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ianf77

Tax help on foreign earnings.

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This may be a little confusing. We just want to get things done properly.

So I was working as UK expat in Brazil and Angola for tax year Jan1st-Dec31st 2014

I received my GC on March 16th this year.

my wife works and would file as normal. However I don't have W2 and have been filing in the UK.

Now i am officially classed as Permanent resident I need advice on tax filing, including earnings out of the US.

We want to do this properly however my wife doesn't see why I would have to pay federal taxes on outside earning for the year and I was also not receiving any benefit from the federal government during that period.

Any help or point in the right direction is appreciated.

Thank you

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When did you move to the US?


K1 Visa Process AOS Process

Mar 18 2013: I-129F mailed to CSC Nov 15 2013: I-485 with EAD/AP filed at Chicago Lockbox

Sept 19 2013: Interview - Approved!! Jan 25 2014: EAD/AP Card Received

Oct 6 2013: POE - Chicago O'Hare June 2 2014: Permanent Resident Card Received!

Oct 27 2013: Wedding!

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Seems that last year you were not tax resident, this year you will be from certainly your LPR date.


“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

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Read Publication 519 from the IRS to determine your status in 2014 tax year. Not an easy read. There are days to count up to see if you are a resident alien based on physical presence. Or you and your wife can elect for you to be treated as a resident alien for tax purposes.

In order to file jointly with your spouse, you must report your foreign earned income. That does not mean you are taxed on it. There is a foreign income exclusion you may qualify for using Form 2555. Read the form instructions. Your situation is complicated by residing in US, paying taxes to UK, and working in two other foreign countries.

Your situation is not typical of what has been covered here in the forum. I suggest you read the IRS publication over and over until it makes sense. You have unique situations so need to get it from the source--the IRS.

In general going forward (2015) the US expects you as a greencard holder to pay your taxes to the US and not to the UK because you live in the US. If you work for a British company still, you may need to file forms to get off the UK tax paying and report income to the US. It is part of the tax treaty between US and UK.


England.gifENGLAND ---

K-1 Timeline 4 months, 19 days 03-10-08 VSC to 7-29-08 Interview London

10-05-08 Married

AOS Timeline 5 months, 14 days 10-9-08 to 3-23-09 No interview

Removing Conditions Timeline 5 months, 20 days12-27-10 to 06-10-11 No interview

Citizenship Timeline 3 months, 26 days 12-31-11 Dallas to 4-26-12 Interview Houston

05-16-12 Oath ceremony

The journey from Fiancé to US citizenship:

4 years, 2 months, 6 days

243 pages of forms/documents submitted

No RFEs

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What would define a tax resident??

I entered US on K-1 Feb 2014, married Feb 19.....got EAD and AP on May 12th 2014.

I was going offshore to Angola and Back here during the wait for I-485.

It took a year and 2 months and got GC or LPR on March 14th 2015.

My last tax return was done in UK and the next round will start this month in UK.

The situation is pretty confusing during the transition.

Just want to do things right.

I believe i was in US over the 183 day period of 2014 though.

Any further guidance is appreciated and if anyone could point me in the direction of an immigration tax expert that would really help.

Thankyou all

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There is no short answer I can give not knowing many details and reviewing the Publication 519 again. When I figured this out, I printed out the whole thing and started reading...highlighting what might apply to us and crossing out sections I knew didn't apply. Then I went back to the highlighted until it became clear.

I can tell you my husband arrived in October of a tax year and we elected for him to be a resident alien for tax purposes. if you choose that, then you don't have to follow all the non-resident instructions you are magically a resident alien for the entire year, eve if you did't have the number of days present or the greencard.

Why did we choose resident alien? Because I got a huge tax break by filing jointly with him, even reporting (and then excluding) eight months of UK income. Otherwise I would have had to file Married Filing Separately which would have meant higher taxes. Jointly almost always works out the better deal.

For a professional, I have heard really good things year after year about Pete Newton http://www.britishexpatstax.com


England.gifENGLAND ---

K-1 Timeline 4 months, 19 days 03-10-08 VSC to 7-29-08 Interview London

10-05-08 Married

AOS Timeline 5 months, 14 days 10-9-08 to 3-23-09 No interview

Removing Conditions Timeline 5 months, 20 days12-27-10 to 06-10-11 No interview

Citizenship Timeline 3 months, 26 days 12-31-11 Dallas to 4-26-12 Interview Houston

05-16-12 Oath ceremony

The journey from Fiancé to US citizenship:

4 years, 2 months, 6 days

243 pages of forms/documents submitted

No RFEs

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