tokolosheman

Our time is up and we leave the US in October.

When i file my taxes do i base it on what i actually earned in 9 months or what I would have earned if i had been here for 12? I would be due a big refund if the former is correct also would that mean i am claiming tax residency for the full year and what would that mean to my UK taxes in oct, nov & dec 2010?

Duncan Roberts

What is your status in the US? For some you would need to include anything you earned in the UK in the 3 months of the tax year, a US citizen or PR wanting to keep their status up for instance. However, the US part is just what you earned in the US in the tax year. You will still get a W-2 when the time comes to make things easy so make sure that your employer has a current address.

SDDep

See below...this may help...

tokolosheman

I am on a working visa and will have only been out of the US for 2 weeks before leaving at the start of october.

Duncan Roberts

You should only need to report your actual US earnings. Regardless of reporting worldwide income, which doesn't sound like you need to, you would never have to report fabricated earnings just to make your working time up to 12 months.

Peter Newton

It sounds like you'd qualify for dual-status treatment for 2010. In this case you are treated as US resident up until the day you leave, and you would then become UK resident on that day.

This only works if you can show that your tax home becomes the UK and you have a closer connection to the UK. But if you are leaving at the end of a temporary employment contract to return home this generally satisfies the conditions.