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First month in the US

First month in the US

Old Dec 10th 2016, 3:37 am
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Default First month in the US

I am glad I came across this forum, it gives so much information in human language. Hopefully somebody is clever and kind enough to help me with my questions.
Four years ago my husband passed away and I lived in Scotland on widows of police officer pension since. This money let me live quite comfortable in the UK. I do pay couple of ponds a month tax on it.
I have my children settled in the US and after a while I decide I could not stand silence in the house and all sorts of things you get after your happy life suddenly ended any more.
I have arrived here on 1st November on immigrant visa from the UK on family reunion grounds. I have received my SSN and waiting for GC. I live with my daughter and her partner in Virginia. I won't be working at all for this year in the USA. I am 60, so I am not sure I can find a suitable job even later on.
I started to read about taxes and health care and after month of reading I don't get anywhere. Maybe because I am not so clever and English is not my mother tongue?
Can anyone help me with some questions?

1. Should I file my income for this tax year? (I am here November and December, GC hasn't arrived yet).
I have a house and some savings more then $10k in the UK.
I have read some topics and it seems I don't have to file my tax return 2016.

2. How I define myself (I only understood I file as a single person)
Am I nonresident until I get GC? Then I become a resident?

3. Do I pay any income tax here if I get £11k a year pension only?

3. Is anything I should pay upfront?

4. Do I have to inform the UK taxman about my move? I think next tax year I won't pay any tax in the UK because tax free income allowance will completely cover my pension.

5. What is a best way to file: a calendar year or a fiscal year? Can I choose? It seems if I can file from April to March like in the UK it will be easier to count my income with one only document from the UK?


I have read Convention between US and UK especially the Article 17 and 18
https://www.treasury.gov/resource-ce...s/uktreaty.pdf
but it hasn't make things any more clear.

I really prefer my daughter move to The UK, but she won't.

I would appreciate any help.
Thank you
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Old Dec 10th 2016, 4:09 am
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Default Re: First month in the US

The only thing I can answer is that for US taxes, you must file per calendar year (Jan - Dec). Tax return is due by Shortly 15th for the previous calendar year.

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Old Dec 10th 2016, 6:52 am
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Default Re: First month in the US

Originally Posted by Noorah101
The only thing I can answer is that for US taxes, you must file per calendar year (Jan - Dec). Tax return is due by Shortly 15th for the previous calendar year.

Rene
due by April 15th
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Old Dec 10th 2016, 9:05 am
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Default Re: First month in the US

Originally Posted by Asg123
due by April 15th
Yes, sorry, typo.

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Old Dec 10th 2016, 9:23 am
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Default Re: First month in the US

I suggest you file as a dual status resident for Federal purposes and a part-year resident for Virginia...but only if your income is above the filing threshold which it won't be...
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Old Dec 10th 2016, 11:34 am
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Default Re: First month in the US

2) If your visa was based on an I-130 and I-485 application then you are already a permanent resident ( you were the moment you cleared immigration), receiving the actual green card has no additional significance for tax purposes, or in fact any other purposes either.

3) You don't pay any tax "up front", but I wonder what you have done about health insurance?

Last edited by Pulaski; Dec 10th 2016 at 11:36 am.
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Old Dec 10th 2016, 11:50 am
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Default Re: First month in the US

You must inform HMRC using form P85 that you are no longer resident in the UK otherwise they will continue to tax you. I'm not sure the exact terms of the UK/US double taxation treaty but you may have to file the DTT individual form to HMRC .
do you rent out your UK house? If so then you will need to file a return to HMRC but I believe any tax you pay on the rent can be offset against any US tax due. If you leave any assets in the UK then the tax situation can become quite complex. I'm sure others with more knowledge will be along to offer advice.
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Old Dec 10th 2016, 1:52 pm
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Default Re: First month in the US

Originally Posted by Pulaski
2) If your visa was based on an I-130 and I-485 application then you are already a permanent resident ( you were the moment you cleared immigration), receiving the actual green card has no additional significance for tax purposes, or in fact any other purposes either.

3) You don't pay any tax "up front", but I wonder what you have done about health insurance?
Thanks for this information, i didn't know that. My visa based on an I-130. So, do I have to file 2016 even I don't work here? How I said my annual income is £11k. It makes about $2400 for November and December. Because I wasn't a resident before November, I should count my annual income here as $2400. And because it is lower then allowance I don't need to file 2016? Am I right?

I am on travel insurance just now. I will be going back and forward for sometime. I don't rent out my house. I need to sell it but in place where I lived market is not good at all. It will take ages to sell.
It is very confusing. I wish I could find a good inexpensive accountant to do my first tax return. I heard from few people here some of them charging a lot but making a mess with filing.
Paying all the bills in Scotland and traveling every tree months don't make my life any easier.
I realise I have to pass this stage and things will change for better.
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Old Dec 10th 2016, 4:00 pm
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Default Re: First month in the US

Your police widows pension will be classed I believe as a government service pension, and as long as you are not a US citizen, under the UK/US tax treaty can only be taxed in the UK.

You may want for at least your first tax return to ask advice from a CPA. Mine had a very unique way of dealing with my police pension, until I became a dual UK/US citizen. I was never 100% sure he was correct so I'll not advocate that others do what he did, but I think it warrants getting advice.
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Old Dec 10th 2016, 5:20 pm
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Default Re: First month in the US

Thank you, I thought my pension should qualify under Article 19. I will try to find a good adviser to fil up my first tax return.
One thing I need to deside soon will I file 2016 (two months here) or not? I prefer not to, if I don't have to.
Thanks again, you made my day
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Old Dec 10th 2016, 6:22 pm
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Default Re: First month in the US

Originally Posted by Lab_10

I am on travel insurance just now. .
I would recommend that you look into getting a full US health insurance policy as travel insurance is only for emergency treatment while one is on vacation.

Should you require medical treatment "of the everyday kind", then you might find that your travel insurance won't cover it.
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Old Dec 10th 2016, 8:36 pm
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Default Re: First month in the US

Originally Posted by SanDiegogirl
I would recommend that you look into getting a full US health insurance policy as travel insurance is only for emergency treatment while one is on vacation.

Should you require medical treatment "of the everyday kind", then you might find that your travel insurance won't cover it.
I was thinking the same thing, and the insurer may also baulk at funding short-term care for something like a heart attack, so the OP could find themselves on the hook for medical bills of $250,000 in just a couple of weeks!

As a separate issue, there may be a "tax" penalty for not having "Affordable Care Act" compliant health insurance - the size of the penalty is income dependant.
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Old Dec 10th 2016, 8:49 pm
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Default Re: First month in the US

Originally Posted by Pulaski
As a separate issue, there may be a "tax" penalty for not having "Affordable Care Act" compliant health insurance - the size of the penalty is income dependant.
If OP meets the bona fide resident test or the physical presence test from living in the UK (which she should) then the tax penalty should be waived for 2016.
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Old Dec 10th 2016, 11:57 pm
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Default Re: First month in the US

Thanks all for your advises. I realise I need to get US health insurance. I am going to look into it closely. At the moment I am resoanably healthy (I mean I don't take any medication or go to doctors on regular base). I probably need to sort it out sooner then later. Doctors in London gave me clearance to get into the US until 4th January. Just wondering is any money would be left for living after all.
It is quite scary to loose my independence even I have good children. But I can't see I can afford to survive here without their help.
The same time I am sure many people have far worse circumstances but they manage to survive.
So I have two choices: to lower my standart of living if I want to be with my children or go back to Scotland and be miserable (at list when nobody can see me� ����).
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Old Dec 11th 2016, 12:12 am
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Default Re: First month in the US

Please take a deep breath. It is not all doom and gloom and while you need healthcare in the US, with assistance from a healthcare specialist you should be able to find something you can afford.

It is a difficult time in life for you having lost your husband of many years. Learning to live alone without being lonely is something many people never seem to learn t do.

Being in the US with your children and grandchildren can be wonderful for you if you all get along. You do need to sit down and figure out just how much money you will have to live on monthly from your husband's pension and one day from your retirement benefits from the UK.

Once you have determined your income then you need to sit down with your children and discuss how and where you are to live. They have been in the US for a while and should be able to help you with questions about apartments, areas to live (if you are not staying with one of your children) and what jobs, if any, you are or might be able to get. It might only be part time work in retail but it will bring a little extra money and will get you out of the house.

The people you need to talk with are not here on this forum which is populated in the majority by 20, 30 and 40 year olds. The people you need to talk to are your children.

Good luck to you.
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