I miss England, and want to return...
Jan 3rd 2003, 6:57 pm
#1
Guest
Posts: n/a
I miss England, and want to return...
Hi folks!
I am hoping there will be someone here who can help me. I am a
permanent resident here in the US. My wife is a US Citizen. I am a
British Citizen (born and bred). We want to return to the UK, with my
wife gaining entry on a settlement visa.
I have a few questions, and would be grateful if anyone out there can
help us.
1.) What is the taxation situation if we go back to the uk?
2.) Does she forfeit any part of her Citizenship when we go?
3.) I need some help with the forms IM2A and IM2B, does anyone have
experience with these?
I have a lot more small queries, but these are enough to start me off.
Any good links or advice would be greatly appreciated. If it helps to
answer my questions, I have been in the US since October 2002. We are
currently unemployed, and have no employment offers in the uk yet. I
called the embassy, who told me that as long as myparents provided
proof of accomodation for us, and we had a decent amount of savings in
the bank, we would be able to apply for the visa.
I hope some of you can help. Thank you for your time...
I am hoping there will be someone here who can help me. I am a
permanent resident here in the US. My wife is a US Citizen. I am a
British Citizen (born and bred). We want to return to the UK, with my
wife gaining entry on a settlement visa.
I have a few questions, and would be grateful if anyone out there can
help us.
1.) What is the taxation situation if we go back to the uk?
2.) Does she forfeit any part of her Citizenship when we go?
3.) I need some help with the forms IM2A and IM2B, does anyone have
experience with these?
I have a lot more small queries, but these are enough to start me off.
Any good links or advice would be greatly appreciated. If it helps to
answer my questions, I have been in the US since October 2002. We are
currently unemployed, and have no employment offers in the uk yet. I
called the embassy, who told me that as long as myparents provided
proof of accomodation for us, and we had a decent amount of savings in
the bank, we would be able to apply for the visa.
I hope some of you can help. Thank you for your time...
Jan 3rd 2003, 8:25 pm
#2
Guest
Posts: n/a
Re: I miss England, and want to return...
Soup Lover wrote:
>
> Hi folks!
>
> I am hoping there will be someone here who can help me. I am a
> permanent resident here in the US. My wife is a US Citizen. I am a
> British Citizen (born and bred). We want to return to the UK, with my
> wife gaining entry on a settlement visa.
>
> I have a few questions, and would be grateful if anyone out there can
> help us.
>
> 1.) What is the taxation situation if we go back to the uk?
I am not certain about permanent residents but your wife must file a
return no matter where she lives. Once she has been abroad long enough
(some number of months I believe) she will qualify for the foreign
earned income exclusion which I believe is 78,000 USD or more. In
effect, she will not owe tax to the US unless she makes over the
exclusion amount but just because there is an exclusion does not mean
she does not have to file if she makes less than that amount.
I don't know all the details (lucikly, when I lived in the UK all my US
tax returns were prepared for me) so it is best to research this. I do
know the filing requirement is not lifted if a US citizen simply lives
abroad.
The IRS office at the US embassy in London could probably help answer
questions. I'm sure there is also a lot of info at
> 2.) Does she forfeit any part of her Citizenship when we go?
None at all. Such a "forfeiture" is never automatic as I understand it.
She can even become a British citizen if she wants to (and be a "dual"
citizen)
> 3.) I need some help with the forms IM2A and IM2B, does anyone have
> experience with these?
Try misc.immigration.misc
> I have a lot more small queries, but these are enough to start me off.
> Any good links or advice would be greatly appreciated. If it helps to
"An American Chick's Guide to the UK IND"
. The person who created this also
posts to misc.immigration.misc
Hope this helps. I miss England too but I'm not sure my wife and I will
go back to live there.
LD
>
> Hi folks!
>
> I am hoping there will be someone here who can help me. I am a
> permanent resident here in the US. My wife is a US Citizen. I am a
> British Citizen (born and bred). We want to return to the UK, with my
> wife gaining entry on a settlement visa.
>
> I have a few questions, and would be grateful if anyone out there can
> help us.
>
> 1.) What is the taxation situation if we go back to the uk?
I am not certain about permanent residents but your wife must file a
return no matter where she lives. Once she has been abroad long enough
(some number of months I believe) she will qualify for the foreign
earned income exclusion which I believe is 78,000 USD or more. In
effect, she will not owe tax to the US unless she makes over the
exclusion amount but just because there is an exclusion does not mean
she does not have to file if she makes less than that amount.
I don't know all the details (lucikly, when I lived in the UK all my US
tax returns were prepared for me) so it is best to research this. I do
know the filing requirement is not lifted if a US citizen simply lives
abroad.
The IRS office at the US embassy in London could probably help answer
questions. I'm sure there is also a lot of info at
> 2.) Does she forfeit any part of her Citizenship when we go?
None at all. Such a "forfeiture" is never automatic as I understand it.
She can even become a British citizen if she wants to (and be a "dual"
citizen)
> 3.) I need some help with the forms IM2A and IM2B, does anyone have
> experience with these?
Try misc.immigration.misc
> I have a lot more small queries, but these are enough to start me off.
> Any good links or advice would be greatly appreciated. If it helps to
"An American Chick's Guide to the UK IND"
. The person who created this also
posts to misc.immigration.misc
Hope this helps. I miss England too but I'm not sure my wife and I will
go back to live there.
LD
Jan 3rd 2003, 8:57 pm
#3
BE Enthusiast
Joined: Sep 2002
Location: uk
Posts: 536
I am not a tax specialist and all I can tell you is what I have gleaned from the Inland Revenue. For what its worth........there is an agreement between the USA and the UK that there will be NO double taxation. If you are returning to the UK on a permanent basis then I believe you will become liable to UK tax from the moment you arrive..........and then will not be liable to US tax. Of course, there are forms to complete in order to regularise the process and I suggest that, in the first instance, you contact the IRS (obvious i know, but nonetheless appropriate),
Jan 3rd 2003, 9:52 pm
#4
Forum Regular
Joined: Dec 2002
Posts: 235
Originally posted by abba48uk
I am not a tax specialist and all I can tell you is what I have gleaned from the Inland Revenue. For what its worth........there is an agreement between the USA and the UK that there will be NO double taxation. If you are returning to the UK on a permanent basis then I believe you will become liable to UK tax from the moment you arrive..........and then will not be liable to US tax. Of course, there are forms to complete in order to regularise the process and I suggest that, in the first instance, you contact the IRS (obvious i know, but nonetheless appropriate),
I am not a tax specialist and all I can tell you is what I have gleaned from the Inland Revenue. For what its worth........there is an agreement between the USA and the UK that there will be NO double taxation. If you are returning to the UK on a permanent basis then I believe you will become liable to UK tax from the moment you arrive..........and then will not be liable to US tax. Of course, there are forms to complete in order to regularise the process and I suggest that, in the first instance, you contact the IRS (obvious i know, but nonetheless appropriate),
Jan 3rd 2003, 10:11 pm
#5
Forum Regular
Joined: Nov 2002
Location: Sheffield, England to Bedford, Texas.
Posts: 152
US and UK tax affairs
I'm a USC living in UK on indefinite leave to remain in the UK (a.k.a. permanent residency) and am doing my tax returns now so I can file my I-864.
She'll not have to pay any US income tax if she earns under $90k a year here (UK). She will need to fill out a 2555-ez which is a foreign income exemption form along with her 1040 while she's here.
No she will not have to forfeit any of her US citizenship! I have two kids that are UK born, and even they have US passports now.
She'll not have to pay any US income tax if she earns under $90k a year here (UK). She will need to fill out a 2555-ez which is a foreign income exemption form along with her 1040 while she's here.
No she will not have to forfeit any of her US citizenship! I have two kids that are UK born, and even they have US passports now.
Jan 4th 2003, 12:05 pm
#6
Guest
Posts: n/a
Re: I miss England, and want to return...
> I am hoping there will be someone here who can help me. I am a
> permanent resident here in the US. My wife is a US Citizen. I am a
> British Citizen (born and bred). We want to return to the UK, with my
> wife gaining entry on a settlement visa.
>
> I have a few questions, and would be grateful if anyone out there can
> help us.
>
> 1.) What is the taxation situation if we go back to the uk?
If you give up your permanent resident status in the US,
then you would no longer have to pay US income tax, unless
you had income from US sources, and it was not covered by
a tax treaty between the US and the UK.
The case with your wife is different. Unlike the UK (and most
other countries) which determine tax responsibility based
on residency, domicile, or source of income, the United States
chooses to also impose tax responsibility based on citizenship.
This means that a US citizen's worldwide income is subject to
US income taxes even if that person does not live in the US,
and even if the income is not from US sources.
In actuality, the majority of US citizens who live and work
abroad merely end up filing a US tax return each year, but they
do not end up paying any US income tax. They can take advantage
of the Foreign Earned Income Exclusion (form 2555) and the
Foreign Tax Credit (form 1116), to eliminate most, if not all,
US taxes due. Still, a US tax return will have to be filed
by your wife. Unless you are completely comfortable with
handling this, it would probably be worth it for you to contact
a tax advisor who handles US citizens who lives abroad.
As UK residents, your worldwide income would be subject to
UK income tax.
>
> 2.) Does she forfeit any part of her Citizenship when we go?
Absolutely not. A US citizen can live abroad indefinitely
without losing US citizenship. Your wife can, in fact,
eventually become a British citizen and still keep her
US citizenship if she wishes. Here's a website that discusses
that in more detail: http://www.richw.org/dualcit/
Stephen Gallagher
> permanent resident here in the US. My wife is a US Citizen. I am a
> British Citizen (born and bred). We want to return to the UK, with my
> wife gaining entry on a settlement visa.
>
> I have a few questions, and would be grateful if anyone out there can
> help us.
>
> 1.) What is the taxation situation if we go back to the uk?
If you give up your permanent resident status in the US,
then you would no longer have to pay US income tax, unless
you had income from US sources, and it was not covered by
a tax treaty between the US and the UK.
The case with your wife is different. Unlike the UK (and most
other countries) which determine tax responsibility based
on residency, domicile, or source of income, the United States
chooses to also impose tax responsibility based on citizenship.
This means that a US citizen's worldwide income is subject to
US income taxes even if that person does not live in the US,
and even if the income is not from US sources.
In actuality, the majority of US citizens who live and work
abroad merely end up filing a US tax return each year, but they
do not end up paying any US income tax. They can take advantage
of the Foreign Earned Income Exclusion (form 2555) and the
Foreign Tax Credit (form 1116), to eliminate most, if not all,
US taxes due. Still, a US tax return will have to be filed
by your wife. Unless you are completely comfortable with
handling this, it would probably be worth it for you to contact
a tax advisor who handles US citizens who lives abroad.
As UK residents, your worldwide income would be subject to
UK income tax.
>
> 2.) Does she forfeit any part of her Citizenship when we go?
Absolutely not. A US citizen can live abroad indefinitely
without losing US citizenship. Your wife can, in fact,
eventually become a British citizen and still keep her
US citizenship if she wishes. Here's a website that discusses
that in more detail: http://www.richw.org/dualcit/
Stephen Gallagher
Jan 4th 2003, 12:10 pm
#7
Guest
Posts: n/a
Re: I miss England, and want to return...
L D Jones wrote in message news:...
> Soup Lover wrote:
> >
> > Hi folks!
> >
> > I am hoping there will be someone here who can help me. I am a
> > permanent resident here in the US. My wife is a US Citizen. I am a
> > British Citizen (born and bred). We want to return to the UK, with my
> > wife gaining entry on a settlement visa.
> >
> > I have a few questions, and would be grateful if anyone out there can
> > help us.
> >
> > 1.) What is the taxation situation if we go back to the uk?
>
> I am not certain about permanent residents but your wife must file a
> return no matter where she lives. Once she has been abroad long enough
> (some number of months I believe) she will qualify for the foreign
> earned income exclusion which I believe is 78,000 USD or more. In
> effect, she will not owe tax to the US unless she makes over the
> exclusion amount
True, and she will normally be able to deduct any UK tax paid on
the excess income from any US tax due.
> but just because there is an exclusion does not mean
> she does not have to file if she makes less than that amount.
Yes. Even if the exclusions and credits reduce your wife's tax
liability to zero, she must file a US tax return.
Stephen Gallagher
> Soup Lover wrote:
> >
> > Hi folks!
> >
> > I am hoping there will be someone here who can help me. I am a
> > permanent resident here in the US. My wife is a US Citizen. I am a
> > British Citizen (born and bred). We want to return to the UK, with my
> > wife gaining entry on a settlement visa.
> >
> > I have a few questions, and would be grateful if anyone out there can
> > help us.
> >
> > 1.) What is the taxation situation if we go back to the uk?
>
> I am not certain about permanent residents but your wife must file a
> return no matter where she lives. Once she has been abroad long enough
> (some number of months I believe) she will qualify for the foreign
> earned income exclusion which I believe is 78,000 USD or more. In
> effect, she will not owe tax to the US unless she makes over the
> exclusion amount
True, and she will normally be able to deduct any UK tax paid on
the excess income from any US tax due.
> but just because there is an exclusion does not mean
> she does not have to file if she makes less than that amount.
Yes. Even if the exclusions and credits reduce your wife's tax
liability to zero, she must file a US tax return.
Stephen Gallagher
Jan 4th 2003, 2:57 pm
#8
Sursum corda
Joined: Sep 2002
Location: Richmond Hill, GA USA
Posts: 38,860
USC income tax liability
Your wife as a USC will indeed be exempt up to the current level allowed by the US on her tax as long as she does not stay in the US over a certain amount of time. My ex husband, (USC) has worked abroad (Croatia, Bosnia and Macedonia) for 7 years and he is "safe" as long as he isn't in the US for more than 30 or 35 days total in a calendar year.
Jan 6th 2003, 2:17 am
#9
Guest
Posts: n/a
Re: I miss England, and want to return...
Thank you to everyone who has posted. Your advice is appreciated. If
anyone else has more to add, please feel free...
anyone else has more to add, please feel free...
Jan 6th 2003, 11:22 am
#10
Forum Regular
Joined: Nov 2002
Location: Sheffield, England to Bedford, Texas.
Posts: 152
tax filing
She *IS* liable to pay tax on income earned abroad if it is over $90k that year (check the exact threshhold on IRS site -- its between $78 and $90k depending on the year and her deductions such as children).
However, according to the IRS website, she, I, and anyone else like us do NOT even have to file a return if our gross income is less than $7,500 for that year. This was the case for me for 96, 97, 98 and 99.
I am not an accountant or anything of the like, just a US resident abroad (not for long!!).
However, according to the IRS website, she, I, and anyone else like us do NOT even have to file a return if our gross income is less than $7,500 for that year. This was the case for me for 96, 97, 98 and 99.
I am not an accountant or anything of the like, just a US resident abroad (not for long!!).
