BritishGuy36

Hypothetical (for now) scenario:

Immigrate to the US. Work remotely on IT networks in the UK via the internet. Get paid by UK individual (who has his own IT support business). Probably paid either via PayPal (US PayPal account) or BACS into UK bank account, then transfer cash from there.

Who taxes me? And what to file for US taxes (I mean, do I file as US income, as I am working while in the US, or file as foreign earned income, as the salary is coming from the UK)?

Ta.

Bill_S

It will be complicated. If you are a resident of the US then you must file a tax return and report your worldwide income. American employers normally withhold taxes from each paycheck and remit the money to the IRS. If your British employer is not doing this, you will have to make quarterly estimated tax payments. Because your income will be from a foreign source, application of tax credits will probably be different. There is a tax treaty between the US and the UK which could come into play as well. I have no idea what the requirements will be on the UK side. I highly recommend that you hire a tax specialist with experience in international employment to help you. Do this soon after your relocation, if it happens. You don't want to leave it until the last minute.

Here's a link to IRS Publication 17 to get you started: LINK

penguinsix

In your hypothetical, what is your status in the US? Green card? USC, h1-b? Illegally working on a tourist visa?

It's also a sticky wicket for the employer. Technically you are working here and they are responsible for all sorts of taxes (social security, unemployment, etc). Them not paying can put you on the hook for some of those things which would suck I think as 'self-employed'.

Would recommend some professional advice from a tax attorney who deals with cross border tax issues.

BritishGuy36

I will have a 10 year green card.

I should have been more specific about the working relationship.

I would be self employed with my own business doing IT contracting, and the other individual would pay for my services on an ad-hoc daily/half daily basis.

Does that help?

Ray

This site may have some info
http://www.americantaxhelp.com/faq.html

Bill_S

Although your question is simple, the answers are going to be beyond the scope of a message board. The starting point for self-employment is here. I have no idea how taxation works in the UK, but in the US the onus is largely on the individual taxpayer to get it right. This is especially true for self-employment. I strongly suggest a professional tax accountant.

BritishGuy36

Ok thanks all.

I guess I am going to have to get into all this once we move.

I have enough to sort out to be going on with.