patrickquirke

I moved from the UK in March 2010 on a Fiance Visa (K1) and i married a US Citizen. I still work for my UK Company and pay UK Taxes i am a Permanent Resident here in the US with a Green Card (I am not a US Citizen). We have to fill in our tax filing now and i dont know what to enter or how to go out it over here. As i pay my taxes in the UK and there is a Tax Treaty between the UK and US i shouldn't have to pay US Taxes. Does anyone know what i need to do or know of any accountants i can contact and use?

ian-mstm

You shouldn't need to pay US tax on UK income that has already been taxed... correct. You still need to declare the income on your US tax return. You enter it at the beginning of the return (as income) and subtract it out at the end (money already taxed). At the end of it all, it works out just right.

Ian

rallybug

Is it all the income, or just the first $90-odd thousand dollars that don't get taxed by the US if UK income tax has been paid?

Might not apply in this case, but the OP may be lucky enough to earn more than that

Michael

The $90k foreign earned income exclusion only applies to expatriates that live outside the US. When becoming a resident, you fill out form 2555 to declare foreign income and that amount is placed in the other income line on form 1040 and then fill out form 1116 to indicate the amount of foreign income taxes paid and place that on the line for foreign tax credits on form 1040.

The income and taxes are can be retrieved from your UK pay stub reporting the amount of income paid during physical year 2010 and the amount of income taxes withheld during the year.

Therefore US taxes owed are offset by the foreign taxes paid.

He may want to see a tax accountant experienced in first year tax issues which includes foreign income.