Living in US with bank accounts in UK
Hi all,
Looking for some advice/links to helpful websites. I am a UKC who has been living in the US for nearly 2 years now. I am here on an E2 visa, but have my AOS interview next week, so could be a green card holder very soon. I married a USC 6 months ago. Obviously, my plan is now to stay in the US permanently; this was not the case when I originally left the UK, so I left all my bank accounts in tact, and didn't really give much thought to them (not a good plan, I know!) So now I'm starting to worry about whether I should even have these UK accounts, and what I need to do about them. I have a current account that I use to pay direct debits to the student loan company, a cash ISA with less than 1000GBP in it, and a savings bond that is holding money given to me by a relative - a larger amount than the ISA. Questions: 1. I understand that all worldwide earnings must be declared when filing a tax return - now neither my cash ISA nor my bond earned any interest in tax yr 2011; they ONLY received interest (for the first time) in 2012 - so my plan is to declare that interest as earnings when I file 2012 taxes. Is this right? 2. Is my mum allowed to pay money into my cash ISA while I'm living here? You see she wants to save money for me, but not sure what the rules are on this. 3. Is there anything else I should be aware of about these accounts in the UK? I feel really worried that there's something I'm not doing that could land me in hot water further down the line. Thank you. |
Re: Living in US with bank accounts in UK
You cannot contribute to an ISA as a non-resident of the UK, though you can keep the ISA account. Have a look at FATCA and FBAR and see if you need to report these accounts to the IRS or Treasury. Any interest earned should be reported on the US tax return for the corresponding year.
I'm sure an expert will be along to correct any mistakes I've made shortly :) |
Re: Living in US with bank accounts in UK
Nothing really has changed, the concerns and issues are exactly the same as when you first moved here :/
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Re: Living in US with bank accounts in UK
Ok - looks like I may need to submit the FBAR - anyone know whether a person on an E2 needs to? Will call the helpline to check if no one on here can confirm.
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Re: Living in US with bank accounts in UK
Originally Posted by icybluesmile
(Post 10086734)
Questions:
1. I understand that all worldwide earnings must be declared when filing a tax return - now neither my cash ISA nor my bond earned any interest in tax yr 2011; they ONLY received interest (for the first time) in 2012 - so my plan is to declare that interest as earnings when I file 2012 taxes. Is this right? 2. Is my mum allowed to pay money into my cash ISA while I'm living here? You see she wants to save money for me, but not sure what the rules are on this. 3. Is there anything else I should be aware of about these accounts in the UK? I feel really worried that there's something I'm not doing that could land me in hot water further down the line. Thank you. |
Re: Living in US with bank accounts in UK
Originally Posted by icybluesmile
(Post 10086787)
Ok - looks like I may need to submit the FBAR - anyone know whether a person on an E2 needs to? Will call the helpline to check if no one on here can confirm.
|
Re: Living in US with bank accounts in UK
Ok - thanks. I am looking at the e file procedures now for the FBAR - but the website isn't working for me to submit a new password in the registration process. :confused:
I opened the bond and ISA April 2011 - If I file the FBAR now, is it considered late? |
Re: Living in US with bank accounts in UK
Originally Posted by icybluesmile
(Post 10086856)
Ok - thanks. I am looking at the e file procedures now for the FBAR - but the website isn't working for me to submit a new password in the registration process. :confused:
I opened the bond and ISA April 2011 - If I file the FBAR now, is it considered late? |
Re: Living in US with bank accounts in UK
Yes, they were worth more than 10K$
Am trying to file, but website won't work and helpline closed until tomorrow. Will try again in then. Does anyone happen to know if I should have declared these accounts on my 2011 tax return? They didn't earn interest in 2011. And do you declare al interest, even if only 5 pence? |
Re: Living in US with bank accounts in UK
Originally Posted by icybluesmile
(Post 10086911)
Yes, they were worth more than 10K$
Am trying to file, but website won't work and helpline closed until tomorrow. Will try again in then. Does anyone happen to know if I should have declared these accounts on my 2011 tax return? They didn't earn interest in 2011. And do you declare al interest, even if only 5 pence? The form doesn't ask for your interest earned. You are only reporting to the US Treasury the maximaum value in your foreign accounts during each calendar year if you have over $10k. It's not about income tax. It's a disclosure of what you have outside the US. 2011 calendar year- report due June 2012 2010 calendar year- did you have more than $10K? -was due June 2011 but you can report it late. |
Re: Living in US with bank accounts in UK
Originally Posted by icybluesmile
(Post 10086911)
Does anyone happen to know if I should have declared these accounts on my 2011 tax return?
|
Re: Living in US with bank accounts in UK
Thanks for all the advice.
I am now sure I need to send in the FBAR for 2010 and 2011. From what I've read, I could face a penalty for sending the 2010 one in late. I'm now trying to find out if these accounts should have been declared on my tax returns - a tax accountant has done my returns both years, and I felt sure that on the organizer she gave me, it said if EARNINGS were over 10,000$ from outside US - but perhaps it didn't? Perhaps it's any interest at all? I've emailed her to find out. |
Re: Living in US with bank accounts in UK
Originally Posted by icybluesmile
(Post 10086989)
Thanks for all the advice.
I am now sure I need to send in the FBAR for 2010 and 2011. From what I've read, I could face a penalty for sending the 2010 one in late. I'm now trying to find out if these accounts should have been declared on my tax returns - a tax accountant has done my returns both years, and I felt sure that on the organizer she gave me, it said if EARNINGS were over 10,000$ from outside US - but perhaps it didn't? Perhaps it's any interest at all? I've emailed her to find out. The FBAR is actually not a tax form. It's an informational form you send to the Treasury.....not the IRS. You must file FBARs if the value of your foreign accounts is over $10k...the FBAR has nothing to do with earnings! |
Re: Living in US with bank accounts in UK
To clarify the FBAR process for personnel moving out halfway through the US tax year. Is it the maximum reached during the year (i.e. when in the UK) or the total at the end of the year (i.e. probably not over the threshold once all has been moved to the US on emigration).
Thanks |
Re: Living in US with bank accounts in UK
Originally Posted by anro15
(Post 10087344)
To clarify the FBAR process for personnel moving out halfway through the US tax year. Is it the maximum reached during the year (i.e. when in the UK) or the total at the end of the year (i.e. probably not over the threshold once all has been moved to the US on emigration).
Thanks |
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