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Topic: Self-employed and unsure of tax  (Read 600 times)

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Self-employed and unsure of tax
« on: April 03, 2018, 04:56:28 PM »
Hello,

If I'm self-employed, earning US funds, but living in the UK, do I owe US taxes for 2017? I'm preparing my return from the first time overseas and can't make sense of this.

Second, my husband and I are applying married filing separately. He's not a US citizen and doesn't earn money there, but my return is requesting that he have a tax ID number. Is this the norm?

Thanks for the help!


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Re: Self-employed and unsure of tax
« Reply #1 on: April 04, 2018, 10:51:44 AM »
If I'm self-employed, earning US funds, but living in the UK, do I owe US taxes for 2017?
If you are a US citizen or green card holder, then the answer is yes, you have to file a US tax return for every year you earn over the basic threshold which in your case as self employed is roughly $400/year. It makes no difference if you are resident in the UK.

If you are resident in the UK, you will also have to file a UK Self Assessment return with HMRC if you are filing in the UK on the 'arising basis'. There is a Personal Allowance threshold. It would be worth a call to HMRC to clarify your situation (don't worry, they're generally very friendly and helpful).

Second, my husband and I are applying married filing separately. He's not a US citizen and doesn't earn money there, but my return is requesting that he have a tax ID number. Is this the norm?
Yes. When asked for his ITIN, write 'NRA' (Non Resident Alien). If filing electronically, this may be rejected and the form may have to be printed out and sent by mail.


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Re: Self-employed and unsure of tax
« Reply #2 on: April 04, 2018, 11:19:06 AM »
If you are a US citizen or green card holder, then the answer is yes, you have to file a US tax return for every year you earn over the basic threshold which in your case as self employed is roughly $400/year. It makes no difference if you are resident in the UK.

If you are resident in the UK, you will also have to file a UK Self Assessment return with HMRC if you are filing in the UK on the 'arising basis'. There is a Personal Allowance threshold. It would be worth a call to HMRC to clarify your situation (don't worry, they're generally very friendly and helpful).
Yes. When asked for his ITIN, write 'NRA' (Non Resident Alien). If filing electronically, this may be rejected and the form may have to be printed out and sent by mail.

Great! This is most helpful. Thank you!


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