Cainess

I understand that I 'may' need to file a tax return for 2012 with the IRS before 15th April.... but do I actually need to??

I moved to the U.S. on 26th November, and did not receive any salary from my new employers until January 2013, even though I technically started with them on 3rd December. I therefore do not have a 2012 W-2 form to file with the IRS...

Do I need to declare 'no US income' during 2012 to the IRS??

RICH

NEED? Probably not if you have uncomplicated finances. But yes if you are a PR or US citizen.

If you happen to be married to a USC, it will likely be in your favour to file married filing jointly.

Either way, filing a tax return, and owing taxes are not the same thing. I suggest go on Turbo tax, fill in your info, it will likely tell you you have nothing to declare, and charge you $30 for the privilege.

And yes, April 15th is the deadline.

JAJ

If U.S. resident it's always best to file as that then starts the statute of limitations ticking. There may well be foreign investment or other income to declare.


But then doesn't he have to declare himself U.S. resident for the whole year and include foreign income, foreign tax credits, etc.?

If he's married, then married/separate may be the best option.


Deadline can be extended by filing form 4868. Don't forget state tax (unless in a state without an income tax).

Also don't forget any information reporting that may be due, eg FBAR on bank accounts.

chuckles67

I moved in early December 2009.

Federal and State taxes were applied for my USA earnings for Dec 2009.

Federal did not tax me on salary income received that year before I arrived in USA.

Here was the kicker: California State taxed my prior salary income pro-rata. Meaning they taxed me on 1/12 of my prior salary income earned before arriving in the USA.

Now I live here I can see California is broke - potholes all over the Bay area, huge pension obligations, state government infrastructure and associated costs. I resent them for dipping in to my piggy bank

jeffreyhy

The statute of limitations on what?

Regards, JEff

Cainess

Sorry but there ain't no way I'm filing a tax return for 2012 if it gives the IRS the opportunity to tax me on my UK earnings for the year- I've already been taxed on them by Cameron's mob!

I didn't earn any money in the US last year, so I think I'll opt out, ta.

Steve_

No you don't need to, unless you have income from some other source other than employment that puts you over the filing limit.

Are you an LPR though? I don't think you're exempt from the FBAR requirement if you are, read the instructions: http://www.irs.gov/pub/irs-pdf/f90221.pdf

Steve_

Doubtful, he wasn't resident until November 26th, so he would have to file dual-status and if you do that you cannot file jointly so there is no advantage.

He could also choose to be resident for the entire tax year, but then his UK earnings would be subject to US tax and he would have to file for a foreign tax credit.

The question is whether he is an LPR because that has some bearing on it.

kansanbrit

I would not !!

JAJ

Statute of limitations for the IRS to audit your tax return. Normally it's 3 years.

JAJ

If you earned any income, anywhere, since you arrived in the United States then it's taxable in the United States. You have to file if that's the case.

As to the rest, it all depends if you are citizen/LPR or non-immigrant, and whether or not you are married.

Cainess

I am married (to an American citizen) and I am now classed as a permanent resident (ie. An 'alien' with a Green Card!!). I did NOT earn a cent in the US last year; first pay cheque was in January 2013.

So where do I stand? Like I said, I'm not going to file if that would simply give the IRS a means to tax me on my UK earnings from last year.

JAJ

But did you earn money outside the United States? Bank interest, dividends, etc? These are also U.S. taxable, if you pay foreign taxes you take a credit.

Second - you're a permanent resident, so you ought to file regardless. It will be looked at when you apply for citizenship, etc.

Third - and you should validate all this with a CPA, but as far as I am aware your options are:

1. File jointly with your spouse. You would have to be considered resident for the whole year, and include all your U.K. income - however, you could take a credit for U.K. tax paid; or

2. File married/separate. Both you and your spouse file married/separate, and your return is dual-status and only includes (worldwide) income after you arrived in the U.S.

Get a CPA to run the numbers both ways. The first option may give you a lower combined tax bill. However, you've left it very late to find a competent tax CPA so you may want to consider filing a request to the IRS on form 4868 to extend the deadline to file your tax return.

Cainess

Thanks, advice appreciated! The thing is, no-one here (in a work sense) advises any newly-arrived foreigner about the tax system- you have to try to figure it out for yourself!!

DavidLemon

I agree. My employer was less than helpful in this regards, so ended up spending a few shillings talking to a tax adviser from HR Block. Learnt a lot since and this year filed both state and fed fee free.