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Topic: US Tax help please - self employed  (Read 1557 times)

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US Tax help please - self employed
« on: February 17, 2021, 03:57:05 PM »
Hello! Apologies if this question has been asked before but I didn't see exactly what I was looking for.

This is my second year in the UK but my first year I worked in the US the first three months so filed taxes as per usual. This year, I'm finding it very perplexing.


I only made £3,190 last year doing odd jobs (not much call for my particular set of skills here in Bristol). I received tax form 1099-G from the State of California. I went to the free file forms online and am not sure that I can use that. Also, should I be filling out a form 2555? Do I have to fill out a state tax form even though I no longer live there?

Or should I suck it up and pay an accountant to help me this year and then I will hopefully be able to do it on my own after that? If you think this is the best way, I'd love some suggestions. I would hate to have to pay hundreds of pounds for this seeing as I made so little but I also would rather have this done correctly than have the IRS on my tail for the rest of my life...

Thank you in advance for your help!


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Re: US Tax help please - self employed
« Reply #1 on: February 17, 2021, 04:23:16 PM »
Hopefully someone more tax savvy will chime in but here are my thoughts. If you took the standard deduction last year rather than itemised then you can forget the 1099-G since you won’t have claimed State taxes paid as a deduction so their refund to you recorded on the 1099-G is not needed.

I’m not sure if you use form 2555 to exclude wages from odd jobs or not. But that shouldn’t matter as it sounds like you will be below the US tax allowance and won’t owe any taxes. Presumably you didn’t pay any taxes to HMRC either.

I don’t know if you need file a California State return or not.
Dual USC/UKC living in the UK since May 2016


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Re: US Tax help please - self employed
« Reply #2 on: March 09, 2021, 12:40:16 PM »
Unfortunately you will still be liable for self employment tax unless you obtain confirmation from the UK that you are covered by NI here.


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Re: US Tax help please - self employed
« Reply #3 on: April 06, 2021, 11:29:49 AM »
More questions if anybody has a moment:

1. Since I didn't have a steady job in 2020, my meager earnings (£3190) were from different individuals. I was filling out everything on TaxAct and it asked for Foreign Employer Compensation and Pensions - Payer's Name, address, etc. Because these were all individuals, I don't really have this information. Has anybody ever had this happen before and, if so, what would you put?

2. I didn't make enough money to pay any tax here in the UK last UK tax season. Does that mean I'll have to pay Social Security tax in the US?

3.  Out of curiosity, what is used as proof that I'm covered by NI here? Is it the sheet I received initially with my NI number on it? Or is it the tax documents when I finally do pay UK taxes (which I will have to do eventually as I'm currently working but again, independently, so I'll have to pay a lot into NI at that time).

Thank you in advance for any help!!


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Re: US Tax help please - self employed
« Reply #4 on: April 06, 2021, 05:18:16 PM »
NI doesn’t “cover you” for anything per say, rather it is paying into the State pension system, the UK equivalent of SS. Once you have 10 years of contributions you will be entitled to a State pension, a.k.a. the OAP. You can create an online account with HMRC.gov and among other things view your NI contributions record and see a forecast of what your future OAP will be.

https://www.gov.uk/log-in-register-hmrc-online-services
Dual USC/UKC living in the UK since May 2016


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Re: US Tax help please - self employed
« Reply #5 on: April 06, 2021, 08:10:23 PM »
Income from several individuals? You are self-employed?  Perhaps this will help.

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center


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