katesbackagain

If I move back to the UK on a permanent basis, do I still have to file taxes for the time that I'm considered a permanent resident in the US, even if I'm earning and paying taxes in the UK? I'm probably going to apply for a re-entry permit before I go, so I could come back without a break in my residency within two years if I change my mind.

Also, if my US citizen husband comes with me, he would have to file taxes in the US as normal, I would assume?

I'll be checking out the IRS website a bit later, but I just wanted to see if anyone had any advice on what I should be looking for on there. Thanks in advance.

Rete

If you wish to retain your US permanent residency, then yes, you are required to file a 1040. However, you have to bear in mind that there is a tax treaty in place and it is doubtful that you will earn more in the UK then allowed taxfree by the IRS after you paid UK taxes on your earnings.

katesbackagain

Thanks, Rete, that helps. I agree that I don't think I'll earn more than allowed. I think it's around $86K for the year, so if the exchange rate stays the same, that's 43K GBP. Yah, I'll earn that, I wish!!!

So on my tax return, I'd just fill out zero's for total amounts earned if I don't work at all starting January 1st 2008? I'm hoping to go back at the middle or end of Jan, and depending on my financial situation, may not work while I get things organized for that time.

Rete

For the 2007 return you would have to include the money you earned in the US on the 1040.

For 2008 you would just put down you earned income from the UK. Not sure if you should include your filed income tax form from the UK with it or not. We never did include the filed Canadian return only a copy of the withholding statement.

Marocco

Keep in mind, however, that if you decide to open an ISA you may have to pay US taxes on it.