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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15042
Experience:  International tax
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Hi Just completing my US Tax return. I returned to UK

Resolved Question:

Hi


Just completing my US Tax return. I returned to UK from US in March 2013. I have two employers-one US based and one UK. Paying tax in UK. Not sure if correct but I have put all of my income-adjusted by the sum I earned in US from Jan-March whilst I was resident in US into the Foreign Income section of my US tax return- am I right?
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
If you left the US and had income while a resident then you would file the 1040 and list the income (if from wages ) on line 7.
Your US sourced income would not be foreign income.
If you were required to file the 1040-C form ( the sailing permit or tax clearance form) when you left, make sure that you claim any tax paid as a credit on the 1040 you are filing now.
Customer: replied 3 years ago.

Hi


 


Thanks


 


Where in the form do I declare the US income received whilst resident in UK?

Expert:  TaxRobin replied 3 years ago.

If you did receive income from the US while you were no longer resident in the US, you will also complete a 1040NR (across the top of the 1040NR write DUAL STATUS) and only enter US sourced income on the 1040NR for the remaining tax year while you were in the UK.

Send them both together.

You are splitting the tax year when doing the above so you are reporting your nonresident income and your resident income.

Customer: replied 3 years ago.

Hi


 


Where do I put the tax paid on the 1040 form and is there anything else I can offset


 


Thanks

Expert:  TaxRobin replied 3 years ago.
If it was US tax paid you list it on line 62 or 63 of the 1040.
You would be allowed to claim all your employment expenses that you were not reimbursed for providing you use the Schedule A and itemize but you may find that taking the standard deduction will work best for you.
Customer: replied 3 years ago.

Hi


 


Apologies for delay but your site went down. What is the standard deduction??


 


If you have sensibly gone to sleep no problem for a reply tomorrow.


 


Kind Regards

Expert:  TaxRobin replied 3 years ago.
Hi,
I was gone too because of the site problem.
The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. Generally, the standard deduction amounts are adjusted each year for inflation.
If you are single, the standard deduction is $6,100 for 2013. That would be used on your 1040. The 1040NR does not allow for the standard and you can only use whatever you have on the Schedule A.
Customer: replied 3 years ago.

Hi


 


Thanks


 


At least you could have an early night- so confirms there is always a silver lining.


 


Some hopefully final queries:


 


1) As I moved to UK part way through 2013 do I need to adjust the standard amount accordingly?


 


2) Where on 1040 do I claim this amount. Slightly worried if I put this in I will end up paying tax twice on my UK income. As I am resident in UK and (hopefully) not paying tax twice is there anything else I need to do to ensure that I will not be paying twice ( Sorry as you can guess I really really hate tax returns- give me Quantum Physics any time at least that


makes sense at least to me)



Thanks

Expert:  TaxRobin replied 3 years ago.
1) As I moved to UK part way through 2013 do I need to adjust the standard amount accordingly?
NO, you are allowed the full deduction.
2) Where on 1040 do I claim this amount. Slightly worried if I put this in I will end up paying tax twice on my UK income. As I am resident in UK and (hopefully) not paying tax twice is there anything else I need to do to ensure that I will not be paying twice.
That is entered on line 40 page 2

You should not be taxed in the UK on the US income while you were resident in the US, you will be taxed in the UK on the US sourced income you earned after you moved back to the UK. You would then claim a credit in the UK on the tax you paid in the US on the same income.

SO your 1040NR will reflect that income and the tax you will owe. Then your UK credit will only be based on the 1040NR.

I know it is difficult sometimes doing both the 1040 and the 1040NR as well as self declaring the US income (just the 1040NR income) to HMRC.
You will need the manual on claiming the UK credit for US sourced income:
http://www.hmrc.gov.uk/manuals/dtmanual/DT19850+.htm

TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15042
Experience: International tax
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