UK Benefits and Tax whilst in the USA
Jul 8th 2018, 4:22 pm
#1
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UK Benefits and Tax whilst in the USA
Hello,
I'm a teacher, and going to be temporarily living in the US for just under 12 months on a J1 Teachers visa. I have children and wife on J2s. I'm just trying to wrap things up here in the UK and wondering about my UK benefits. I'm aware that I need to contact the Tax Office etc. notifying them when we leave. Does anybody know if they'll consider allowing child benefit to run for the kids seen as it's only a temporary relocation? I've had mixed responses.
Also, for my UK earnings in this task year April 2018 until when I leave my current teaching job at the end of August 2018. I will have paid too much tax for the year. When and how will I get that back?
Thanks in advance, I'm sure I'll have many more moving questions...
I'm a teacher, and going to be temporarily living in the US for just under 12 months on a J1 Teachers visa. I have children and wife on J2s. I'm just trying to wrap things up here in the UK and wondering about my UK benefits. I'm aware that I need to contact the Tax Office etc. notifying them when we leave. Does anybody know if they'll consider allowing child benefit to run for the kids seen as it's only a temporary relocation? I've had mixed responses.
Also, for my UK earnings in this task year April 2018 until when I leave my current teaching job at the end of August 2018. I will have paid too much tax for the year. When and how will I get that back?
Thanks in advance, I'm sure I'll have many more moving questions...
Jul 8th 2018, 4:26 pm
#2
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Re: UK Benefits and Tax whilst in the USA
Hi, welcome to BE.
Nope. Only certain relocations count, and a year's working in the US doesn't seem to come under any of them. Details here - https://www.gov.uk/child-benefit-abroad
For your tax, you'll fill in a P85 when you leave the UK and then get a refund once the number crunchers have sorted out what they owe you. https://www.gov.uk/government/public...-tax-right-p85
HTH, best of luck with the move.
For your tax, you'll fill in a P85 when you leave the UK and then get a refund once the number crunchers have sorted out what they owe you. https://www.gov.uk/government/public...-tax-right-p85
HTH, best of luck with the move.
Jul 9th 2018, 8:50 am
#3
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Re: UK Benefits and Tax whilst in the USA
Can I ask a potentially silly question, but when I'm in the USA is there any child benefit available for kids? Are do you have to be a permanent resident etc.? I know that different countries have different rules etc.
Jul 9th 2018, 9:09 am
#4
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Re: UK Benefits and Tax whilst in the USA
The US income will be fully UK taxable because you will not be away long enough to break residence for UK tax purposes. You'll need to register for self-assessment and disclose the income to HMRC.
Jul 9th 2018, 10:06 am
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Re: UK Benefits and Tax whilst in the USA
How long do you have to be away?
Also seems unfair that I have to pay USA tax and UK tax on my income??
Also seems unfair that I have to pay USA tax and UK tax on my income??
Jul 9th 2018, 10:06 am
#6
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Re: UK Benefits and Tax whilst in the USA
No child benefit in the US that I'm aware of OP, even for citizens/PR's, they just don't have the benefits system we have here at all. But those in the US will be able to advise you when they're along later. If you feel you need the extra to top up your income it might be worth starting a new thread with your proposed salary/benefits (including, vitally, the healthcare package you'll have) so that those in the same area can advise you on whether or not it's a liveable wage for a family.
Good luck.
Jul 9th 2018, 10:15 am
#7
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Jul 9th 2018, 10:17 am
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Re: UK Benefits and Tax whilst in the USA
How long do you have to be away?
Also seems unfair that I have to pay USA tax and UK tax on my income??
Also, we may stay longer than the 12 months, it depends if the school want me and we feel comfortable. In an ideal world I'd like to say that we'd stay in the USA indefinitely, or until the 5 year of the J1 has been maxed out. We're not under the 2 year return system on our visa. But our initial visa is 1 year. Because that's the contract with the school.
*Sorry Chris saw your reply above.
Also seems unfair that I have to pay USA tax and UK tax on my income??
Also, we may stay longer than the 12 months, it depends if the school want me and we feel comfortable. In an ideal world I'd like to say that we'd stay in the USA indefinitely, or until the 5 year of the J1 has been maxed out. We're not under the 2 year return system on our visa. But our initial visa is 1 year. Because that's the contract with the school.
*Sorry Chris saw your reply above.
Last edited by IntrepidBrit; Jul 9th 2018 at 10:18 am. Reason: Answered question above...
Jul 10th 2018, 4:00 pm
#9
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Re: UK Benefits and Tax whilst in the USA
How long do you have to be away?
Also seems unfair that I have to pay USA tax and UK tax on my income??
Also, we may stay longer than the 12 months, it depends if the school want me and we feel comfortable. In an ideal world I'd like to say that we'd stay in the USA indefinitely, or until the 5 year of the J1 has been maxed out. We're not under the 2 year return system on our visa. But our initial visa is 1 year. Because that's the contract with the school.
*Sorry Chris saw your reply above.
Also seems unfair that I have to pay USA tax and UK tax on my income??
Also, we may stay longer than the 12 months, it depends if the school want me and we feel comfortable. In an ideal world I'd like to say that we'd stay in the USA indefinitely, or until the 5 year of the J1 has been maxed out. We're not under the 2 year return system on our visa. But our initial visa is 1 year. Because that's the contract with the school.
*Sorry Chris saw your reply above.
Having children as dependents should reduce your US taxes.
Jul 10th 2018, 4:05 pm
#10
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Jul 10th 2018, 5:04 pm
#11
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Re: UK Benefits and Tax whilst in the USA
https://www.forbes.com/sites/kellyph.../#3b4b8723133d
Jul 10th 2018, 8:27 pm
#12
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Re: UK Benefits and Tax whilst in the USA
Not sure that an NRA would get either EIC or refundable child tax credits.
Jul 10th 2018, 9:52 pm
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Re: UK Benefits and Tax whilst in the USA
Jul 10th 2018, 11:01 pm
#14
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Re: UK Benefits and Tax whilst in the USA
The OP is not becoming a permanent resident, i.e. obtaining a green card. They will be resident only for tax purposes in the US once they have passed the 6 month mark and will have to a US tax return for all worldwide income earned during the US tax year which is January 1 through December 31.
Jul 11th 2018, 7:50 am
#15
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Re: UK Benefits and Tax whilst in the USA
The OP is not becoming a permanent resident, i.e. obtaining a green card. They will be resident only for tax purposes in the US once they have passed the 6 month mark and will have to a US tax return for all worldwide income earned during the US tax year which is January 1 through December 31.