# tax help -Canadian with Green Card living in the UK but working for US company



## m2oswald (Mar 22, 2017)

I'm really not sure if this is the correct forum or if I should be in the US expats forum, but I'm hoping someone can help me out. I'm Canadian, but had lived in the US for almost 20 years. First on TN visas, then Green Card.

I moved to the UK in June of 2016. I applied for a permit that keeps my green card valid for up to 2 years, even though I'm no longer in the country. I'm working for a company here in the UK, but I'm also still doing a bit of work remotely for my old firm in the US.

My question is about my tax status. Am I still considered a resident alien, or am I non-resident because I've moved out of the country?


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## nyclon (Apr 3, 2011)

I've moved your post to the Tax Forum where I think you'll get a better response.


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## m2oswald (Mar 22, 2017)

Sorry about that. Thanks for moving the thread.


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## Moulard (Feb 3, 2017)

m2oswald said:


> Am I still considered a resident alien, or am I non-resident because I've moved out of the country?


Until you surrender your green-card by filing an I-407 or have it taken away from you by a court or other administrative means, the IRS will continue to treat you as if you are a permanent resident even if you could no longer enter the US on it.

In short you must continue to file US tax returns as a resident alien on your global income.


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## Bevdeforges (Nov 16, 2007)

Yup - as Moulard says, as long as you are a Green Card holder you're considered a "resident alien" and subject to US taxes on the same basis as if you were living in the US. OTOH, the fact that you are physically located in the UK while working means that you are "working in" the UK and should be paying UK taxes and social insurances first. (The good news is that that does make your earnings eligible for the FEIE and thus excludable for US tax purposes.)

If your employer is still withholding US taxes and social security, you may want to see what you can do about that. You can probably get the Federal taxes back. State taxes are a bit trickier - sometimes you can, other times you can't. And if you're paying into the UK social insurance system, you could be eligible to NOT have US SS taken from your pay. If they are taking it from you, it's pretty darned difficult to get back (though it will count toward your eventual retirement benefits).
Cheers,
Bev


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## m2oswald (Mar 22, 2017)

Thank you both for your help. I was guessing this would be the case, but it's good to get confirmation. I appreciate the quick responses. I'm paying taxes and social security here in the UK, but unfortunately I don't qualify for the FEIE yet because I haven't been here for a full year. I think I can ask for an extension to the 2016 taxes and once I qualify for the FEIE in July can use that retroactively. I think. I have to do more research - it's pretty confusing.


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## Bevdeforges (Nov 16, 2007)

The "usual" way to take the FEIE your first year outside the US is to extend your deadline to a month or so past your anniversary date (so you have a full 12 consecutive months). 

IRS Publication 54 has an example of how this is done, but it's pretty standard procedure.
Cheers,
Bev


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## Moulard (Feb 3, 2017)

As Bev say you can tweak when you file to ensure you meet the physical presence test.

Remember that with an overseas address you can file by 15 Oct if you apply for an extension using Form 4868. Thus your physical presence year could be based on a period of Nov-Oct.


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