richardhawthorn

I moved to the US (from the UK) in Feb 2013 and started working right away, in 2013 I was considered a resident for tax purposes.

I paid tax in the UK for income between April 2012 - April 2013, I can claim the January - April 2013 from my US tax return, so I am not double taxed.

However, I have not filled in my April 2013 - April 2014 UK tax return yet, so I can't claim that (the April to December part) from my US tax return.

Do I file my US tax return now leaving the last 8 months of UK tax off, and then amend it when I have filed my UK tax return, or sort this out on my 2014 tax return instead?

Thanks for the advice

Richard

Pulaski

Neither. File for an extension to file your US 2013 tax return. You have until eod 4/15 to file for an extension; the default is approximately 6 more months to file your tax return.

richardhawthorn

Ah, so I have time to work out my UK tax return, then I can add that in before I fully submit my US return.

Michael

Normally you can claim the foreign taxes paid (withheld) from January 1-December 31 2013 as foreign tax credits. If when you file your UK tax return, you get a refund or have to pay more, that is included in the 2014 US tax return.

richardhawthorn

So it looks like I have 3 options

1. File for an extension, pay what I think I owe now. Then after I have done my UK tax return I can fill in my US return with all the details. I'll then have to make a payment adjustment as I will at that point be owed more foreign tax credit (as I will have paid my full year of tax in the UK)

2. File my tax return now, claim foreign tax credit for the first 4 months of 2013 UK tax, then claim the rest in 2014. No payment adjustments in 2013 needed.

3. File my tax return now, don't claim any foreign tax credit for 2013, but claim back all my 2013 tax credit in 2014 when I have all right information.

Any recommendations on the best path to take?

I'm getting close here, thanks for all the help so far!

Michael

I don't think number 3 is an option since there isn't foreign taxes for income in 2014 but you can file a 1040X (amended return for 2013).

Pulaski

If I understand what you've said, option 2 is also mismatching the UK tax year and the US tax year. Personally I think option 1 is by far the best, and the only "correct" way to do it.

Generally speaking you can't roll differences from prior years into this year's tax return just because you omitted things from prior years. When that happens you have to file amended returns, which gets messy and time consuming.

Jscl

The US tax return must only record taxes PAID in the 2013 tax year.

Your option 2) is not allowed (unless you didn't pay any UK tax in the last part of 2013, you just owed it)

Option 3) is also not allowed.

Option 1) is correct except a) make sure you are including UK tax PAID not just owed during the calendar year 2013, and b) you should pay what you think you will owe at the end of the US tax return process, i.e. what the final return will say, not what you've estimated now (in practical terms, just do your best guess but overestimate how much you owe rather than underestimate).

richardhawthorn

Thanks for the advice chaps, I really appreciate it!