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Tax.appeal.168
Tax.appeal.168, Accountant
Category: US Tax
Satisfied Customers: 4799
Experience:  3+ decades of various tax experience, including ex-pat, tax prep and accounting as a business owner.
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Hello Im a British citizen and reside in the uk and work

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Hello
I'm a British citizen and reside in the uk and work for a uk based company. I am a sea man and work at sea 200 days a year, I work out at sea in Nigeria, china and brazil in the oil industry. I currently can claim all my tax back. We are thinking of moving to California, I will still work for the same uk company. Do I have to pay tax in California?
I don't want to loose being able to claim my tax back and not sure wether living in California will affect that, or if there are ways round doing that?
I'm not sure, please help?
Thank you
Luke summers
Hello and thank you for using our question answering service today.

The state of California taxes residents on their worldwide income, therefore, if you relocated to California and became a resident, your worldwide income will be subject to taxation as a resident. You can refer to the following Franchise Tax Board Publication for more detailed information regarding residency in California;

www.ftb.ca.gov/forms/2007/07_1100.pdf

Please let me know if I can be of further assistance to you regarding this matter. Also note that in about 15 minutes, I will be leaving the computer for a few hours. If you require additional assistance, I will respond to you upon my return to the computer.

As we know that you have choices, we thank you for using this Q&A service today.

Customer: replied 4 years ago.
Hi
I already no that, I have been looking into non resident alien and tax implications
Do you want to know if there is a tax treaty between the U.S. and the U.K.? Yes there is. In the treaty, it prevents double taxation, which means that as a citizen of the U.K., any taxes that you pay to the U.S. will be credited back to you on your U.K. tax return. Link to full treaty below:

http://www.irs.gov/pub/irs-trty/uk.pdf

Article 23 addresses the elimination of double taxation.

Please let me know if this is the information that you were seeking.
I see that you rated me poorly without giving me the opportunity to provide additional information to you. As I have provided the information that I think you were seeking, I would appreciate it if you could change the rating to a positive one.

Thank you again for using our Q&A service.
Customer: replied 4 years ago.
Did u recieved my last reply ?
Customer: replied 4 years ago.
I don't feel you a answered my original question. Please re read my original question
Thank you for your patience. As I mentioned earlier, I was going to be away from the computer for a few hours. I'm back, so which original question would that be?

1) Do I have to pay tax in California? You wrote that you are considering moving to California, which after 9 mos., you will be considered a resident for tax purposes. As a resident of California you will be taxed on your worldwide income. SEE BELOW:

(1) California residents pays California tax on all their income.

(2) California generally taxes California-source income, regardless of a person’s place of residency. A non-Californian will therefore still be taxed on all services performed within California, on rental income from California property, on proceeds from sales of California real estate, and on other types of California source income.

So, who is a resident? In determining residency, California law provides two presumptions. The first presumption is that a taxpayer who, in the aggregate, spends more than 9 months of a taxable year in California will be presumed to be a California resident. The second presumption is that an individual whose presence in California does not exceed 6 months within a taxable year and who maintains a permanent home outside California is not considered a California resident provided the taxpayer does not engage in any activity or conduct within the State other than as a seasonal visitor, tourist, or guest.

REFERENCE SOURCE:

http://klapachlaw.com/blog/38-february-13-2010-.html

2) I don't want to loose being able to claim my tax back and not sure wether living in California will affect that, or if there are ways round doing that?

-----------------------------------------

#2, I feel that Article 23 of the tax treaty addresses this matter (Elimination of double taxation), at least as far as the U.s. is concerned. As for claiming taxes back paid to Nigeria, China and Brazil, I am not able to answer whether or not you will still be able to claim those taxes back. It sounds as if there is a tax treaty or some special agreement between the U.K. and these countries that allows a taxpayer to do this. My thought is that it depends on the language of that treaty or agreement between the respectable two countries, as to whether or not your living outside the UK will affect your ability to claim those taxes back. I am not trained in Nigerian, Chinese or South American tax law, and therefore am unable to assist you in those areas. My suggestion would be to contact a tax specialist in the UK to obtain accurate information about this matter.

I hope that this additional information sheds light on the matter for you.
Tax.appeal.168 and other US Tax Specialists are ready to help you
Thank you very much for the positive rating and the generous bonus. I really do appreciate it. Please feel free to check back in with me if you have other tax related questions. Even if prompted to do so, there is no need to respond to this post.