willocraig

Hi EVERYONE!

I moved to the US on an L1-B visa on the 14th June 2012. I've been researching information on doing my taxes and just wanted to double check the information.

I went on the IRS website and took a series of questions and as I've been in the country over 183 days, I'm considered to have 'dual status' for 2012.

Would I be able to go to H&R Block or a similar company and get them to do the taxes?

Any help would be greatly appreciated!

davidsizer

Hi, firstly welcome to the USA

I came over on a L1B also. The dual tax is bit of a headache and I would highly recommend you use a special international tax adviser. There are huge differences between UK & US taxes, especially as you straddle each accounting years. Which means the US will tax you, and the UK will want a slice to. But due to the double taxation rule agreement between USA & UK, you can claim back the UK taxes. There are lots of other complexities such as where you are been paid, what benefits your company provided as part of the relo etc. The US IRS wants to know every aspect of your financial commitments - even back in the UK. All of that has to be declared.

In my opinion H&R wouldnt have the expertise. Nor would any home software. Looked at them all and none jumped out.

As part of my relocation package my company paid for 2 years of professional tax provision (PwC). Even with those experts my tax return preparation took them weeks.
Perhaps you could ask your company for assistance? After all they did relocate you for work. If this doesnt work out, some UK friends use an Accountant based in the South (location doesnt seem to matter as they mostly work over email). Let me know and i can pass on their details.

Good luck,
David

willocraig

Thanks for the information David! I really appreciate your help. I'm not sure whether my company will help me with this, but I'm certainly going to find out.

If not, I'll contact the accountant you mentioned and go from there.
Thanks again,
Philip

davidsizer

No problem. really they should offer some sort of tax assistance, at least the first year. Otherwise, give me a shout and i'll get the accountant details.

thanks

Bob

One of the big things to negotiate in the relocation package, also for the final year if repatriating.

Once you're over here, it's a big expense for them not to be interested in though.

There are quite a lot of threads on the subject though, so might find some answers in those.

captainsensible

Which questions did you answer on the IRS website? I found the interactive assistant but it doesn't seem to have 2012 as an option.

jeffreyhy

I would not go the H&R Block or similar 'mass production' tax service - they may be good at 'routine' tax situations but can be weak with unusual situations such as yours.

I would interview several tax accountants or tax attornies to be sure they are familiar with your situation and then select one of them. The fee will be more expensive, but your tax return is far more likely to be done right and they may save you more money than the extra fee costs.

Regards, JEff

Bob

Indeed, because H&R sell themselves as tax pre-parers and not accountants, so there's very minimal tax background required or training needed to work for them.

That isn't to say that they are all rubbish, but chances are, certainly unless you can get someone senior, the likelihood is you'll not get great quality of care.

willocraig

Excellent advise guys! I really appreciate you helping me out with this.

I've started looking into Tax Accountants in my local area and i'll make sure they are the right people to help me with my 'interresting' situation : )

captainsensible, I am looking for the link I used. I'll post it ASAP

Cook_County

Golden Rules for choosing a tax preparer:

1. QUALIFICATIONS
Do not be shy! Ask if they are members of professional bodies in both the US and UK and if so, which ones and for how long.

2. COST
Ask what they charge!

3. COMFORT
Pick one who is dual US/UK qualified and who you feel you can get on with. This is personal choice so call a few firms before deciding...