2017 tax year
You will not have to file any US returns for the 2017 tax year. You should file US taxes in April 2019 for all worldwide income earned in 2018. This includes any income you earned January-April 2018 while you lived in the UK. You will be able to claim a tax credit for the amount of tax you paid on this 2018 UK income on your US return to avoid be taxed twice.
For any UK income in future years (i.e. interest, dividends, or capital gains and rental income from real estate), you must pay UK tax. Again, this income should be reported on your US return and then you may take the credit for the amount of tax paid.
Be sure to fill out form P85 and send it to HMRC before you depart the UK. This will let them know that you are leaving the country. Additionally do not forget to include your income from 5 April 2018-3 May 2018, as it must be include on your 2018-2019 return.
When filing your US return in 2019, you automatically get a 2 month extension until 15 June to allow time to gather any UK tax documents you may need. If this is not enough time, make sure to file for an another extension before 15 June. This will give you until 15 October to submit your US tax return.
In California, you will owe state tax in addition to federal (US) tax. This tax is quite high, with the maximum rate being 12.3% for the top income bracket. However, you may deduct this tax payment from your gross income on your federal return.
-Decide if you want to itemize your deductions (figure out which expenses during the year are deductible from gross income) or take the standard deduction (a flat, simple reduction of GI based on filing status). Be sure to do this at both the federal and state levels and figure out which option will leave you with the lowest adjusted gross income (AGI).
As a US citizen you have many tax obligations, such as reporting all foreign income and filing a federal tax return. We are regularly contacted by US expatriates based across the globe that are considering renouncing their citizenship. When you renounce your citizenship you are no longer expected to declare your worldwide income to the IRS. However, there are a number of reasons why renouncing your citizenship is not always the best decision as a US expatriate.
The MET Gala, formally call the Costume Institute Gala, is an annual fundraising event for the benefit of the Metropolitan Museum of Art’s Costume Institute in New York City. The proceeds of the event are mostly used to fund the museums exhibitions, acquisitions and capital movements.
The US expat community had huge press coverage last week; over 300 accidental Americans residing in France have filed a class act again banks that uphold the FATCA, citing discrimination. The act has been triggered by the accidental Americans difficulty receiving loans and opening bank accounts, due to FATCA.
A Foreign Bank Account Report (FBAR) is a form that must be filed with the Financial Crimes Enforcement Network (FinCEN) In order to report foreign financial accounts.
If you have made energy saving alterations to your home during 2017, you are able to claim costs of the alterations on a Form 5695.
As an American living abroad it is essential that you stay in like with your US tax obligations in order to avoid unnecessary penalties and stress. This article offers a guide on what documents American Expats need in order to file their US expat tax returns. These documents are not only necessary to finalize your US expat tax return, but also to protect yourself in the event of an Audit from the IRS.
As a American living in the UK it is normal and expected to become homesick from time-to-time. While the Americans and English have many similarities in terms of lifestyle and interests, there are always going to be some differences that are likely to make any American feel slightly homesick.
Britain may well have one of the best tea selections in the work, however many Americans wake up craving nothing but an an omelet and a hot cup of filtered coffee.
Below we have put together a guide on London’s top spots for any homesick American living in the London:
Under the Tax Relief and Job Creation Act of 2010, the energy efficient appliance credit was modified and extended. This means that tax credit can be claimed for each type of qualified energy efficient appliance produced by the taxpayer during the 2011 calendar year ending with or within the taxpayer’s taxable year.
As an SME in the Creative Industry in the United States, they are eligible to certain tax reliefs. Like all SME’s in the US, an enterprise is eligible to a tax deduction for qualifying charitable donations.
As a US accountant to creative industry professionals, we understand that travel and varying bases is a huge factor of many creative industry jobs. Whether you’re an actor who has had to move to the other end of the country for a production contract, or a musician that is touring the US, we are expert in your tax matters.
On May 25th 2018, the IRS announced several changes in the Tax Cuts and Jobs act that affect moving, mileage and travel expenses.