the scotsman

Im in Houston on a L1B visa. Been here 2 1/2 yrs and im away to go back home. I have been paid in to my UK account and paid UK tax, In the last few months they have paid me into my US account but still paying UK tax. Someone mentioned that after 180days in the US that my company had to pay US Equivalecy tax? My accountant at the company has looked on the IRS website but cant find anything about it? Any Idears? Is it called something else? I was also told that when i leave the US i need to go to the tax office and file in forms? any idea of what i need to do?

Thanks for your help.
Andy

Jerseygirl

If you've been living here for 2 1/2 years you should have paid US taxes.

Rete

My thought as well. Even if he doesn't owe taxes because he has paid taxes on his US earnings in the UK, he still should have been filing a US tax return.

chartreuse

I read the subject line and my first thought was that this was another thread about credential evaluators.

Michael

Your company has been illegally not withholding US tax and paying UK taxes that aren't required. The only option is to pay NHS taxes instead of social security and medicare taxes.

Jerseygirl

What are NHS taxes?

Michael

National Health Service.

Jerseygirl

That is funded from income tax..there is no separate NHS tax. Do you mean NI...National Insurance?

chartreuse

JG is right. Michael - do you mean National Insurance?

Jerseygirl - Jinx!

the scotsman

I have been paying my NI contributions in the UK and also Income tax but nothing into Uncles Sams pocket in the States

Michael

Sorry NI.

Jerseygirl

Like Rete said you should have at least filed a US tax return each year. It maybe an idea to consult with a tax accountant who has experience in UK/US taxes.

Michael

Since UK tax is generally higher than US tax, you have been getting screwed. Are you working for a small company or does the company just have a tax accountant that shouldn't be working in that field?

Since the company screwed up, they should be the ones to pay the cost of straightening out the mess.

the scotsman

Hi Michael, work for a small company with a director who does the accounts. He doesn't really know about US tax and basically i've been a guinea pig in this saga by the looks of things.
I just married a US girl and am heading home until my EAD document comes through (Still not started filing for change of status) Will this tax issue be a problem with re entry to the US or my EAD application?

Macca67

Are you sure you are not mixing-up "Tax Equivalency" with "Tax Equalization"? The latter is used by many companies who send their folks overseas and want to ensure they are no better or worse off from a tax perspective than they would be in the home country. If there is a tax liability then the company pays the bill.

If your assignment is temporary then you can continue to pay NI to ensure you will maintain enough contributins to qualify for a full UK state pension - I think!