dee1040

Hello,

I'm freelance and am currently based in the UK but have just received my EB1 visa so am about to apply for the green card. My plan is to move to the US to find work but I will also be coming back and forth to the UK to continue working with clients here so basically I will be working in both countries.
Can someone advise me on how things work with regard to tax? Where do I pay tax, what other taxes will I be looking to pay in the US and how much roughly I should be looking at spending on medical insurance? I would be very grateful for any help...

tonrob

I'll start the ball rolling and say that you have to pay US tax as a Legal Permanent Resident, but that does not mean that you do not need to pay UK tax.

You also need to make sure that you can maintain your LPR status given the time you will spend outside of the US.

Michael

You'll need to consult with a tax attorney to get the real answer. As a LPR, you must indicate worldwide income on you US tax returns but normally you can use foreign taxes paid to offset any US taxes owed. However the offset may or may not allowed by the IRS if you are working in the UK for short periods since the IRS may think that the taxes should be paid to the US government instead.

Bob

Also don't forget to set aside all the taxes that an employer would pay on top, which you would now have to pay.

You can find the rates by looking at the IRS website, as well as your state you will be living in.

As for medical insurance, that's been covered to death and you'll find loads of threads if you look back a page or two, if one isn't on the first page already...that and the wiki.

md95065

Also, be aware that as a US permanent resident you are subject to the FBAR reporting requirements

nun

First use google to see how freelancers are taxed in US. I assume you know about the UK already

If you are a UK citizen LPR in the US you will be UK non-resident. As a LPR the US will tax your worldwide income and the UK will tax any UK source income you have which means any income you get from work done in the UK. You'll also be responsible for NI in the UK and FICA in the US. I don't know much about hove self-employed are taxed, but i bet it is more complicated than personal taxation.

janette

I work in both countries and the tax situation is far more complicated than it should be! As a LPR you must declare all income, wherever it is earned, but just because you are a LPR doesn't mean that HMRC view you as non-resident in the UK. It seems to depend how much work you do there. I seem to be resident in both countries for tax purposes and have had extra tax to pay in the UK because of my US income. Company accountants seem to think this is correct as they work out the tax returns. There are tax treaties to prevent double taxation but they don't mean you will not be liable for additional tax in either/both countries. This is an area that is NOT a DIY job and I would certainly recommend getting qualified advice.

dee1040

I am very grateful for all your comments regards to my query. Thanks so much for taking the time.
It seems like it really depends on individual cases.