ting6524

Hi all both my husband and myself work as a consultant (self employed) under E1 visa. We are not sure what sort of taxes need to be pay in Florida and do we need to file tax return to HMRC in UK? We did not notify HMRC that we are leaving UK.

Bob

IRS.gov is a starting point for federal taxes, 1099 done quarterly, usually. Basically all of them.

Shouldn't be any state taxes for Florida.

ting6524

Thanks bob, I'm not familiar to USA taxes. I read somewhere, it stated as a self employed, my husband would have to pay social security and medicare tax. So we have to pay self employed tax, federal tax and 1099. Can we do 1099 annually instead? Do you have any good accountant you can recommend?

Pulaski

Unless you have income IN the UK, there is no need to file UK tax returns after the April 5 following your departure from the UK.

Any income you have in the UK, and taxes paid have to be included in your US tax return anyway, so there is rarely any point in filing a tax return in the UK even if you are trying to reclaim tax because anything you receive back you're almost certainly going to have to fork over to the IRS anyway.

Just out of curiosity, how did you determine that relocating to Miami is financially viable for you if you have no idea what taxes you are liable for and how to pay them?

ting6524

We have not pay 2013-14 taxes yet. Can we declare all the taxes in UK instead or do we need to submit in USA too. I read something regarding double taxation relief. Many thanks. Its so daunting moving to USA everything is so different!

Noorah101

Since you are living in the USA, you MUST do a US tax return each year.

Rene

Pulaski

There's no such thing as "2013-2014" taxes in the US, all income taxes for individuals are calculated on a calendar year basis. You are liable for taxes in the US from the day you arrived to take up residence. If all or most if your income is from employment or consultancy fees then there should be a fairly clean break between your liability for UK taxes and your liability for US taxes, because both are calculated on the basis of where you were living when you earned them.

Bob

You get a 1099 from clients, shows what's been earned. You use that to calculate what you have to pay for social/medicare etc. It's on the IRS what the tax brackets are.

You could file it annually, but it depends how much money you will owe. If you so so much they'll ding you for extra if you don't pay it quarterly but it's based on your expected annual income.

You can search through BE, the search was working last night and find the numerous tax threads that had recommendations for an accountant, as it is Federal, you don't have to worry about where they are located as it's all the same.

ting6524

Do you know where can I find more information regarding how to submit the taxes in USA. I have tried to pm Peter Newton but not receiving any reply and sending a couple email to accountant we found online familiar to UK/US taxes so far none reply. I'm getting depress and try to get use to living in Miami beach. Is there anywhere we can meet up with some fellow British in Miami. I'm feeling homesick x thanks for all your guys help x

ting6524

Sorry Bob, what is BE? We have not received any 1099 from client, we just submit our invoice every month and they paid the monies to our bank.

Noorah101

For info on taxes, go to Internal Revenue Service.

BE means British Expats (this website)

You won't get a 1099 until Jan/Feb 2015. They will show the total you earned from each client in 2014.

Rene

ting6524

Many thanks Rene

Nutmegger

And you should be tracking your income anyway, OP -- even if each client does not send you a 1099 (they are supposed to be sent out by the January 30 following the year end), you are still liable to pay taxes on the income and should still report what you earned from that client. And you should indeed be paying quarterly estimated taxes, based on what you estimate your annual income will be.

Noorah101

I agree with keeping your own accurate income records.

Just wanted to add that my hubby is self employed but chooses not to pay taxes quarterly. He pays lump sum at end of the year. He earns about 30K a year. The penalty for not paying quarterly is very low, so he chooses to do it that way.

Rene

ting6524

Thanks again for the advice, think I need to find us a good accountant pronto!