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Tax Returns US/UK etc.

Tax Returns US/UK etc.

Old Jan 17th 2011, 8:26 pm
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Default Tax Returns US/UK etc.

Hi all, am after some information regarding tax returns if anyone can please help?

First off our situation:

We married in the US in Sept and I returned back here to the Isle of Man. We filed our I-130 in late Dec and have received notification that that's ongoing. I asked my accountant a few months ago about declaring my wife on my form here when he fills it in? He got back to me an told me that it's fine to do that but I/she wouldn't be liable for any earnings she has over there (as I thought).

However my wife is now receiving many differing reports about what happens if she adds me on her return this month. She's been told that if she declares she's married we're going to have to convert my earnings this past year into dollars (obviously all earned here on the IoM) and we're liable for tax on that. That can't be right can it? How can I be liable to the US Govt for earnings here? Hopefully I'll be moved there by Sept(ish) and they can have their tax dollars from then on but I can't see it right that I'd be taxed twice for my earnings on this side of the Atlantic?

Thanks in advance for any help with this.
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Old Jan 17th 2011, 9:43 pm
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Default Re: Tax Returns US/UK etc.

Your wife has missed out one piece of information.

First, she MUST file as 'married' for 2010 because she was married on 12/31/10.
There are two choices after that; married filing separately or married filing jointly.
It may make more sense to file separately this year; you are not obliged to report your income to the IRS.. YET. Do note that as a Permanent Resident or US citizen, you have to *report* your worldwide income to the IRS. There are tax treaties that will keep you from being double taxed on your first X$ of income.

When you move to the US and become a Permanent Resident (you say in Septemberish) you should note that your income for the entire calendar year is reportable. Not just from Sept forward.
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Old Jan 17th 2011, 10:02 pm
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Default Re: Tax Returns US/UK etc.

That's great thanks. Kind of what I've been trying to explain to her. I understand about me being taxable for the calendar year too.

She's since got back to me and has had H & R Block explain to her about the married but filing separately issue (again pretty much what my accountant explained to me but she does panic a little at times). She's much happier now.

BE comes through once again. Cheers.
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Old Jan 17th 2011, 11:29 pm
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Default Re: Tax Returns US/UK etc.

If you really love her, you will learn to do the tax returns.
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Old Jan 17th 2011, 11:54 pm
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Default Re: Tax Returns US/UK etc.

Well I'll certainly be giving it a go but seeing as I've had an accountant do mine for about the last 9 years I'm slightly out of the loop.
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Old Jan 19th 2011, 10:15 am
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Default Re: Tax Returns US/UK etc.

Moghrey mie, Kneeno! I lived on the IOM for 12 years from 1997 to 2009, in Douglas
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Old Jan 19th 2011, 10:43 am
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Default Re: Tax Returns US/UK etc.

Moghrey mie indeed. Kys t’ou?

Am in Douglas myself (not for too much longer hopefully) but grew up in St. Johns.
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Old Jan 19th 2011, 11:01 am
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Default Re: Tax Returns US/UK etc.

I lived just off Buck's Rd for a few years, then the last 3 up near Pully. Worked (and still do, remotely) for a small software company based off Athol Street.

My visa petition went in at the start of December, so the aim is to move over to Utah at the end of August for a September wedding

Cair Vie!
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