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

Preparation, understanding finance

Preparation, understanding finance

Old Jul 1st 2016, 8:26 am
  #1  
Just Joined
Thread Starter
 
Joined: Jul 2016
Posts: 5
loriw is an unknown quantity at this point
Default Preparation, understanding finance

Hi

I'm looking for advice and comments.

I was born in the USA but live in the UK. I have dual nationality but have never worked in the US. My two sons also have dual nationality. My husband is British. My husband is 56, I'm 53 and our two sons are 25 and 15..

Given family ties in the USA, better lifestyle, prospects etc we are considering a move from the UK to the South Carolina.

I have a number of questions.

Should we get I-130 sorted before we arrive in the USA and why?

Will any money (house sale and savings) we bring with us be taxed on entry to the US?

We should have enough money to buy more than one property and we plan on renting out to provide us with a small income. This is normal in the UK, is it feasible to rent out in say a college town?

I have a small uk private pension. My husband has a few private pensions and the ability to take a tax free lump sum. I assume this will be taxed if he brings the money into the USA?

Gulp. I never realised I was supposed to do a US tax return! Am I going to get into trouble? Will they back date?

Thanks for reading.
loriw is offline  
Old Jul 1st 2016, 11:43 am
  #2  
MODERATOR
 
Noorah101's Avatar
 
Joined: Apr 2003
Location: Phoenix, Arizona
Posts: 58,208
Noorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond repute
Default Re: Preparation, understanding finance

Since most of your questions are about finances, i'm leaving this post here. But please ask about your husband's immigrant visa process over in our marriage-based visa forum. We have a good Wiki on the CR-1/IR-1 Immigrant Visa process you can read as well.

Rene
Moderator
Noorah101 is offline  
Old Jul 1st 2016, 11:45 am
  #3  
MODERATOR
 
Noorah101's Avatar
 
Joined: Apr 2003
Location: Phoenix, Arizona
Posts: 58,208
Noorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond repute
Default Re: Preparation, understanding finance

You won't get in trouble for not filing taxes all these years, but as part of your husband's visa process, you should file the most recent 3 years of tax returns.

Rene
Noorah101 is offline  
Old Jul 1st 2016, 12:38 pm
  #4  
Lt Cl (Rtd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 49,057
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Preparation, understanding finance

Originally Posted by loriw View Post
..... I was born in the USA but live in the UK. I have dual nationality but have never worked in the US. My two sons also have dual nationality. My husband is British. My husband is 56, I'm 53 and our two sons are 25 and 15..

Given family ties in the USA, better lifestyle, prospects etc we are considering a move from the UK to the South Carolina. .....
SC is an interesting choice for a better lifestyle and prospects. Do your sons have degrees, or vocational qualifications?
.... Will any money (house sale and savings) we bring with us be taxed on entry to the US? ....
You are not taxed on moving money you already own.
.... We should have enough money to buy more than one property and we plan on renting out to provide us with a small income. This is normal in the UK, is it feasible to rent out in say a college town? .....
Yes, but you might have problems with insurance if renting to students. About one third of the US population rents their home, so there is a vibrant rental market pretty much everywhere in the US.
.... I have a small uk private pension. My husband has a few private pensions and the ability to take a tax free lump sum. I assume this will be taxed if he brings the money into the USA? ....
As US residents you will be taxed on your global income whether you bring the money into the US or not. The US does not recognize the 25% tax free lump sum withdrawal that is allowed in the UK.
..... Gulp. I never realised I was supposed to do a US tax return! Am I going to get into trouble? Will they back date? ....
Don't panic it's not a big deal. It is very difficult for a British resident to owe US taxes due to allowances and tax credits. Do the last three years to catch up and you'll be fine.

You and your sons will need US passports if you don't already have them. .... BTW You say you are a US citizen, but when did you leave the US? In order to pass on citizenship to your sons you need to have lived in the US for at least five years, with two of the years after your 16th birthday.

Last edited by Pulaski; Jul 1st 2016 at 12:47 pm.
Pulaski is offline  
Old Jul 1st 2016, 1:02 pm
  #5  
Just Joined
Thread Starter
 
Joined: Jul 2016
Posts: 5
loriw is an unknown quantity at this point
Default Re: Preparation, understanding finance

Thanks everybody for replying.

The three of us already have American passports. Social security numbers for myself and eldest son are sorted.

I lived in Illinois and have visited a number of times since. I don't want the cold winters.

I have family in Virginia and South Carolina. We really liked both but we were really taken with the lifestyle. Seems a good quality of life, warm weather with lower taxes.

We go to California next month but are thinking it'd be too expensive for us to live but let's see. My eldest has plans to live there as he spent 6 months there last year.

Any suggestions for us? We are open minded!

We want our youngest to get his A'levels so it'll be 3 more years. He'll most probably go into a sport related job like physio therapy.

This will give us time to prepare to sell our family business. So we're commencing a long exit plan.

Hopefully Brexit chaos will be settling by then and our house price will be ok. Fortunately, we live in a desirable area that historically hadn't been affected by any recession so fingers crossed.

One step at a time.
loriw is offline  
Old Jul 1st 2016, 5:02 pm
  #6  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 44,022
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default Re: Preparation, understanding finance

Not answered but YES, you need to get your husband's visa first before you enter the US. That means filing for him at the US Embassy in London, known as direct consular filing.

You cannot just waltz him into the US. It is fraudulent as he would have entered the US with the express intent to emigrate without the proper visa.

Please do as Rene suggested and ask about filing his I-130 in BE's US marriage-based visa forum.
Rete is offline  
Old Jul 1st 2016, 7:55 pm
  #7  
Just Joined
Thread Starter
 
Joined: Jul 2016
Posts: 5
loriw is an unknown quantity at this point
Default Re: Preparation, understanding finance

Thanks

I'm not sure what I didn't answer?

Myself and two sons have citizenship. My eldest is a tree surgeon and my youngest is still at school.

I've got the I-130 form etc. To submit to the uk embassy. It takes up to 10 months to process.

I'll submit tax returns for the last three years. I guess I need to contact the embassy as I've no idea how I go about this. Online?

Is there something we need to know about SC?

Are we crazy to consider that we can get work in our 50s? We hope to work part-time, supplement our income through renting.

Thanks for your advice
loriw is offline  
Old Jul 1st 2016, 8:17 pm
  #8  
Deep in the woods of CT
 
Nutmegger's Avatar
 
Joined: Feb 2010
Posts: 6,032
Nutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond repute
Default Re: Preparation, understanding finance

Originally Posted by loriw View Post
Thanks

I'm not sure what I didn't answer?
I think Rete meant that your query on that particular topic (your husband's visa) had not been answered, so she was answering it!
Nutmegger is offline  
Old Jul 1st 2016, 10:09 pm
  #9  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 44,022
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default Re: Preparation, understanding finance

Exactly. Thanks, Nutmegger.
Rete is offline  
Old Jul 2nd 2016, 12:36 am
  #10  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,773
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Preparation, understanding finance

Another thing to consider, for your son's, well the eldest at least.

Has he filed for SS? Male, USC's between 18-26 years of age need to file for selective service and if they don't, it can affect them with regards to certain federal benefits such as student loans.
Bob is offline  
Old Jul 3rd 2016, 5:08 am
  #11  
BE Forum Addict
 
Joined: Mar 2008
Location: Santa Cruz, CA
Posts: 4,896
md95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond reputemd95065 has a reputation beyond repute
Default Re: Preparation, understanding finance

The OP should probably also start to research the likely cost of health insurance as part of her planning process.
md95065 is offline  
Old Jul 3rd 2016, 8:38 am
  #12  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,684
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Preparation, understanding finance

Originally Posted by md95065 View Post
The OP should probably also start to research the likely cost of health insurance as part of her planning process.
Excellent point, also worth looking into Medicare eligibility as it may to be tough, given their ages, to get in 10 years of working to get the normal insurance rate.

https://www.medicare.gov/eligibilitypremiumcalc/
durham_lad is offline  
Old Jul 3rd 2016, 9:09 am
  #13  
BE Enthusiast
 
Joined: Nov 2012
Posts: 823
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: Preparation, understanding finance

I expect that you will use think of using the IRS streamlined procedures to help you catch up with your delinquent income tax returns, informational returns & FBARs. These may include you owning and reporting some PFICs and possibly - Forms 3520 and 3520-A for your UK pension plan. This is vital. If your UK property has grown in value and/or you have a mortgage on it you may want your husband to gift it to you before he becomes a US person.
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 - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.