First Tax Return

[robburnsefc 0]

Well, I have now been in the USA since my wedding last July. I have been working since October 1st and I got my conditional green card last week!

It is of course tax return time, and the accountant my wife uses is not familiar with the implications of immigration.

Are there any forms or procedures peculiar to me that I need to know?

I have the proceeds of my house sale in my UK bank (not high interest, maybe a bit but not much), I worked from January to July in the UK and paid income tax. I didnt yet fill out the form for the uK Inland Revenue declaring myself gone, so no refund.

I have paid the highest rate of tax on my income.

Will there be any issues with any of this that anyone can think of?

Thanks,

Rob

[Lansbury 19]

I would suggest finding an accountant who does know about foreign earnings and tax. A good accountant even if they are not familiar should be able to look it up.

If you have paid UK tax on your UK income that can be offset against US tax. If you claim the UK tax back you then might be liable to US tax on those earnings. Until our accountant did our tax return this year I thought I understood it all. How he worked it out and how he manged to exempt my UK earnings I just don't have a clue.

You may well need to declare your UK bank account separately from your tax return depending on just have much the balance is.

Edited February 14, 2008 by Lansbury

[Converse34 1]

Well, I have now been in the USA since my wedding last July. I have been working since October 1st and I got my conditional green card last week!

It is of course tax return time, and the accountant my wife uses is not familiar with the implications of immigration.

Are there any forms or procedures peculiar to me that I need to know?

I have the proceeds of my house sale in my UK bank (not high interest, maybe a bit but not much), I worked from January to July in the UK and paid income tax. I didnt yet fill out the form for the uK Inland Revenue declaring myself gone, so no refund.

I have paid the highest rate of tax on my income.

Will there be any issues with any of this that anyone can think of?

Thanks,

Rob

I would only worry about funds you have in the US. If you have the proceeds of a UK house sale and you have in the bank in the US and are earning interest, you need to declare that income. Otherwise, I would not worry about working in the UK from Jan to July.

I moved back to the US in Sept 2005. I only declared on my 05 return the money I eared from Sept to Dec in the US. Also, I never said I had left the UK either, but I ended up getting a refund of about 600 quid.

I filed using www.taxact.com It is free to complete and efile your federal return and about $15 to complete and efile your state (which you don't have to do).

[Lansbury 19]

If you have paid UK tax on your UK income that can be offset against US tax. If you claim the UK tax back you then might be liable to US tax on those earnings.

Ignore that bit I was thinking you had earned the money in the UK while you lived in the US.

For your UK earnings while you lived in the UK you can claim the foreign earned income exemption, which is for 2007 $82400 a year. So in the year you came to the US it would be $84200 divided by 365 multiplied by the number of days you lived in the UK. That is how our account worked ours out when we moved over in 2006.

Edited February 14, 2008 by Lansbury

[Converse34 1]

If you have paid UK tax on your UK income that can be offset against US tax. If you claim the UK tax back you then might be liable to US tax on those earnings.

Ignore that bit I was thinking you had earned the money in the UK while you lived in the US.

For your UK earnings while you lived in the UK you can claim the foreign earned income exemption, which is for 2007 $82400 a year. So in the year you came to the US it would be $84200 divided by 365 multiplied by the number of days you lived in the UK. That is how our account worked ours out when we moved over in 2006.

To me, unless you are earning tons of money a year, you are really just opening the door for potential issues by even declaring your UK income. I see NO possible way it can be traced, and you already paid tax in the UK, why mention it?

[Lansbury 19]

To me, unless you are earning tons of money a year, you are really just opening the door for potential issues by even declaring your UK income. I see NO possible way it can be traced, and you already paid tax in the UK, why mention it?

How about it is a Federal offence not to.

How about if you get pulled for an audit and something in that traces back, for example a money transfer from the UK and they start asking questions about it. If you have ever been audited you would know it is like the Spanish Inquisition and you have to prove what you tell them.

How about if you have paid tax on it in the UK you legally don't have to pay tax on it in the US anyway, so why lie on your tax return.

How about suggesting in these forums people commit criminal offences isn't really a good idea, what you do is your choice.

[no name 1]

To me, unless you are earning tons of money a year, you are really just opening the door for potential issues by even declaring your UK income. I see NO possible way it can be traced, and you already paid tax in the UK, why mention it?

How about it is a Federal offence not to.

How about if you get pulled for an audit and something in that traces back, for example a money transfer from the UK and they start asking questions about it. If you have ever been audited you would know it is like the Spanish Inquisition and you have to prove what you tell them.

How about if you have paid tax on it in the UK you legally don't have to pay tax on it in the US anyway, so why lie on your tax return.

How about suggesting in these forums people commit criminal offences isn't really a good idea, what you do is your choice.

OP- definitely get an accountant to look your UK & US stuff over - it's too complicated & risky not too.

[Converse34 1]

To me, unless you are earning tons of money a year, you are really just opening the door for potential issues by even declaring your UK income. I see NO possible way it can be traced, and you already paid tax in the UK, why mention it?

How about it is a Federal offence not to.

How about if you get pulled for an audit and something in that traces back, for example a money transfer from the UK and they start asking questions about it. If you have ever been audited you would know it is like the Spanish Inquisition and you have to prove what you tell them.

How about if you have paid tax on it in the UK you legally don't have to pay tax on it in the US anyway, so why lie on your tax return.

How about suggesting in these forums people commit criminal offences isn't really a good idea, what you do is your choice.

Oh please. If it is a normal person who isn't the CEO of a fortune 500 company, but just a normal person, are they seriously going to be audited? The IRS doesn't care about small fish, they are too busy investigating large amount of money. Don't be so dramatic.

[ginger1981 0]

I triple agree...find a good tax accountant. Your nearest consulate will likely have some reccomendations of CPA's to go through. I think it's just too dicey right now to do it on your own. Maybe next year you can just turbo tax it yourself :-)

[TracyTN 237]

Unfortunately, you never know who will be audited and who won't.

[no name 1]

Unfortunately, you never know who will be audited and who won't.

Nor is breaking the law something to advertise.

[*julez* 124]

To me, unless you are earning tons of money a year, you are really just opening the door for potential issues by even declaring your UK income. I see NO possible way it can be traced, and you already paid tax in the UK, why mention it?

How about it is a Federal offence not to.

How about if you get pulled for an audit and something in that traces back, for example a money transfer from the UK and they start asking questions about it. If you have ever been audited you would know it is like the Spanish Inquisition and you have to prove what you tell them.

How about if you have paid tax on it in the UK you legally don't have to pay tax on it in the US anyway, so why lie on your tax return.

How about suggesting in these forums people commit criminal offences isn't really a good idea, what you do is your choice.

Oh please. If it is a normal person who isn't the CEO of a fortune 500 company, but just a normal person, are they seriously going to be audited? The IRS doesn't care about small fish, they are too busy investigating large amount of money. Don't be so dramatic.

Even "small fish" get audited. A woman I work with, who is a junior staffer, was audited a few years ago. I can assure you that she is very much of middle class wealth. She said being audited was a nightmare. I personally wouldn't and won't take chances. Messing with the IRS is just something that isn't worth it.

Edited February 14, 2008 by julezabelle

[Lansbury 19]

Oh please. If it is a normal person who isn't the CEO of a fortune 500 company, but just a normal person, are they seriously going to be audited? The IRS doesn't care about small fish, they are too busy investigating large amount of money. Don't be so dramatic.

If you are happy to break the law do so, but why assume others would follow your lower standards.

The chance of the normal worker getting audited in 2007 was 1%. My step-son, just an ordinary working guy, got audited a few years back and he had followed your method, they won't audit the small guy. He sure as hell wished when they finished he had declared the income from his side jobs which he thought they would never find. Back tax plus penalties can be a killer, he is still paying back the money I loaned him to get out of the mess.

[Converse34 1]

Oh please. If it is a normal person who isn't the CEO of a fortune 500 company, but just a normal person, are they seriously going to be audited? The IRS doesn't care about small fish, they are too busy investigating large amount of money. Don't be so dramatic.

If you are happy to break the law do so, but why assume others would follow your lower standards.

The chance of the normal worker getting audited in 2007 was 1%. My step-son, just an ordinary working guy, got audited a few years back and he had followed your method, they won't audit the small guy. He sure as hell wished when they finished he had declared the income from his side jobs which he thought they would never find. Back tax plus penalties can be a killer, he is still paying back the money I loaned him to get out of the mess.

I'm not assuming anything. I'm just saying what I did and what worked for me. That is allowed, right? I mean people post topics on this site because they are looking for answers, not that they need to spend money on outside services. So we all offer our opinion and the OP can decide from there.

Sometimes everyone on this site recommends being 100% honest with everything and sometimes it back fires and causes more trouble then it is worth. Look at KJC's post here. Or other posts where people have admitted to using drugs and their visa has automatically been denied. Sometimes omission saves a lot of unnecessary hassle.

[no name 1]

Oh please. If it is a normal person who isn't the CEO of a fortune 500 company, but just a normal person, are they seriously going to be audited? The IRS doesn't care about small fish, they are too busy investigating large amount of money. Don't be so dramatic.

If you are happy to break the law do so, but why assume others would follow your lower standards.

The chance of the normal worker getting audited in 2007 was 1%. My step-son, just an ordinary working guy, got audited a few years back and he had followed your method, they won't audit the small guy. He sure as hell wished when they finished he had declared the income from his side jobs which he thought they would never find. Back tax plus penalties can be a killer, he is still paying back the money I loaned him to get out of the mess.

I'm not assuming anything. I'm just saying what I did and what worked for me. That is allowed, right? I mean people post topics on this site because they are looking for answers, not that they need to spend money on outside services. So we all offer our opinion and the OP can decide from there.

Sometimes everyone on this site recommends being 100% honest with everything and sometimes it back fires and causes more trouble then it is worth. Look at KJC's post here. Or other posts where people have admitted to using drugs and their visa has automatically been denied. Sometimes omission saves a lot of unnecessary hassle.

Not declaring all your income on your tax return isn't an 'omission' - it's fraud.

You broke the law, so no, it's not OK to advocate it to others, on this board anyhow.

Edited February 15, 2008 by illumine