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Yet ANOTHER tax question :)

Yet ANOTHER tax question :)

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Old Sep 8th 2015, 9:35 am
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Default Yet ANOTHER tax question :)

Hey all,

So another tax question - to summarise - I'll be moving to Philadelphia soon on a K1 Fiancé Visa - marrying shortly after arrival - and I'll be continuing to work for the company I work for now remotely, likely as an independent contractor - my question is, what country do I pay taxes to? The USA being a LPR there or the UK, where I moved from? I'd rather pay taxes to the USA - as I feel like it'll make my life easier.

Ideally I don't wanna be paying taxes to both countries!
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Old Sep 8th 2015, 9:59 am
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Default Re: Yet ANOTHER tax question :)

USA.

There is a tax treaty between the two countries so you don't pay tax in both countries.

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Old Sep 8th 2015, 10:03 am
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Default Re: Yet ANOTHER tax question :)

Sweet - thanks, I assume that before I leave for the USA I just inform the UK HMRC that I'm leaving and that'll be that?
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Old Sep 8th 2015, 10:04 am
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Default Re: Yet ANOTHER tax question :)

Originally Posted by BigBoss1984
Sweet - thanks, I assume that before I leave for the USA I just inform the UK HMRC that I'm leaving and that'll be that?
Sorry, no idea about that one.

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Old Sep 8th 2015, 11:06 am
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Default Re: Yet ANOTHER tax question :)

You file form P-85 with HMRC to tell them you're leaving the UK. Note that they may ask you to wait until the UK tax year you left in is over before filing it.
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Old Sep 8th 2015, 11:42 am
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Default Re: Yet ANOTHER tax question :)

Would I still have to pay UK taxes until the end of the tax year if they ask me to wait to file it?
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Old Sep 8th 2015, 11:55 am
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Default Re: Yet ANOTHER tax question :)

Originally Posted by BigBoss1984
Would I still have to pay UK taxes until the end of the tax year if they ask me to wait to file it?
A K-1 does not allow you to work in the US so you will have to apply for a work permit....most people do that after they get married and apply for the green card.

Once that is done you can work in the US and you will pay all your tax for work done in the US to the US. You will file as a part year resident.

Taxation of Dual-Status Aliens

If you are just invoicing the UK company they should not be withholding any NI or UK PAYE taxes and you will then file a Schedule C to declare your net income to the IRS and pay US tax on that.

Be careful of any UK investments or interest that you have as they will be fully taxable in the US and might also be taxable in the UK as UK source income and you will have to apply the treaty. The US also taxes some foreign investments in complex and expensive ways.
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Old Sep 8th 2015, 12:00 pm
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Default Re: Yet ANOTHER tax question :)

Thanks - I was told by someone on here that a K1 visa does allow you to work for the three months its valid for?
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Old Sep 8th 2015, 12:28 pm
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Default Re: Yet ANOTHER tax question :)

Nun, his other thread goes through all these details. That's why it's good to keep all questions in one thread. I'll merge this with his other one tomorrow.

A K1 visa holder is work authorized the first 90 days in the USA, as long as the employer doesn't need an I-9, which the UK employer won't.

Once the initial 90 days is up, an EAD is needed, but even if the OP continues working without it, USCIS forgives this when married to a USC and doing an AOS.

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Old Sep 8th 2015, 12:28 pm
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Default Re: Yet ANOTHER tax question :)

Originally Posted by BigBoss1984
Thanks - I was told by someone on here that a K1 visa does allow you to work for the three months its valid for?
A K-1 is a non-immigrant visa, but you can apply for a work permit that will allow you to work.

Fiancé(e) Visas | USCIS
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Old Sep 8th 2015, 12:28 pm
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Default Re: Yet ANOTHER tax question :)

Originally Posted by BigBoss1984
Thanks - I was told by someone on here that a K1 visa does allow you to work for the three months its valid for?
It does, but only with an EAD permit, which takes about 60 days to receive after you have arrived on your K-1, and the permit expires when you get married, then it takes about another 60 days to adjust status and get permission to work again.

If the ability to work is of significant importance to you then a CR-1 is the way to go. If you are committed to the K-1 route, get married as soon as practical after you arrive, then adjust status and you will be able to work about 60 days later.
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Old Sep 8th 2015, 12:31 pm
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Default Re: Yet ANOTHER tax question :)

I closed this thread as it's just rehashing what was discussed in his other threads. I will try to combine them later.

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