Rach123

Hi there, I hope someone can help me. I apologise in advance if someone has asked the same questions before, but......

Ok, I moved here in November 08, and it is now time to file my taxes! I will be using my boyfriends tax specialist, but I am at a loss, as to what to do. I have just received my W2. The questions I have are with regards to my earnings in the UK up until I left, and what information I need to give the tax specialist.

I informed the Inland revenue in the UK before I left, and they just told me to write to them once I had left giving them my new address, which I did.

Now, I work from home, and my address is my registered business address, I transfered on an L1B with my company. Therefore I have an office at home.

I know I need to prepare information for the tax specialist for any expenses incurred for work, but what about office space? How does that work?, also do I need to do anything with regards to the tax I paid up until November last year in the UK? I have my p60.

If anyone can shed some light on this, I would be most grateful.

Apart from that I am loving it here, and I want to say a big thankyou for all the people that helped me out when I was trying to get here.

Thanks in advance

Rach

Bill_S

Re: home office space and US taxes. The IRS guidlines for the "home office deduction" are here. The key is "exclusive use". You can't take the deduction unless you use the home office space for work and nothing else. I believe there's a lot of record-keeping required for this as well; I know that many people who work at home don't bother trying to take this deduction; I have no idea if it will be worthwhile for you.

Rach123

Thanks,

I don't think I will bother with that then, as the utility room is up there too.

hobbes79

Did your company cover all moving expenses? If not, a deduction could be made for that.

Rach123

My plane ticket? does that count? im living with my boyfriend so theres no housing costs.

hobbes79

More than likely. Check with your tax guy though.

Poppy girl

Are you classed you as an employee in the US or an independent contractor?

Rach123

I am an employee

Poppy girl

The reason I asked I am an independent contractor myself, and thought I might be able to help with the deductions.

Rach123

ahh, well thanks anyway

rew1000

Sounds like you've got a tax guy to help you out, but if you're interested, almost everything about paying tax here as a foreigner (or "alien"!) is in IRS Publication 519.

Since you arrived here most of the way through the year, and you don't have a green card, the IRS considers you to be a "nonresident alien" for 2008. (IRS ideas of residency are separate from other ideas of residency).

The tax rules for nonresident aliens are different from those for "resident aliens" (who are basically taxed like citizens). This can mean that a lot of the usual way people do their taxes are not applicable, so it might be worth making sure that anyone advising you knows what they're talking about.

As a nonresident alien, in general you're only taxed on US-source income, so you wouldn't have to worry about the income you earned in the UK. Unfortunately the tax rate can be higher, and you can't deduct a lot of things that residents/citizens can.

There is another way of doing your tax the first year called "dual status" in which you split the year into the bit before you arrived, and the bit after. Then you would be a "resident alien" for the bit after you arrived which could work out better.

Hope this helps - if you can face it, Pub 519 has chapter and verse...

Rach123

Thanks, I shall study this