How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3384
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

is there a double tax relief available for u.s. state tax paid

Customer Question

is there a double tax relief available for u.s. state tax paid (Massachusetts) as well as federal tax paid? also with the u.s. tax return system running on a 31.12. year end rather than a 5/4 year end how is the best way to claim the double tax relief ? i.e. all income for the y/e 31.12.2012 (& state + federal tax)entered on u.k. tax return to 5/4/13 or what was received on an actual basis (but..........I won't know the matching u.s. federal and state tax on a 5/4 basis)
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Double taxation agreements do apply to Massachusetts, but you have to clear the Federal Taxation position first; there the credit is definitely allowed. The balance of any tax credit from the UK can then be applied to the Massachusetts tax levied. I have assumed from your question that you are referring to moneys coming in from the UK.
Customer: replied 3 years ago.

Hi Keith, Sorry you've interpreted the question "the wrong way round". It's a U.k. resident for 2012/13 returning into the U.K. & filing in a U.K. tax Return (returned to U.K. appx 1.7.2012) . There was substantial U.S. income (with federal & state tax paid) for the u.s. tax return to 31/12/2012. On the U.K. tax return it's what to enter, either 1. 3/4 x year end return to 31.12.2012 plus actually received 1.1.2013 to 5/4/13 ............but then how much u.s. (state + federal) to put down i.e. 3/4's (up to 31.12.2012) .but don't know u.s. tax on the period 1.1.2013 to 5.4.2013 OR just enter all of US tax return (for US income & taxes) for their year to 31.12.2012 on the UK return to 5.4.2013 ?

Expert:  bigduckontax replied 3 years ago.
Thank goodness for that. I thought I might have been entering the nightmare of US taxation!

I would suggest that you just apportion the US income and the tax paid (and hence the tax credit claimed under the double taxation treaties) into the appropriate UK tax years. Just keep a note of what you have done for your own records in the event of a subsequent enquiry by HMRC.

Customer: replied 3 years ago.

many thanks Keith.

Expert:  bigduckontax replied 3 years ago.
Pleased to be of assistance.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3384
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions