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tax return with UK income&tax paid

tax return with UK income&tax paid

Old Jan 30th 2012, 11:06 pm
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Default tax return with UK income&tax paid

Hi

I've tried asking these questions to H&R block but the guy I spoke to didn't sound too sure of his answer. I would appreciate a second opinion!

I was I UK resident at the start of the US tax year, moving to the US on a Fiance visa in May 2011. I was paid 4 months worth of salary in the UK. For Jan, Feb and March, I paid tax as it was within the 'old' UK tax year. For April, I claimed the tax back for the 'current'. H&R block have advised I need to declare this income, even though I paid tax, on my US tax return. Is this correct?

My second question - I started working in the US in December and have one pay check. My husband (US citizen) was planning on claiming me as a dependent as I earned under the $3,700 limit. Is my US income the only income that decides if I am a dependent or not or does my UK income count in this also?

p.s. my UK income between Jan and April would put me over the $3,700.

Opinion's appreciated!

Thank you
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Old Jan 30th 2012, 11:30 pm
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Default Re: tax return with UK income&tax paid

You have to declare you UK income but you can use foreign income taxes paid to offset any US taxes owed.

He shouldn't claim you as a dependent but should file as "married filing jointly" as well as a "spousal exemption" which is a much bigger tax break. If you income was low and even if you have to pay taxes on your foreign income, married filing jointly is generally a much better tax break than married filing separately.

Use the following calculator to get an approximate estimate of the differences.

http://www.dinkytown.net/java/Tax1040.html

Last edited by Michael; Jan 30th 2012 at 11:35 pm.
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Old Jan 31st 2012, 4:42 am
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Default Re: tax return with UK income&tax paid

H & R Block are useless. If you do need someone who is well versed on both sides of the pond contact Pete Newton. www.britishexpatstax.com
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Old Jan 31st 2012, 5:30 am
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Default Re: tax return with UK income&tax paid

Originally Posted by penguinbar View Post
H & R Block are useless. If you do need someone who is well versed on both sides of the pond contact Pete Newton. www.britishexpatstax.com
I agree with your assessment of H&R Block. Used them once and never did again. That was years ago
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Old Jan 31st 2012, 2:27 pm
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Default Re: tax return with UK income&tax paid

I bartend and my tips from work were declared on my w2 in the social security tips box which means that they were already taxed in my paycheck. When they did my return they said I owed thousands of dollars. They had my tips as allocated tips as if I didn't declare and pay tax on them. Most of the people there are tax preparers and just took a course on taxes not accountants.
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Old Feb 1st 2012, 1:10 am
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Default Re: tax return with UK income&tax paid

Originally Posted by penguinbar View Post
H & R Block are useless. If you do need someone who is well versed on both sides of the pond contact Pete Newton. www.britishexpatstax.com
Thanks. I've contacted Pete.
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Old Feb 1st 2012, 2:48 am
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Default Re: tax return with UK income&tax paid

Originally Posted by Fingers crossed View Post
Thanks. I've contacted Pete.
You're welcome!
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