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Topic: Should I keep this can of worms closed?  (Read 1854 times)

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Should I keep this can of worms closed?
« on: June 13, 2018, 12:34:00 PM »
Dual UK/US citizen

Currently employed and paid through PAYE, as a high earner.

I file using FTC versus FEIE due to my earnings.  I do not have any assets in the USA.

I have option of working a couple of hours as week teaching dance (big passion of mine).  I would be self-employed and likely gross around £2,000 a year.

From the UK perspective, I know that I would need to complete a self-assessment.

How will this change the USA perspective?

I'd love to get back into teaching, but I really don't want any tax headaches.  LOL!


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Re: Should I keep this can of worms closed?
« Reply #1 on: June 13, 2018, 12:41:29 PM »

Have you thought about just doing it for free as a volunteer?  It may be too difficult for the dance school to get their head around but it may be worth it for a simple tax life. 


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Re: Should I keep this can of worms closed?
« Reply #2 on: June 13, 2018, 12:50:25 PM »
Have you thought about just doing it for free as a volunteer?  It may be too difficult for the dance school to get their head around but it may be worth it for a simple tax life.

I don't think that would work from an insurance perspective-type thing.

Plus, I'd rather not give up all my Saturday mornings as a volunteer (I'm selfish).   ;D


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Re: Should I keep this can of worms closed?
« Reply #3 on: June 13, 2018, 01:14:12 PM »
Not a clue, but that sounds awesome! 
Wouldn't you just add it into your total income earned abroad?
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Re: Should I keep this can of worms closed?
« Reply #4 on: June 13, 2018, 01:26:53 PM »
When I used to do part time work in the USA as a soccer referee then if the payments were over $500 for the year I would get issued a 1099-MISC otherwise I would still report it as other income (in this case from hobbies) directly on line 21. (TurboTax prompts you through this).

I would think this would be acceptable as various other payments I get from the UK such as UK pensions and interest from banks don't come with 1099's. For years I used to report my UK pensions directly on line 21 as other income until I learned it was better to report them on substitute 1099-R's (form 4852) even though they are really aimed at US companies and I always have to answer questions such as "What efforts have you made to get a 1099-R from the company" and I have to enter a fictitious federal employer id (11-1234567).

« Last Edit: June 13, 2018, 01:30:04 PM by durhamlad »
Dual USC/UKC living in the UK since May 2016


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Re: Should I keep this can of worms closed?
« Reply #5 on: June 13, 2018, 01:59:21 PM »
Not a clue, but that sounds awesome! 
Wouldn't you just add it into your total income earned abroad?

I assume so.  But you know what they say about assuming.

My husband does a self-assessment (as he claims the rental income) and he says that while it's a pain, it's not a bid deal.  So I'm not worried about the UK tax side.

I wasn't sure if self-employed income is treated differently by the USA?  I know I've heard that self-employed earners often owe when filing US taxes...  I never quite know what to believe though.


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Re: Should I keep this can of worms closed?
« Reply #6 on: June 14, 2018, 06:45:38 PM »
If you are thinking about the self employment tax, you won't need to pay that because the UK has a totalisation agreement with the USA. You pay into the UK system.

As far as taxes,  you should be able to claim FTC or FEIE (up to the limit of course) on that amount of self employment. This is just my logic (not fact) the first paragraph about the totalisation agreement is correct though if you are resident in the UK.



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