IRS and Tax
#16
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Re: IRS and Tax
While you remain resident in the UK your wife should file "married separately". It will avoid lots of complications. Don't open yourself up to the IRS and US until you have to. Once you are in the US you and your wife will need to decide whether to file jointly of separately.
Before you join your wife in the US make sure you fully understand the US tax implications of your UK business and any UK investments you hold as when you become US resident the IRS will tax you on your worldwide income. In many cases it's a good idea to sell your investments and move them to the US as there are complex and potentially expensive rules about holding foreign investments and accounts. If you decide to keep them make sure you understand FBAR, FATCA and PFIC rules......any UK pensions, stocks and shares ISAs or unit trusts will be particularly troublesome. You business will also be a complication.
Before you join your wife in the US make sure you fully understand the US tax implications of your UK business and any UK investments you hold as when you become US resident the IRS will tax you on your worldwide income. In many cases it's a good idea to sell your investments and move them to the US as there are complex and potentially expensive rules about holding foreign investments and accounts. If you decide to keep them make sure you understand FBAR, FATCA and PFIC rules......any UK pensions, stocks and shares ISAs or unit trusts will be particularly troublesome. You business will also be a complication.
I am a partner of the UK business and a director but I shall be resigning as both before joining my wife so hopefully that won't cause any issues?
I do have an ISA but I can close it before also.
Rob
#17
Re: IRS and Tax
If you maintain any stock options or shares in the company you'll have to file both US and UK taxes. Do you know how you'll invest your money once in the US? Do you have any UK pensions? Will you be working in the US and are you going to pay voluntary Class 2 NI contributions? What are you going to do for health insurance once in the USA? Just some of the questions you should research.
#18
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Re: IRS and Tax
If you maintain any stock options or shares in the company you'll have to file both US and UK taxes. Do you know how you'll invest your money once in the US? Do you have any UK pensions? Will you be working in the US and are you going to pay voluntary Class 2 NI contributions? What are you going to do for health insurance once in the USA? Just some of the questions you should research.
Rob
#19
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Re: IRS and Tax
Do I need to inform HMRC that I'm married to a USC?
Rob
Rob
#20
Re: IRS and Tax
No. Your taxed under a personal allowance if you are emplyed, your marital status is not relevent.
#22
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Re: IRS and Tax
Hi guys
My wife is just filing her return as Married-Individual but she can't post it electronically with out a tax ID number for me. I'm a non alien resident waiting for her I-130 petition to be processed and am currently residing in the UK. Please can someone tell me if this is right or not?
My wife is just filing her return as Married-Individual but she can't post it electronically with out a tax ID number for me. I'm a non alien resident waiting for her I-130 petition to be processed and am currently residing in the UK. Please can someone tell me if this is right or not?
#23
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Re: IRS and Tax
Ian
#24
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Re: IRS and Tax
I don't want a TIN yet, it will only complicate matters.
#27
Re: IRS and Tax
Hi guys
My wife is just filing her return as Married-Individual but she can't post it electronically with out a tax ID number for me. I'm a non alien resident waiting for her I-130 petition to be processed and am currently residing in the UK. Please can someone tell me if this is right or not?
My wife is just filing her return as Married-Individual but she can't post it electronically with out a tax ID number for me. I'm a non alien resident waiting for her I-130 petition to be processed and am currently residing in the UK. Please can someone tell me if this is right or not?
If an ITIN is requested, then your worldwide income has to be included on her return and taxes owed to the IRS may be able to be offset by foreign taxes paid.
Last edited by Michael; Jan 20th 2013 at 5:00 pm.
#28
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Re: IRS and Tax
Do you mean that she is filing "Married Filing Separately"? If that is the case, then your name and social security number is not required. She can't file "Married Filing Jointly" to get the tax benefits unless you opt to be classified as a "resident alien" for tax purposes and then you will need either a social security number or an Individual Taxpayer Identification Number (ITIN) which can be requested when the tax return is filed but the return must be filed via snail mail.
If an ITIN is requested, then your worldwide income has to be included on her return and taxes owed to the IRS may be able to be offset by foreign taxes paid.
If an ITIN is requested, then your worldwide income has to be included on her return and taxes owed to the IRS may be able to be offset by foreign taxes paid.
Thank you all for your valued input
#29
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Joined: Nov 2012
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Re: IRS and Tax
She cannot file at all yet as the IRS is not open for business yet for 2012 returns.
She can put NRA in the box for spouse SSN until you have an ITIN or SSN and file MFS.
You will want to compare with making a 6013(g) election and filing jointly if this saves you tax overall.
She can put NRA in the box for spouse SSN until you have an ITIN or SSN and file MFS.
You will want to compare with making a 6013(g) election and filing jointly if this saves you tax overall.