# Mixed tax year



## Wampus (Dec 6, 2012)

Hello,

I got a job at an American company, starting March 2013. However, due to visa issues, I will be able to work in NYC only from October onwards. In the meantime, I will work at my employer's facilities in London. I will be paid in pounds while in the UK. I will be on holiday for the first two months of 2013.

Am I right in assuming that I will pay taxes in the UK on my pay earned during 7 months in the UK, then I will pay taxes in the USA on the last three months pay? And thus that I will alleviate some of the effects of the so-called "progressive" tax implemented by both countries?


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## Bevdeforges (Nov 16, 2007)

You aren't subject to US taxes until and unless you are resident in the US (unless of course you happen to be a US citizen living outside the US). 

When the time comes, you'll want to read through IRS Publication 519 The Tax Guide for Aliens. This is the 2011 guide: Publication 519 (2011), U.S. Tax Guide for Aliens which will give you the general idea. 
Cheers,
Bev


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## Wampus (Dec 6, 2012)

Thanks, I will read it. However, this raises a question: If I don't pay taxes in the US, where will I pay them? It would be too good to be true if I didn't pay any


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## Bevdeforges (Nov 16, 2007)

Normally you pay taxes where you are considered "resident." And for tax residence, if you are physically present for at least 183 days in the tax year, it's more or less assumed you are tax resident. 

One issue you'll have is that the UK tax years is different from the US tax year - so you may wind up having to file in both countries for the overlapping tax years.
Cheers,
Bev


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## Wampus (Dec 6, 2012)

Thanks.

I'm still struggling to get an idea of my taxes. Not that I plan to fill the forms myself - I'll hire a professional accountant for that. Just trying to get an idea...

At this point I have the impression that I will be a tax resident in the UK in year 2013, for I will be physically present in the UK for 7 months = roughly 210 days > 182.

Thus the UK will be my "tax home" in 2013. It follows that I will not be taxed in the US for my revenues earned in the USA during the last three months of 2013- see section "Exceptions to the Residence Test" subsection "Tax Home"of the investopedia article "Tax Rules For Resident And Nonresident Aliens". However, I will be taxed - in the UK - on the sum of my UK and US revenues for 2013.

In 2014 (full year in the US), I will meet the residence test, for I will be present in the US for more than 183 days in the current year. I will then be taxed like a US citizen.

Looks likes I got it right ???


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## nikkisizer (Aug 20, 2011)

Hello Wampus,

Based on your dates you will not be classed as UK resident for tax purposes in the 2013/14 tax year if you will be working in NYC from 01 October 2013 onwards.


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## Wampus (Dec 6, 2012)

nikkisizer said:


> Hello Wampus,
> 
> Based on your dates you will not be classed as UK resident for tax purposes in the 2013/14 tax year if you will be working in NYC from 01 October 2013 onwards.


Is that because the fiscal year begins and ends in April and I will just fall short of the 183 day bar?

Then...where will I be taxed ? It would be great if I didn't pay taxes anywhere but I have a hard time believing that.


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