arcticfox

Hello community,

Does anyone know the US tax implications of moving from UK to US in the middle of a year?

I hope to obtain a Green Card and move on 10 August. I will not meet the Substancial Presence Test.

My understanding is that I will be taxable to the US from the day I arrive in the US following receipt of my Green Card (Residency Starting Date).

I wouldn’t want any foreign income earned before the move to be taxable in the US.

robtuck

Using your last sentence, then you'd file as a Non Resident Alien, which does reduce the options for reducing tax in the USA but ignores your time outside the USA before moving.

The alternative is to declare Dual Status but that does requires reporting foreign income and tax etc. as I remember from my first one.

If you take employment, you'll submit a W4 which outlines what witholdings are taken from your pay.

Rete

My husband moved to the US in August, 1998 and he met the substantial presence test and he didn't have a green card.

He filed as normally in Canada for 1998 and I used him as a resident for tax purposes on our US federal and state forms. He did not work in the US for the year 1998. His Canadian income was added to our US forms and we had a tax credit for the monies he paid to Canada Revenue.

robtuck

Actually, doesn't GC remove the need for the substantial presence test anyway? meaning straight to Resident Alien.

tom169

Yes. Well, being a permanent resident does. The GC is just evidence of it. You can still be a dual status resident for that tax year though.