My fiancé income will continue in the US, can he use the income?

[LouisePaul 0]

Hello everyone!!

I've been looking into this and have had trouble finding answer to my question, although I'm sure after I ask I'll find the answer everywhere lol!

My fiancé is a Sole Trader, he sells applications for phones, because of the nature of his business his income will continue even if he is not working, meaning sales still come in without having to do anything. I don't think this would be considered working but would he be able to use the income from his app sales when he is in the US or is the money/income not allowed to be touched until he is authorized to work? I would have assumed he could because he is not working for it - it's past work still selling.

Sorry if this question is confusing

Thank you for your help!

Louise

[JohnR! 5,495]

If his income is being derived from the UK he can use that money, no problem. As soon as he becomes a resident he will have to include that in his tax returns though.

Until he receives his EAD he cannot be hired in the US or be involved in any working activities that would require his employer to report his income to the Fed & State government. In other words, he cannot accept work in the US or receive any monies in the US related to work performed in the US.

If I understood correctly the money of which you speak is being deposited in the UK and he is drawing from his UK bank account. Is that correct?

Edited July 30, 2012 by Gegel

[Anh map 2,098]

Hello everyone!!

I've been looking into this and have had trouble finding answer to my question, although I'm sure after I ask I'll find the answer everywhere lol!

My fiancé is a Sole Trader, he sells applications for phones, because of the nature of his business his income will continue even if he is not working, meaning sales still come in without having to do anything. I don't think this would be considered working but would he be able to use the income from his app sales when he is in the US or is the money/income not allowed to be touched until he is authorized to work? I would have assumed he could because he is not working for it - it's past work still selling.

Sorry if this question is confusing

Thank you for your help!

Louise

Does the income meet the requirement for your household?

[happiestmanalive 23]

If the money is a job in the UK and deposited into a bank account in the UK he isn't breaking any laws over here.

[LouisePaul 0]

If his income is being derived from the UK he can use that money, no problem. As soon as he becomes a resident he will have to include that in his tax returns though.

Until he receives his EAD he cannot be hired in the US or be involved in any working activities that would require his employer to report his income to the Fed & State government. In other words, he cannot accept work in the US or receive any monies in the US related to work performed in the US.

If I understood correctly the money of which you speak is being deposited in the UK and he is drawing from his UK bank account. Is that correct?

Yes, since he is a sole trader and has no employees all the money from the apps (which are sold world wide on various phone app markets) goes into his UK bank account.

Another question, until he is a resident he will pay his taxes to the UK as normal even though he is living in the US, then once he is a resident he will pay taxes on the app income in the US not the UK? Is that right? I intend to do more research on this

[LouisePaul 0]

Does the income meet the requirement for your household?

It varies monthly depending on the amount of sales but currently the average does, yes

We will be/are trying to self sponsor with his income/savings and we're hoping that because his income will continue while in the US that will help our case.

[JohnR! 5,495]

Yes, since he is a sole trader and has no employees all the money from the apps (which are sold world wide on various phone app markets) goes into his UK bank account.

Another question, until he is a resident he will pay his taxes to the UK as normal even though he is living in the US, then once he is a resident he will pay taxes on the app income in the US not the UK? Is that right? I intend to do more research on this

1/No problem. His UK money is his and he can use it as he sees fit.

2/Once he is living in the US he will have to include any foreign income in his yearly tax returns filed in the US. I am almost sure - i.e. I may be dead wrong - he will also have to file taxes in the UK, for the money is counted as income there too; and he will still be a British citizen. Let's see if someone else had a first hand experience on a similar situation.

[LouisePaul 0]

1/No problem. His UK money is his and he can use it as he sees fit.

2/Once he is living in the US he will have to include any foreign income in his yearly tax returns filed in the US. I am almost sure - i.e. I may be dead wrong - he will also have to file taxes in the UK, for the money is counted as income there too; and he will still be a British citizen. Let's see if someone else had a first hand experience on a similar situation.

Wonderful! Thank you for your quick response lol

Now we just need to figure out how to move a sole trader company to the US so it will be a US company/sole proprietor lol

[JohnR! 5,495]

1343658707[/url]' post='5567625']

Wonderful! Thank you for your quick response lol

Now we just need to figure out how to move a sole trader company to the US so it will be a US company/sole proprietor lol

After going thru a K1 process chances are he will find it a breeze...

Wish him luck and congrats to both off you!

[Nich-Nick 3,353]

My fiancé is a Sole Trader, he sells applications for phones, because of the nature of his business his income will continue even if he is not working, meaning sales still come in without having to do anything.

Think of good ways to prove that income will continue...meaning it's not like full-time employment where he gets a regular salary each month. Bring some documentation to show it comes in month after month over a long period of time so they will be convinced it will continue to come in.

Taxes: He won't be taxed double on the same income. There are tax treaties in place between the US and UK. He'll be taxed by one or the other. If he pays in the UK, then he reports to the IRS, but gets credit for foreign taxes already paid on the money. It'll be complicated at first with the options.

Edited July 30, 2012 by Nich-Nick

[LouisePaul 0]

After going thru a K1 process chances are he will find it a breeze...

Wish him luck and congrats to both off you!

Thank you!

Think of good ways to prove that income will continue...meaning it's not like full-time employment where he gets a regular salary each month. Bring some documentation to show it comes in month after month over a long period of time so they will be convinced it will continue to come in.

Taxes: He won't be taxed double on the same income. There are tax treaties in place between the US and UK. He'll be taxed by one or the other. If he pays in the UK, then he reports to the IRS, but gets credit for foreign taxes already paid on the money. It'll be complicated at first with the options.

He has created account ledgers/spreadsheet for each month, do you think thoese along with some bank statements form a few months back to the appointment would be enough to prove it?

[Anh map 2,098]

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