MrMuffin

Yes it sounds as though that's the best option. Filing the tax return each year and the other document regarding bank account records won't be that big a deal given that I'll then be able to claim any SS due along with 401k etc. Thanks all for the advice.

meauxna

Of course, you have to naturalize first, right?

MrMuffin

Yes. I am hoping to get that process started over the next week.

meauxna

The resources you need are posted in the USA wiki here.

Leeds_Lass

This thread is very interesting and has some very important points for those who are hoping to one day return to the UK and who may be confused about taxes and citizenship etc. (like me). Perhaps a stickie?

Xebedee

Here's a "what if" which you might (hopefully) have an opinion on.

Say for sake of argument you retire on both sides of the pond. You'd need to state one country as being your residence right? ok.
If the time spent were roughly equal - 6months either side, would one be generally preferable to the other for tax purposes?

I mean, lets say you and your spouse owns a caravan in each country, have Bank RothIRA's, employer Roth IRA's, SS and UK pension to boot. Lets also say that you fall under that magic income level so that you don't get double taxed. Is this actually simpler than it seems ?????

I suppose the question that governs might be: which country requires you be present for the greater amount of time to define residency?

Any ideas?

robin1234

Funny - I was thinking about that same scenario over the last couple of days. But remember that one would fall under a US State's rules for residency for tax purposes. In my case, I'd have to pay state tax as a part year resident in (for instance) Massachusetts or New York. But if I actually decided to live in England and just get a vacation rental for a month each year on Cape Cod (for instance,) at least I'd never have to bother with State tax again.

vermontbloke

Hey MrMuffin, just wanted to give you a heads up on one thing regarding the US citizenship process...............where you live plays a HUGE part in how long it takes to get through the process. I was living in PA back in 2004 and noticed(according to the USCIS website) that it was going to take me anywhere from a year to 18 months. At the time, my wife and I wanted to move to VT or NH and tossed a coin. We disasterously ended up in VT but because there were a lot less immigrants in the state of VT, it only took me 4 months to get my citizenship.........so my point is.......if you live in New Hampshire, the process will probably take you no more than 4 to 5 months providing there are no issues....and then Bob's your Uncle and off you go home to the UK.

Jelly100

Sorry to jump in on this thread, but I have an additional question related to this.
I have read on another website that many US citizens who move to the UK are unaware of the requirement to file taxes whilst they are not in the country, and are suprised when they want to go back and tax returns are requested. It was then said, they just end up filing the last 3 years and everything is ok? Does anyone know if this is the case in reality?

Also, if you do not file US taxes ( as a US citizen) and continue to live in UK, does this cause a problem when you apply for a new passport, ( after 10 years) or do taxes have no bearing on this at all?

thanks in advance

Jelly

Xebedee

We're thinking of selling the house and buying two caravans (read mobile home for the US )
That way, we could change the view of the garden if and when we wanted to. On both sides of the Atlantic.
Of course, the main idea is to have access to the NHS in our winter years and by then we will have paid into NI enough to not feel guilty about using the system.

meauxna

The '3 years' answer probably has more to do with the requirements for immigration and the I-864 Affidavit of Support. That is not an IRS suggestion. They can go back 7 years IIRC.

TaraC

Is that true? We were told that if we either have a GSC or are a USC, we pay taxes for the state in which we last had our place of residence in the US for the rest of our lives - or until we give up our USC/GSC. That's why we're looking at making a 6-month stop in a non-tax state before we make the permanent move. Does anyone know differently?

robin1234

You may be right - I was making a (maybe incorrect) assumption there.

This is my thought process on this question. I pay a lot of respect to the United States and the IRS. For better or worse, they have a global reach and power over me. If I don't submit my tax return, maybe they'll bring me to book when I re-enter the US for a vacation.

States, by contrast, have limited reach & power, and experience shows that they don't make any attempt to folow you up if one year you pay income tax, then they never hear from you again. My kids have left OK, MO and other places mid-year and not filed; not necessarily to escape paying tax, just because it is a big effort to file a state tax return when maybe you owe them $100 or they owe you $100.

If I left NY one year and never filed taxes again, wouldn't they just assume that I now lived in another state and was fulfilling that state's requirement. As far as I know, I would not have to submit anything to NY to document where I had moved to or when.

Margueriteuk

Does anyone know if a company is set up in the US (non income tax State) and then you move to the UK and operate that US business from the UK, is the income taxed in the UK (and therefore higher tax I presume)? Is there an advantage to spending a certain amount of months in the US operating this business so as to avoid UK residency and therefore UK tax (and how long might that be?)

Tootsie Frickensprinkles

For working overseas as a USC - he switched back to FL residence so he would not have to pay VA tax. My understanding is that VA is one of the more vicious taxers though.