UK employment contract, paid in the UK. Spending all my time in the US now

[jmn1012 25]

Hi,

Sorry if this has been asked before, I have looked thru this forum and cannot find an exact match. Guess the answer will be I need a tax attorney but I thought I would try.

Current setup is

 

1. UK Employment Contract, paid in the UK in to a UK bank account

2. I do own a house in the UK

3. Currently paying all my UK PAYE tax and NI contributions via my salary

4. I have spent most of my time in the US over the last two years, however I have spend the odd week or two in the UK, India, APAC etc.

5. Do not have a US SSN

6. On L visa - AOS filed.

 

Reading even more there seems to be a tax equalisation agreement in place between the US and UK. When I use the UK Tax form "Am I a UK tax resident", the answer is yes.

Should I be filing US taxes as zero or just leave as is util employment status changes?

 

Tks

[geowrian 22,336]

You should considered a resident for US tax purposes based upon the substantial presence test. As such, just like a US citizen or green card holder, you must report worldwide income. You may be able to use the Foreign Tax Credit to avoid double taxation.

[aaron2020 11,651]

https://ttlc.intuit.com/community/taxes/discussion/i-arrived-in-usa-with-l1-visa-status-on-aug-29th-2015-my-stay-in-us-is-less-than-183-day-in-the/00/36190#:~:targetText=The L-1 visa (work,only income from U.S. sources.

https://www.stilt.com/blog/2019/09/l1-visa-taxes/

Edited November 25, 2019 by aaron2020

[aaron2020 11,651]

You should seek out a tax professional as soon as possible.  Not filing US taxes may affect your AOS.

[jmn1012 25]

18 minutes ago, aaron2020 said:

You should seek out a tax professional as soon as possible.  Not filing US taxes may affect your AOS.

Thanks very much aaron2020 for the reply. Appreciate it. It seems to be a bit of a minefield

I have not read anywhere how my AOS will be affected, just fines could be set against me if I have not filed.

In my case I think the rule that I still maintain a closer relationship with a foreign country is still try the check list for this is

as below:

 

The location of:

• Your permanent home,
• Your family,
• Your personal belongings, such as cars, furniture, clothing, and jewelry,
• Your current social, political, cultural, or religious affiliations,
• Your business activities (other than those that constitute your tax home),
• The jurisdiction in which you hold a driver's license,
• The jurisdiction in which you vote, and
• Charitable organizations to which you contribute.

As I still hold a UK driving license, have a motorcycle registered in the UK, my children and are registed at the home,m I still pay all the mortgage, cable, utilities at the address I own in the UK and I still vote in the UK. i do not even pay rent in the US officially as I am not on the deeds or rent agreement.

 

100% agree I need to sort this out via a tax attorney asap.

[jmn1012 25]

35 minutes ago, geowrian said:

You should considered a resident for US tax purposes based upon the substantial presence test. As such, just like a US citizen or green card holder, you must report worldwide income. You may be able to use the Foreign Tax Credit to avoid double taxation.

Thanks - There is an agreement in place between the UK and the US in the form of a tax treaty, however, now I have filed for AOS I think the rules have all changed and from filing date, I need to file and use this treaty to stop double taxation.