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Topic: Sorry if this has been asked before  (Read 1313 times)

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Sorry if this has been asked before
« on: February 10, 2016, 07:16:04 AM »
Hi everybody

   Just had a question about taxes. I've looked through the board for an answer but I haven't seen one. Maybe I just missed it,I'm not sure.

   I've lived in the UK since 2004,done taxes for all that time. But now I'm wondering if I've done them right. As I only work part time,I also receive working tax credits,housing benefit and child tax credits.

    Question is, am I meant to report that on my US taxes? Never really thought about it before,as it isn't taxed in the UK as far as I know. But I'm just now in the process of becoming a UK citizen and I might someday choose to renounce my US citizenship and want my tax history to be right and taken care of if that's what I decide to do
   
     Thanks for any and all help,and again,apologies if this has been asked over and over again



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Re: Sorry if this has been asked before
« Reply #1 on: February 10, 2016, 07:56:47 AM »
Yes you should include non taxable UK benefits on your US tax return so the IRS can tax them. It's a really stupid and mean thing, but that's the rule.


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Re: Sorry if this has been asked before
« Reply #2 on: February 10, 2016, 08:16:13 AM »
Another contributor to this forum once gave an interesting detailed example explaining how a UK-resident US citizen on quite low income can have no UK tax liability, but still owe a small amount of US tax, some of which is effectively charged on welfare payments provided by the UK. I was looking for that example the other day. Does anyone remember the details?


Re: Sorry if this has been asked before
« Reply #3 on: February 10, 2016, 02:36:47 PM »
 
  Thanks for the help! ...Now to find someone to help me figure out what to do now


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Re: Sorry if this has been asked before
« Reply #4 on: February 10, 2016, 04:51:44 PM »

  Thanks for the help! ...Now to find someone to help me figure out what to do now

Here's a relevant thread on the topic.

http://talk.uk-yankee.com/index.php?topic=44529.0
« Last Edit: February 10, 2016, 05:23:44 PM by nun »


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Re: Sorry if this has been asked before
« Reply #5 on: February 10, 2016, 05:16:52 PM »
I've lived in the UK since 2004,done taxes for all that time. But now I'm wondering if I've done them right.

There now follows a post where the professionals will probably have my guts for garters:

You have been filing as required since 2004. In that time, all the returns you filed were completed to the best of your understanding. You filed in good faith that what you were reporting was the correct information required for your situation. You now discover they (may be, are, are possibly) incorrect.

File a 1040X for the last 3 years if you wish to be absolutely compliant (if there is an error in the previous returns). Alternatively, and more risky, file correctly going forward and leave the past 3 year returns as they are.

Never take advice from some stranger over the internet without fully researching your situation.



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Re: Sorry if this has been asked before
« Reply #6 on: February 10, 2016, 05:25:00 PM »
There now follows a post where the professionals will probably have my guts for garters:

You have been filing as required since 2004. In that time, all the returns you filed were completed to the best of your understanding. You filed in good faith that what you were reporting was the correct information required for your situation. You now discover they (may be, are, are possibly) incorrect.

File a 1040X for the last 3 years if you wish to be absolutely compliant (if there is an error in the previous returns). Alternatively, and more risky, file correctly going forward and leave the past 3 year returns as they are.

Never take advice from some stranger over the internet without fully researching your situation.

Good advice, the audit risk is probably tiny.


Re: Sorry if this has been asked before
« Reply #7 on: February 10, 2016, 05:30:39 PM »
 Thanks all,very much. Good advice that I will definitely be looking into  :)


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Re: Sorry if this has been asked before
« Reply #8 on: February 10, 2016, 05:37:35 PM »
jend, please allow me to re-phrase my post slightly.

Decide if you feel the UK benefits need reporting. If you feel they do, then recalculate each of the past 3 years including the additional amounts. Bear in mind your personal exemption and the standard deduction. If, as a result of the recalculations, you find you would have owed tax, then consider filing the 1040X's and include the additional tax due plus penalties/interest. If the recalculations result in no additional tax due for the past 3 years, then file correctly going forward and forget about the past 3 years.

The warning about strangers on the internet still stands.


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