Am I supposed to pay taxes?
Posted on January 7, 2010 by pacificyorkshirebird
Dreamer had a great question on her comment to Yankeebean’s post about the how to go about bringing up the fiance visa question. She writes:
Is it true that if you are an american citizen working in the UK you pay both UK and US taxes? and vice versa?
I went for three years kinda wondering that question and hoping it would just go away like when Hypercolor t-shirts just disappeared after 1992.
Of course, the minute I wanted to import my British guy through US immigration, my history as a taxpayer became very important. With my application, I had to submit tax returns from the last three years, two of which I had to go back and file late as I hadn’t been filing at all since I moved to the UK. And as it turned out, I needed to be earning over $80,000 a year (or something) in order to have to pay Uncle Sam, so I was off the hook. But I needed help from a smartypants tax accountant. Never in gazillion years would I have known how to file my returns without their help.
Keep in mind that I was earning $0 income in the United States at that point, nor was I employed by a US company and transferred to the UK. And in the past, the hardest part about doing my taxes was subtracting the standard deduction and asking my parents whether I was still being claimed as a dependent.
Oh yeah, and I’m no tax expert so make sure you look into your own situation before you decide what to do. Here’s a link you might find helpful to the IRS FAQ’s.
To make it even more confusion, it turns out I may not have had to go through filing past returns anyways. Because the income part of my visa application was rejected because the income I claimed wasn’t earned in the US!
Anyways, compare that to the UK system where they actually PAID me tax back after leaving the UK because I happened to leave before I paid in the minimum amount for the tax year. HM Revenue & Customs has some helpful information on their website too. Check out the sections on Information on Double Taxation and Social Security Treaties and International Aspects of Personal Tax.
Readers – tell us your tax stories!