Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Help! Complicated tax questions

Help! Complicated tax questions

Old Aug 30th 2017, 9:35 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Jul 2007
Location: Huddersfield,UK
Posts: 30
melusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond reputemelusine has a reputation beyond repute
Default Help! Complicated tax questions

Hello - I'm trying to get my head around tax issues with our move. I appreciate this is a complex area and I will possibly need to take expert advice but I'm hoping someone may have encountered a similar situation previously and might be able to point me at the right sort of information.


My situation is as follows:


I am being made redundant - my official redundancy date and the current proposed date of my redundancy payment is mid Feb 2018. I may be able to bring this forward to an earlier date if it seems financially advantageous to do so.


I currently don't know exactly when work will let me go and on what basis - they might put me on garden leave soon or they might ask me to work up until mid-February.


We expect to have our Visas in hand by the end of October 2017 so in theory, if I am placed on garden leave, I could enter the US from around early November onwards. If this is possible I would like to do so as my husband flies out to start his now job this week (in Malvern, PA).


What I can't work out is whether I would take a substantial tax hit if my redundancy is paid out after I have entered the USA as a new resident. In the UK the first £30K of redundancy is tax free and I am worried that I would somehow lose the tax free status of this payment if it becomes taxable by the US rather than the UK - or that the whole redundancy payment would somehow be subject to double taxation because of the overlap in tax years and residency for tax purposes.


If anyone can shed any light on this I'd be very grateful!
Melly
melusine is offline  
Old Aug 31st 2017, 7:00 am
  #2  
BE Enthusiast
 
Joined: Nov 2012
Posts: 899
Cook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond repute
Default Re: Help! Complicated tax questions

If you are a US resident when you receive income you are taxable by the US. As based on your previous posts your husband is a USC, he might have optimised his US returns for the past 10 years to generate the maximum excess foreign tax credit carryovers. When you file jointly in the future you may have more than enough excess foreign tax credits for this not to matter...
Cook_County is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.