely own $0 to the US.
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!


Sponsored Links