Pulaski

That will likely cost you your green card, meaning you will have to go through the IR-1 visa application process when you want to immigrate to the US later.

BigBoss1984

Oh yeah? Maybe not then! Haha, everything isn't set in stone yet other than the K1 we're applying for now - if it'll cost me my green card us moving back then we'll probably just wait til my green card comes through and take it from there

nun

So you'll be applying for a GC after the K1. If so you'll be US resident and will have to pay US income and payroll tax. You should work out your relationship with your UK employer and probably become a self employed contractor. Do you know the hourly rate you should charge them?

If you return to the UK you could easily lose your GC, Once you have the GC any extended move out of the US might well be seen as you giving up US residency. Also have you looked at the requirements to get your non-EU spouse a UK visa?

BigBoss1984

To be honest like I said if moving back is gonna cause problems we likely won't, as I'd rather move to the U.S than remain in the UK anyways.

The relationship with my employer is good, the CEO is a family member so theres no issues surrounding that - it's all a discussion we would have when the time comes to discuss that stuff.

He (the CEO) is talking about incorporating the business to allow for a U.S presence then hiring out office space for me somewhere in the city where I'll be moving. Would that be easier from a tax perspective rather than contracting?

Thanks

Noorah101

BigBoss,

You should plan on staying in the USA long enough to become a USC. That is the only way you can comfortably move back to the UK and still retain the right to move back to the USA in the future.

After you become a USC, you might have to move back to the UK ahead of your spouse, so you can financially sponsor her immigrant visa. Make sure you look ahead to what that process is; my understanding is that it's not as easy as immigrating to the USA.

So for work in the USA, you will be a US PR and will report all world wide income each year on a US tax return. You won't pay double tax because there's a tax treaty between US and UK.

Rene

BigBoss1984

Great! Thanks once again Rene, we will stay in the US long enough for me to become a USC if it'll be a problem

How would it work if I became a contractor for the company instead as they don't currently have a U.S presence?

Noorah101

That sounds more confusing, to me, because there would be more expenses involved. Who would pay the office space rent? Utilities? He would do that long distance from the UK? I think it would be much easier to be a contractor and work from home.

Rene

BigBoss1984

Haha yeah - certainly sounds that way! And then I'd be responsible for all my own taxes right? I think thats the part I'm concerned about, having never done contracting before!

Thanks

Noorah101

As a contractor, they give you as assignment, you work on it, and send invoices to the company. They pay you. You report the income on your US tax return. As a self employed person, there is a little extra tax to pay. My husband is also a self employed sole proprietor, and he pays at the ends of each year (not quarterly). There's a small penalty for doing that, but only comes to a a few dollars. He doesn't have any overseas clients, but it doesn't matter. To the USA, it's all just income.

Rene

Noorah101

I'm not sure what you mean. You are responsible for your own taxes either way.

Rene

BigBoss1984

Perfect - sounds fairly straight forward when you put it that way - so you can opt to file your taxes quarterly or annually?

What other taxes would you pay on a monthly basis? Over here in the UK you pay things like National Insurance monthly etc.

BigBoss1984

Yeah sorry - I think I was overcomplicating the contractor thing - the way you explained it in your last post makes sense though

nun

Getting incorporated in the US would be a pain for your relative's company. It's probably easier for you to be a self-employed contractor. If it's only you it's really easy and you do it as part of your usual taxes, there's usually no other paperwork to do. You will just have to file a Schedule C

http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

you just put in your business income, subtract the expenses and then you pay income tax and 15% payroll tax. You should also look into continuing to pay Class 2 NI contributions in the UK. When you leave the UK make sure you file a P85.

If your fiancee is in college see if there are any benefits you can from them. There might be some health insurance available for married students.

Noorah101

No. You can only file a tax return once a year. But you can make estimated quarterly tax payments to the IRS. This is sort of hit-and-miss each year, unless you know exactly how much you'll earn from year to year. My husband's income fluctuates so much that he doesn't pay the quarterly estimated tax amount...we just wait until the end of the year and see how it turns out on the tax return.

I'm employed by a company, so monthly tax stuff is taken out of my paycheck. My husband is self employed so he doesn't pay anything tax-wise on a monthly basis. It's all calculated at the end of the year when we do a joint tax return. We have a CPA who does ours, so I am not really familiar with what all she takes out on his behalf at the end of the year....I know there's a small penalty for not paying the quarterly estimated taxes (a few dollars), and if he earns over a certain dollar amount, she takes out for Social Security for him.

Rene

Noorah101

I just realized we got to talking about taxes on this thread which was supposed to be for insurance, sorry.

Rene