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1040NR and UK Tax Treaty hell

1040NR and UK Tax Treaty hell

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Old Apr 27th 2010, 7:18 am
  #16  
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Default Re: 1040NR and UK Tax Treaty hell

Originally Posted by CarlWain74
So what is meant by Local Tax? I can see that I have mentioned already the Income Tax on 58a (Under Payments). I would therefore assume that Social Security and Medicare needs to be included as a Payment somewhere?

It's then not clear where Social Security and Medicare is taken into account on the 1040NR form :-(
If you did work in the US in 2009 you would have received a W2 form from your employer which would show any local or state tax that was deducted from your income. Each State is different and each city can vary in each state. For instance I live in NYC and I have to pay City, State and Federal income tax. Social Security and Medicare (which can be lumped into one category known as FICA) on you paycheck are seperate than local taxes. They will be listed on your W2 as well.
Also I'm not sure if you can(or have to) do this as a non resident but as a resident you need to show your income from your house that is being rented out in the UK. There is a form that you use to declare that and the interest and the mortgage and any repairs and amounts of wear and tear are deductable and usually work for you. Ask your accountant about this.
You also need to register with HMRC as a non resident landlord if you live abroad and rent out your house. By the way we used Pete Newton who we found on here to do our states.He did a great job! He is here in NYC but he does do taxes in other states. I would definately use an accountant who specialises in this type of return and not H&R Block!
My husband moved here on a K1 in September 2008 and we filled out a form to decalre him a resident for tax purposes for that year. I'm not sure if that will work for your situation but maybe you can check into that.
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Old Apr 27th 2010, 7:21 am
  #17  
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Default Re: 1040NR and UK Tax Treaty hell

Originally Posted by CarlWain74
So what is meant by Local Tax? I can see that I have mentioned already the Income Tax on 58a (Under Payments). I would therefore assume that Social Security and Medicare needs to be included as a Payment somewhere?

It's then not clear where Social Security and Medicare is taken into account on the 1040NR form :-(
That is state or local income tax. If you don't have at least $5,700 in deductions, you probably should fill out 1040NR-EZ to make your life easier.
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Old Apr 27th 2010, 11:20 am
  #18  
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Default Re: 1040NR and UK Tax Treaty hell

Originally Posted by CarlWain74
It's then not clear where Social Security and Medicare is taken into account on the 1040NR form :-(
They are not usually reported on the 1040 (any version), other than on the W2 you send with the form. The only exception is if you switched (US) jobs during the year, made a lot of money, and paid an excess of social security. This situation is unusual.

Schedule A may not be necessary for you - the standard deduction may be higher, if you are entitled to it.
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