Hello
I have (probably dumb) questions about filing income I received from my UK-based company but I just wanted to make sure I am understanding US rules correctly. Appreciate any help.
So my UK company is a limited company (Ltd) and for UK tax purposes I pay myself a salary and any profits I make are distributed as dividends (I have a UK accountant who sorts this out). I am the director and the only employee. So basically I work for myself but the UK classes me as employed and employer.
As I understand it, the IRS considers my company as a solely owned LLC which is automatically disregarded and therefore all of my income must be reported through schedule C (as a self-employed person).
Is this basically correct? That is, I do NOT put wages I paid myself on my 1040 (line 1) but instead go through schedule 1 (and schedule C). I also cannot deduct wages on schedule C? That is, I just have to put gross income, take the business expense deductions, and then my net income goes back on 1040.
The other questions I have are:
-Does anyone know how to report child benefit payments (where on 1040?)
-Is it possible to report that I have paid tax in the UK on my company based income??? I don't see how to do this? Does it go on schedule C?
Thanks again for any help.
