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-   -   Taxes shouldn't be taxing! US tax advice need for a returnee. (https://britishexpats.com/forum/usa-57/taxes-shouldnt-taxing-us-tax-advice-need-returnee-937218/)

NewJerseyAllStars Feb 20th 2021 9:18 am

Taxes shouldn't be taxing! US tax advice need for a returnee.
 
I am complete beginner when it comes to US taxes so any advice given would be much appreciated (sorry if these questions are obvious). I am a British citizen and returned back to the UK in the summer of 2019 after living in New Jersey for a couple of years. I don't intend to return to the US and don’t have any green card or US citizenship.

While in the US as part of compensation my employer issued me with some RSU (Restricted Stock Units). These vested in 2020. There are some that will vest in 2021 and 2022.

For the tax year 2020 my previous employer has sent me a W2 for these RSU.

Wages(ie. Income from RSU) $12,322 Less deductions for Federal Income Tax $2614, Social Security $758, Medicare $177, NY State Income Tax $1176

Other than $500 of bank interest I have no other income in the US.

So how does it work for taxes in the US? Do I still have to file for State and Federal tax return in the US as a non-resident? Is there a minimum income tax filing threshold?

As my affairs are relatively simple is there a tax filing company does it does cheaply and easily that you can recommend. Has anyone used Sprintax?

I assume my ex-employers just used a default tax rates. I assume I can claim back some of these taxes? Is it possible to do this while based in the UK?

civilservant Feb 20th 2021 7:43 pm

Re: Taxes shouldn't be taxing! US tax advice need for a returnee.
 
You do not have to file a tax return if you earn below $12,400 - but you won't get the tax you paid back if you don't, assuming it was not owed (and that much shouldn't be on that small an income)

tht Feb 20th 2021 8:52 pm

Re: Taxes shouldn't be taxing! US tax advice need for a returnee.
 
I don’t think you will get a refund for the SS Medicare tax. Anything you do pay for federal you should be able to get credit for to offset the UK tax, but not the state tax if you end. Up paying any. If you dont already, I think you will have to do a UK SA return to declare it assuming you are both UK resident and domiciled (it’s unlikely you are not if you are British).

Also remember that the UK and US tax year are different by a little over 3 months, so make sure you declare it in the right UK tax year based on the date you actually received it.


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