hannahc16

Good Morning,

I asked recently about some money I was getting and just wanted some clarification on the whole process.

So my husband went out to work in Florida in May and I wont be moving out there until mid of October, when I get there I wont be working.

Now I am also getting made redundant in October and will then be getting my pay out over £15k.

When it comes to filling taxes next year what do I need to do? Will I need to complete an FBAR do I do this as soon as I get out there or wait till I complete my taxes and when it comes to completing my taxes do I even need to do this or do I just get added to my Husbands as not working.

Sorry I know this gets asked all the time and ive tried and tried to read all the threads but I am really confused as his company have paid to have someone help him out next year but not myself.

Thanks

tom169

Taxes run on the calendar year in the USA so you don't need to do anything until next year.

What you do depends on how you choose to file. So cross this bridge at the start of next year.

hannahc16

how will I know how to file though or will that be dependent on what the other half does?

shall I not worry about the 15k plus in my uk bank acc either then till next year?

tom169

As you're married it will be a joint decision.

Generally you get turbotax or another software and run different permutations and then figure out which is the best route to take.

£15k in a foreign bank in the grand scheme of things is not a lot.

If it turns out you/other half need to file an FBAR, it's a simple online PDF. It'll take 30 minutes tops.

hannahc16

ok brilliant thank you so my main worry was filling out the FBAR as soon as I hit US soil but seems like that wouldn't be the case.

thank you

Steve_

Read IRS publication 519, particularly the bit about dual-status returns. You'll need to file a dual-status return for 2017, which is essentially two tax returns, a non-resident return for the first part of the year and a resident return for the last part of the year. You can elect to be resident for the whole year but you won't want to be, because the IRS would then be able to tax your £15,000 pay out and any other income you had in 2017 prior to moving to the US.

A lot of people get confused between immigration law and tax law - even in a non-immigrant category like L-2, you are still resident in the US for tax purposes if that is your principal residence.

You'll also hear a lot of guff about the "substantial presence test" which is in the IRS publications and the banks, etc. always reference it. Doesn't matter, overridden by Article 4 of the tax treaty, your residency is determined by where your "centre of vital interests" is.

Avoid taking cavalier advice from H&R Block or "accountants" who are really just form fillers, another common pitfall.