daveyboy1984

Hi, me and my wife has recently moved to the US.

We've been told we need to file a tax return for Jan-Dec 16, even though we've just got here. The likelihood is that we won't have earned any money in the US this tax year, or if we do it won't be much at all, so really don't want to have to pay an accountant to file the return.

Is there a way we can easily do a 'nil' return ourselves?

Also, I'm looking to setup an LLC. Is it best if I don't do this until the new year for tax implications?

Thanks as always!

Rete

Who told you this?

tom169

I had a similar thread:

http://britishexpats.com/forum/usa-5...status-887222/

As for LLC, probably want to wait until start of next year?

ian-mstm

Perhaps a moderator will move this to the USA forum. These aren't immigration-related questions... they're tax questions.

Ian

daveyboy1984

I should say that we both have UK accounts and have made through them in the April 15-16 Tax Free. Also, we'll be making an income through Rental of our UK property whilst in the US.

Everyone I've spoken to, expats, have had to file returns no matter what or if any income.

Not sure how to go about moving this post.

neill

You're dual-status residents for 2016. You file both a 1040 and a 1040-NR. The 1040-NR will cover the section of the year you weren't resident in the US for tax purposes.

https://www.irs.gov/individuals/inte...-status-aliens

tom169

OP should qualify that they are now a resident alien (https://www.irs.gov/individuals/inte...ien-tax-status)

Rete

Of course they had to file but not before the end of the tax year but after the end of the tax year.

Pulaski

Calm down! Tax returns for 2016 aren't due until the middle of April 2017.

Cook_County

What visa status does the OP have?

Noorah101

O-1.

Rene

ian-mstm

For future reference, here's a hint... if you click on someone's username, you have the option to review their prior posts.

Ian

Owen778

Unless the OP has already spent a lot of time in the US before actually moving, this is probably wrong.

To Daveyboy. You are tax resident in the US if you either 1) fulfill the substantial presence test, or 2) are a permanent resident. You don't fulfill 2) if you have an O-1 visa. Look at the substantial presence test here, and see if you meet it. Given your previous posts, it seems unlikely.
https://www.irs.gov/individuals/inte...-presence-test

Assuming you don't pass that, if you have no income in the US, you won't have to file a return. If you have US-sourced income, you might have to file a non-resident return, I don't know the details for this.

Have you told HMRC that you've left the UK? You need to do this using the P85 form, which can be filled out online or posted, here: https://www.gov.uk/government/public...-tax-right-p85

Aoi

I used taxact.com online for the 2015 dual status returns. I found the Step by Step guidance very helpful.

Steve_

Read IRS publication 519, although bear in mind a lot of it is a tad irrelevant because they bang on about the substantial presence test which is overridden by the relevant tax treaty. Which basically says your "centre of vital interests" is where you reside. But nobody really knows the answer to that except you and it's not likely they're going to ask for proof if you've got no US-source income this year.

But yeah technically you're dual status for 2016. If you've been in the US less than 183 days this year and had no US-source income then there is no reason to file, just start for the 2017 tax year. There are things that can tip the IRS off to your presence though, but I wouldn't worry about it, the non-resident dept. seems to be very understaffed based on my experience the last couple of years. They only become aware of your presence when someone spits out a 1099 or W-2 with your SSN on it. Have you opened a bank account yet and filled in a W-9 with your SSN? That will generate a 1099 from the bank. But the interest will be peanuts, so way under the reporting limit.

Best practice is that you do file though, stops the IRS coming back and changing their mind later on. So, a blank 1040NR for the first part of the year and a nearly blank 1040 for the second part of the year (you'll report the piddling amount off the 1099) and write dual-status return on the 1040 and dual-status statement on the 1040NR.

Key bit is to file a P85 with HMRC if you're coming from the UK.