[USUKGeorge]

Does anyone know the maximum number of days that can be spent in the US before becoming eligible for taxes on UK income in the US?

I'm a dual national living in the UK and want to know what the financial (tax) implications are if I return to the US in 2012. My current understanding is that I will liable to pay full US tax on my 2012 UK income - double taxed in other words.

 

[Bevdeforges]

Not quite. Under the scenario you describe, you would normally take the foreign tax credit (form 1116) for any taxes paid on your UK income in the year of your return to the US. Have to check the details, but even easier, you could probably claim the FEIE (Foreign Earned Income Exclusion) for the part of the year that you were resident in the UK. See Publication 54 in any event.

BTW, you HAVE been filing your US tax returns while living in the UK, haven't you? If not, you'll need to catch up.
Cheers,
Bev

 

[USUKGeorge]

Not quite. Under the scenario you describe, you would normally take the foreign tax credit (form 1116) for any taxes paid on your UK income in the year of your return to the US. Have to check the details, but even easier, you could probably claim the FEIE (Foreign Earned Income Exclusion) for the part of the year that you were resident in the UK. See Publication 54 in any event.

BTW, you HAVE been filing your US tax returns while living in the UK, haven't you? If not, you'll need to catch up.
Cheers,
Bev

Bev,

Thanks for the information. Yes I have always filed my US taxes while I've been here. Where can I find Publication 54?

I have an accountant based in New York, so will make sure everything is legit, but I wanted to get some idea before I went into it with him.

Really appreciate your time to respond, brilliant!!!!

Cheers,

George

 

[Bevdeforges]

The IRS website has a full range of publication and forms. http://www.irs.gov/pub/irs-pdf/p54.pdf
Cheers,
Bev