Taxation - Moving to the Usa
 

Hi Folks.

Looks like we are off the the USA on a L1-B Visa. But have a question on the taxation.

As i will be working for a US company my wife under an L2 visa will try to get work authorisation to work next year. The question is to what status is it best to file our taxes i.e Married filing jointly or Maried filing sparatley.



Regards

Keith NP

Re: Taxation - Moving to the Usa
 

You don't need to decide until you file the tax return (following April), so you can fill out the return both ways at that time and see which works best. Chances are that it'll be married filing jointly.

Welcome to the US, BTW. :)

Re: Taxation - Moving to the Usa
 

Which tax return are you refering to? British or American? You will have to file both British and US tax returns (what fun!)...


NC Penguin

Re: Taxation - Moving to the Usa
 

Buy yourself a copy of Dummies/Idiots Guide when you get here to find the differences and get you thinking in "deductions" mode. If you're not using a CPA, use a tax program (e.g. TurboTax). It'll run it both ways for you and tell you which is the best way to file for your circumstances.

Re: Taxation - Moving to the Usa
 

Am refering to the US tax returns. HAve read that as both of us are nonresident aliens we cannot file as married filing jointly.

Re: Taxation - Moving to the Usa
 

Look on the IRS web site (www.irs.gov) for publication 519 (tax guide for aliens). I'm not 100% sure, but I think that you'll find that being here on the L visa (see 'substantial presence test'*) will make you a resident for tax purposes (not resident for immigration purposes). If so, you file taxes in the same way as a US citizen.

* you probably have to be here for at least six months during the calendar year to qualify as resident for tax

Re: Taxation - Moving to the Usa
 

My wife and i are here on L visas and file jointly (done by Deloitte who seem to know what they are doing)

Re: Taxation - Moving to the Usa
 

[QUOTE=AdobePinon]Look on the IRS web site (www.irs.gov) for publication 519 (tax guide for aliens). I'm not 100% sure, but I think that you'll find that being here on the L visa (see 'substantial presence test'*) will make you a resident for tax purposes (not resident for immigration purposes). If so, you file taxes in the same way as a US citizen.

* you probably have to be here for at least six months during the calendar year to qualify as resident for tax[/QUOTE]


Not sure about L visas but we filed as resident for tax within 2 months of arrival on GC's.

Re: Taxation - Moving to the Usa
 

That's because you were resident for immigration which automatically makes you resident for tax. But like I said, I'm not too familiar with the L visa - he needs to do some research.

Re: Taxation - Moving to the Usa
 

I'm here on an L1 visa for a year and I just pay uk tax however I think there is a time limit.