Filing USA and U.K. taxes
#1
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Filing USA and U.K. taxes
On filing UK tax return do you use the same income you used on filing your US returns. I’m thinking we would file a joint return in the US and file separately in the UK as there is no joint return. Would you use the dollar amount converted into pounds. Take the £12500 allowances and pay tax on the remainder. Assuming my wife’s pension translated to less than £12500 she would owe no tax? Our income is all pretax and consists of US pensions, 403b, 457 and eventually SS. We are planning on retiring and moving back in 3 years at 56 if the numbers work.
I’ve been following this forum for a few years and found it to be priceless for information.!
I’ve been following this forum for a few years and found it to be priceless for information.!
#2
Re: Filing USA and U.K. taxes
UK tax returns are for the period April 6 - April 5, wheareas US tax returns are for a calendar year, so assuming that your pensions increase annually, then the numbers for the UK and US returns are never going to be the same.
#3
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Re: Filing USA and U.K. taxes
Oh right, of course. How about the process though? Did I get that right? Thanks!
#4
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Re: Filing USA and U.K. taxes
You can use the calendar year for your US income when filing with HMRC, simply state that you are treating your US income as “co-terminus” with the UK tax year. You can’t chop and change, you must stick with this ongoing. This makes it easy as the 1099s etc can be used easily rather than tracking the income in a spreadsheet. You can’t do that when filing with the IRS if you have UK income, you do have to track it on a calendar basis.
#5
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Re: Filing USA and U.K. taxes
#6
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Re: Filing USA and U.K. taxes
So on moving back would you recommend separate US regular bank accounts? My wife's pension is also considerably less than mine until she starts utilizing her 403b. We have recently opened a transfer wise borderless and a joint HSBC account in the US with the intension of opening one in the UK on our next trip back if we can.
#7
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Re: Filing USA and U.K. taxes
OK thanks! I think I’m finally getting my head around all this tax stuff. The next most daunting task is wrapping up a life of 30+ years in the US!