Working remotely (UK) with Green Card

[Robk10 0]

Thanks in advance if anyone can help...

 

I am a UK citizen with a US green card, we plan to move to the US in the early part of next year. I work remotely for my current employer, a UK based company, and planned to work for the first 9 to 12 months from the US; still remotely for my UK employer. I obviously already pay taxes in the UK as PAYE. For that 9-12 months I’m in the US on my green card will I have to pay US taxes in anyway? Obviously I’ll be filing tax returns anyway but just really don’t know how impactful it is or from a US perspective, or they just don’t care as I’m working remotely from the U.K. 

 

Any help is appreciated....

 

Thanks 

[igoyougoduke 1,604]

U.S. resident aliens are generally taxed in the same way as U.S. citizens. This means that their worldwide income is subject to U.S. tax and must be reported on their U.S. tax return. 

[Boiler 43,392]

Best to discuss this with your CPA, may be more logical to be a contractor than an Employee,

[JeanneAdil 6,190]

The United States – UK Tax Treaty covers double taxation with regards to income tax and capital gains tax. ... If they have income arising in the US, Americans in the UK can claim British tax credits against US income taxes paid to the IRS when they file their UK tax return.Jan 28, 2019

and visa versa

 

Considering the high tax rate paid in UK on earned income, added employer contributions may still leave you tax free in the U.S. Your benefit: the added amount will be considered previously taxed - which will reduce the taxable portion of pension payments in the future.

https://www.taxesforexpats.com/uk/us-tax-preparation-in-uk.html#faq-101

 

for your 1st year here,  i would go to CPA for tax filing for the US

not one of the many tax services that do not know about this but a real CPA

Edited October 11, 2020 by JeanneAdil

[US-UK 32]

Definitely talk to whoever has been preparing your US taxes while you’ve had a green card, as presumably they’ve been applying the treaty to your U.K. sourced income and are knowledgeable enough to make the switch over to US sourced income So you can (or get someone to) apply the credit against your HMRC Self-Assessment if you are required to do one.

[Robk10 0]

Thanks everyone for your responses; very much appreciated