# Teacher / Researcher in UK and FEIE



## cogitoergo (Mar 12, 2015)

Hi,

I'm a US Citizen and am currently working in the UK as a university teacher/researcher for a term of 18 months. I assumed that I would do what most expats do and pay my British taxes perforce and then file US taxes with either FEIE or the FTC to avoid double taxation. However, a friend just alerted me to the tax treaty between the US and the UK (article 20A - an amended article, though present in the original treaty) which states that teachers and researchers are exempt from tax in the country they are working in, provided they're not a citizen of that country. (plus other details). So this means I could claim back all the UK taxes I've paid. 

May I still then claim the FEIE? (And thus pay no taxes to the US either?) I presume that this is hidden somewhere in a saving clause of the tax treaty, but I've looked and haven't been able to find any such clause. 

Thanks!


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## Bevdeforges (Nov 16, 2007)

If it's in the tax treaty, I'd say go for it. The US excludes teachers and (certain) researchers from paying US taxes while they're in the US, so it's a reciprocal deal. Go ahead and file your US taxes, claiming the FEIE, and if there's some reason you can't do so, the IRS will be in touch. At that point, you can "correct" your return and pay any back taxes. Given that it's an "honest" mistake, they may even waive the penalties (though generally not the interest). And if it flies, well then you're ahead of the game.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

I rather doubt you can take the FEIE on treaty-shielded income, sorry to say. There's a requirement with the FEIE to have a "tax home" in the foreign country. It's right in the instructions. If you avail yourself of the treaty benefit for researchers and educators, my assumption is you've also declared that the U.K. is not your tax home. Check me on that, but I think that's how it works.

You should also check the social security treaty to see whether you should have been/should be making contributions to the U.K. or the U.S. system, or if you have a choice.

You might get some useful guidance if you use the key words "Fulbright" and "Rhodes" when searching IRS publications since these same issues crop up in those situations.


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## Nononymous (Jul 12, 2011)

From where is your funding? That might help determine the best course of action. If it's UK funding and the UK won't tax it, then it's rather up to you and your personal code of honour whether you voluntarily send the US a percentage (if the funding came from outside the US, I'd actually have a problem doing that). Sounds like you mistakenly paid UK tax and need to see if you can get that back first.


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## cogitoergo (Mar 12, 2015)

I've read through the info about the fullbright and it seems that if you are away from the US long enough then you may use the feie. My wages are paid by a British university for teaching and research. My tax home is likely the UK since I have lived here for over a year and have no home back in the US.


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## Bevdeforges (Nov 16, 2007)

I'd go ahead and file that way - i.e. taking the FEIE - and see how it goes. If there's a problem, the IRS will be in touch. And if not, the statute of limitations only runs for 4 years on anything you have declared. Nothing heard in four years, and sure enough, it was the right choice.
Cheers,
Bev


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