Jscl

Yes, because you arrived late in a year this is definitely a case where you may have options depending on your individual circumstances.

Often for people who spend a short time in the US towards the end of the year (at the start of a visa) the best option is a Dual Status return. This is where you opt (and you have to make a statement saying that's what you're doing) to be taxed as a non-resident for the period you were not in the country (i.e. taxed only on income from US sources (often $0) and taxed as a resident for the period you were in the country (i.e. taxed on worldwide income).

http://www.irs.gov/Individuals/Inter...-Status-Aliens

There are other options, but it's quite a complicated subject if you're new to it, and if you can afford to pay someone who is familiar with the subject that would definitely be wise, there are just so many new things to consider.

Next year though it should be pretty easy!

(by the way, if your income is less that $3800 for the time you were in the US you probably won't have to file at all, so first step, check that!)

Parisangel

Good advice, thanks, we will look into it.

kodokan

Read this: http://www.irs.gov/pub/irs-pdf/p519.pdf. It's the IRS guidelines for Aliens filing tax returns (this is for the 2011 return, 2012 isn't out yet, but I imagine the rules for first year arrivals will be roughly the same)

Since you arrived last October (we arrived Oct 2011, so went through the same loops), you probably didn't meet Substantial Presence, unless you did a lot of pre-move trips over here in 2011, 2010 and 2009 (there's a formula of pro-rata'd days in the guide). You would therefore be able to file as non-resident, or could choose to do a dual-status return, or even (I think...) elect to be taxed as resident for the full year instead.

First year is complicated. We had tax providers who worked it out for us all 3 ways; for us, it made sense to file non-resident on just the income earned in the US since we moved; we came from Switzerland and really didn't want the US retrospectively taxing a high Swiss salary!

It worked out rather well, as the amount hubby had earned in the US for the end of the year looked like a very small annual salary, so the marginal rate of tax was ridiculously low and we got a rebate (it had been deducted at source at the 'right' rate for someone earning the salary annually). The rebate was impressively quick - we sent in the return, and got the check within 10 days!

If you've got your final December payslip, or when you get your W2 (P60) you could plug the figures given into here and see if you had too much/ not enough tax deducted at source. That'd be useful to know.

http://turbotax.intuit.com/tax-tools...ors/taxcaster/

captainsensible

I believe this is only the case if your spouse is a USC and also resident.

MsElui

we were quotes about 500 bucks for a cpa to do ours, but that was also dealing with uk house rental and mortgage, as well as us mortgage, husband paying national insurance and not social security etc. we got a nice large refund though so was worth it.

jeffreyhy

It's going to depend on how complicated the return is (MsElui gives a good example), and also where you live.

Regards, JEff

Cook_County

For the year of arrival there are typically four to six posssible elections that you could make that might reduce your tax. A good dually qualified US/UK tax adviser will be familiar with these.