# Questions on taxes, Social Security, etc. for US to UK move



## paulincville (Apr 27, 2013)

I am currently awaiting news of my spousal visa application for a US to UK move and have a couple of questions regarding taxes, social security and such...trying to be proactive.

1) Will I be liable for filing and paying taxes on money earned while I live in the UK?

2) I am assuming as I've pain US taxes my entire life, I will still be collecting SS at retirement time, are there any resources regarding the rules for expats collecting ss benefits?

3) Are there any expat financial issues I might overlook?

Thanks in advance for your assistance!


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## Bevdeforges (Nov 16, 2007)

From what you've written I'm assuming that you are moving to the UK because you've married a UK citizen. 



paulincville said:


> I am currently awaiting news of my spousal visa application for a US to UK move and have a couple of questions regarding taxes, social security and such...trying to be proactive.
> 
> 1) Will I be liable for filing and paying taxes on money earned while I live in the UK?


As a US citizen, you will ALWAYS have a filing obligation to "The Old Country" unless you either have insufficient income to meet the filing threshold for your filing status, or you renounce your citizenship.

Now, whether you actually have to pay taxes once you've moved to the UK is another question. As long as your earned income (basically, but not exclusively, salary income) is under about $96,000 you won't pay any taxes, thanks to the Foreign Earned Income Exclusion. Interest and investment income is not subject to the exclusion, but doesn't always subject you to paying US tax. Your best bet is to take a look at IRS Publication 54 (which you can download from the IRS website), which explains how taxes work for US citizens living overseas.



> 2) I am assuming as I've pain US taxes my entire life, I will still be collecting SS at retirement time, are there any resources regarding the rules for expats collecting ss benefits?


As long as you've paid into US SS for at least 10 years (40 quarters) you'll be fully vested at retirement. Even if you fall a little short of the 40 quarters, there are provisions whereby they may be able to count some of the time you work in the UK toward vesting. 

The Social Security Administration has a really good website with lots of information for those living overseas. Start here: Service Around the World - Office of International Operations



> 3) Are there any expat financial issues I might overlook?
> 
> Thanks in advance for your assistance!


Oh, there are lots of things that will come up, depending on the specifics of your situation. Start with the IRS and Social Security websites and then see how things develop.

A couple of random suggestions:

Keep at least one US credit card active. (Just change your address to your new address in the UK. Don't talk to the bank about this in advance. Just send them a change of address form.)
Keep at least one US bank account (with Internet access) open with a cushion of money to spend. Comes in handy when you're back visiting in the US, and for making purchases online from US vendors. Again, just send them a change of address form and let them figure out how to deal with it. 

Some folks will advise maintaining a US address to use for banking, etc. IMO this isn't really necessary unless you think you'll need it for some specific purpose. You can pay for a service that will give you a US address and forward mail (and packages) to your for a fee if you find out later that you need this. 

I'm sure other folks will chime in here with other suggestions.
Cheers,
Bev


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## Clinton F. Bateman (May 21, 2014)

One other item I'll mention is that not only are you subject to filing a US return while living in UK, but you will actually have additional forms to file. FinCen 114 and Form 8938 are the most common. If you have not heard of the FATCA or FBAR, google it, as it's a hot topic now. Basically, you will be required to report to the IRS/Treasury any foreign assets you acquire. This includes foreign bank accounts, brokerage accounts, annuities, cash value of life insurance, certain pensions, etc. This has caught many expats off guard in recent years, as they were not aware of the relatively new law requiring this reporting. Good luck with your move!


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## Bevdeforges (Nov 16, 2007)

It really depends on your particular circumstances. For example, the dreaded form 8938 only becomes applicable for overseas residents when you exceed the thresholds (in foreign financial assets) outlined in the instructions here: Instructions for Form 8938 (12/2013)

The Fincen forms only become relevant when your foreign bank accounts exceed $10,000 in total. (And that includes any accounts you may hold in joint name with your NRA spouse, plus any signature authority you have over employer or association accounts if you serve as treasurer or controller.)
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

While it is possible to put a non-U.S. address on a U.S. credit card account, it practice it doesn't work well. Card not present (CNP) transactions, such as online shopping, are difficult or impossible to execute if the countries don't match (issuer and holder). I also don't think one is enough. Holding two U.S. credit cards (at least one with an EMV chip) tends to be more reliable.

Note that U.S. credit cards vary a lot in how good they are for overseas spending.


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## Bevdeforges (Nov 16, 2007)

BBCWatcher said:


> While it is possible to put a non-U.S. address on a U.S. credit card account, it practice it doesn't work well. Card not present (CNP) transactions, such as online shopping, are difficult or impossible to execute if the countries don't match (issuer and holder). I also don't think one is enough. Holding two U.S. credit cards (at least one with an EMV chip) tends to be more reliable.
> 
> Note that U.S. credit cards vary a lot in how good they are for overseas spending.


It might be a function of specific countries, but I still have my US credit card, first issued some 30 years ago. Billing address has changed 3 or 4 times to my various overseas addresses and only once have I had any problems using it online (and that was a company that would not take any credit card with a non-US billing address).

The basic idea, however, is that you use a US card in the US (whether in person or by Internet) for purchases in US $ and then you pay it off from your US account. Saves the exchange rate hassles for small purchases. But the set-up may become more inconvenient once you have run through your US resources and live and work more and more from your overseas resources. Unless you're visiting the US regularly, it may not be worthwhile funding a bank account back there.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

It's a much more common obstacle in recent years (even months) as credit card companies' fraud detectors are turned higher. I've found foreign addresses on U.S. credit cards to render those cards essentially unusable for CNP transactions in the U.S., but that's been my experience and YMMV.


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