British Expats

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-   -   Tax implications?? (https://britishexpats.com/forum/usa-57/tax-implications-942017/)

shaundolan70 Dec 21st 2021 1:22 am

Tax implications??
 
Hi All, I’m a new member to the group so looking for a little help and guidance please.

I recently married a US girl and are going through the long tedious process of changing my status to permanent Residency. I have a 2 pronged question if I may?
Firstly, I currently hold a job with a British company, but due to marrying in the US I am stuck here until such time my I-131 is processed! To date this has been 5 months since processing the paperwork, so can anyone advise on how we go about processing a US tax return at the end of the year? And if so what is required from me since I’ve not worked in the US this year? Also on a second note does anyone know how I can push along the I-131 travel document? There seems to be no way of actually speaking to someone about my case? They make it incredibly difficult to get to where you need to be..
Any help and a push in the right direction will be appreciated.
Thanks in advance.

Noorah101 Dec 21st 2021 7:52 am

Re: Tax implications??
 
Hello and welcome to BE.

The second answer is: You can't push it along. It will take a long as it takes.

The first answer...I am surprised the British company is holding your position open for you at all. You know you cannot work until you have your EAD in hand, right? It doesn't matter that the company is located outside the USA. What matters is that you are physically in the USA. The good news is that if you did work before getting your EAD, USCIS usually forgives this when married to a USC.

As for taxes, you and your wife can file a joint tax return, listing both of your world wide incomes.

Rene

Glasgow Girl Dec 21st 2021 3:49 pm

Re: Tax implications??
 
Just a word of warning on the I-131. I did mine back in the late 90s and long story short, for months they kept telling me it would be processed shortly. About two weeks before I was due to travel back home for an important and long standing trip they told me it would be issued in a few days. Heard that a few times and in the end I went down to the immigration center in San Antonio, Texas two days before my trip to see what was going on. When I arrived they told me it was only issued for life or death emergencies. I did get it in the end but only because I made such a scene in the office that they thought I was having a medical emergency and had to take me into their back offices At that point I refused to leave until they explained all the BS I has been fed. I did get it but only because of that. So, beware, hopefully they are not as erratic now as they were then but in these Covid times I would not be surprised to find out that they will only issue if an outright emergency,

S Folinsky Dec 21st 2021 5:46 pm

Re: Tax implications??
 

Originally Posted by Glasgow Girl (Post 13082839)
Just a word of warning on the I-131. I did mine back in the late 90s and long story short, for months they kept telling me it would be processed shortly. About two weeks before I was due to travel back home for an important and long standing trip they told me it would be issued in a few days. Heard that a few times and in the end I went down to the immigration center in San Antonio, Texas two days before my trip to see what was going on. When I arrived they told me it was only issued for life or death emergencies. I did get it in the end but only because I made such a scene in the office that they thought I was having a medical emergency and had to take me into their back offices At that point I refused to leave until they explained all the BS I has been fed. I did get it but only because of that. So, beware, hopefully they are not as erratic now as they were then but in these Covid times I would not be surprised to find out that they will only issue if an outright emergency,

Back in the day, the regulatory requirement of “emergent” was often the victim of a false cognate with “emergency.” The minions of the dark forces finally came around to realizing that “emergent” was quite different than “emergency.”

SanDiegogirl Dec 21st 2021 5:58 pm

Re: Tax implications??
 

Originally Posted by shaundolan70 (Post 13082704)
Hi All, I’m a new member to the group so looking for a little help and guidance please.

I recently married a US girl and are going through the long tedious process of changing my status to permanent Residency. I have a 2 pronged question if I may?
Firstly, I currently hold a job with a British company, but due to marrying in the US I am stuck here until such time my I-131 is processed! To date this has been 5 months since processing the paperwork, so can anyone advise on how we go about processing a US tax return at the end of the year? And if so what is required from me since I’ve not worked in the US this year? Also on a second note does anyone know how I can push along the I-131 travel document? There seems to be no way of actually speaking to someone about my case? They make it incredibly difficult to get to where you need to be..
Any help and a push in the right direction will be appreciated.
Thanks in advance.


deleted

tom169 Dec 21st 2021 8:09 pm

Re: Tax implications??
 
For tax you'll need an SSN or ITIN. SSN won't be issued until you have an EAD (I hope you applied for one - your post wasn't too clear on what you've applied for other than I-131).

Anyway, if paper filed a note can be included to deem you as a tax resident for the entire year. You probably want to speak to an accountant to find out if this is worth it or not based on your income and assets outside of the USA.

shaundolan70 Dec 27th 2021 5:27 pm

Re: Tax implications??
 

Originally Posted by tom169 (Post 13082925)
For tax you'll need an SSN or ITIN. SSN won't be issued until you have an EAD (I hope you applied for one - your post wasn't too clear on what you've applied for other than I-131).

Anyway, if paper filed a note can be included to deem you as a tax resident for the entire year. You probably want to speak to an accountant to find out if this is worth it or not based on your income and assets outside of the USA.

Hi Tom, thanks for the reply, I work for a British based company so didn’t think I had to apply for an EAD? As far as I was concerned (and maybe you can tell me otherwise) I was going to continue working outside the US for the time being. So we actually hired an attorney and we were advised by our attorney to file just a change of status and a travel document that would allow me to leave the country whilst my green card was still being processed so I can continue working.
Nothing was mentioned that I could apply for an EAD otherwise I would of done this at the start of the process.
I would love to get your take on if the attorney has misguided me.
As for the tax I do have an ITIN so my wife is going to file this but before hand we will speak to an accountant. Thanks in advance, Shaun

Noorah101 Dec 27th 2021 7:26 pm

Re: Tax implications??
 
You can work for the UK company for your first 90 days in the USA after entering on the K1. After that, you will need an EAD, unless you physically go to the UK to do the work. It doesn't matter where the company is based, what matters is where you physically are.

You can still apply for the EAD at no cost to you. I highly advise doing this.

Rene

shaundolan70 Dec 27th 2021 7:41 pm

Re: Tax implications??
 
Hi Rene,
Thank you for your reply,

I haven’t worked in the US, like I said, I work for a U.K. based oil and gas inspection company and my work takes me around the world but I haven’t worked within the US.

I’m wondering if it’s in my interest to apply for an EAD? Is this a quick turn around and do you know what the time scale on approval is with this document? I assume I can then work within the US with an EAD whilst awaiting the green card process?
Thanks again,
Shaun





Noorah101 Dec 27th 2021 8:15 pm

Re: Tax implications??
 
As I said, it does not matter where the WORK is. It matters where YOU are. You can't legally work past your first 90 days in the USA unless you have an EAD in hand, even if the company is located outside the USA.

File the I-765 ASAP. no cost to you, and include proof that you filed an I-485.

It will take as long as it takes these days. I don't know how long, probably a few months at least. The EAD is what gives you permission to work (for the UK company) while you are physically in the USA waiting for AOS. The sooner you file, the sooner you'll have it in hand.

Rene

Owen778 Dec 28th 2021 4:50 am

Re: Tax implications??
 
I think the two of you (Shaun and Noorah) are talking at cross purposes.

Shaun, I think you're saying that you're actually going to international worksites to do the inspections, so not technically working while physically located in the US?

To me, I don't see that you would need an EAD to do that, and you have advice from your attorney. Certainly getting the travel document is more important.

That said, you legally wouldn't be allowed to do any work in the US, and that would include things like writing post-inspection reports. Personally, I'd be looking to get the EAD to be sure, but you know your situation better than anyone here.

Chins Dec 29th 2021 12:53 pm

Re: Tax implications??
 

Originally Posted by Noorah101 (Post 13084068)
As I said, it does not matter where the WORK is. It matters where YOU are. You can't legally work past your first 90 days in the USA unless you have an EAD in hand, even if the company is located outside the USA.



Rene

How does this work in this day an age? If i was an influencer I couldn't stop being paid for photos on my instagram for example. What about being a trader managing your own assets and drawing income. Not being a pain, just interested in what the term work means in this context.
Is it just being employed by a third party ?

Noorah101 Dec 29th 2021 6:16 pm

Re: Tax implications??
 

Originally Posted by Chins (Post 13084532)
How does this work in this day an age? If i was an influencer I couldn't stop being paid for photos on my instagram for example. What about being a trader managing your own assets and drawing income. Not being a pain, just interested in what the term work means in this context.
Is it just being employed by a third party ?

If you are self employed and physically in the USA, you need an EAD.

Rene


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