# Does someone here know about UK USA income taxes ?



## RenSab (Feb 2, 2011)

Greetings to all.
I posted this already on the UK forum, but thought I could get some tips also from this group. Here are the facts
I will be taking up residency in the USA to join my wife who is already working there on a Traders Visa. I also have the same visa and also the employment auth as well as a drivers licence, so my infra-structure is complete.
Question is specifcally on income taxes: 
As US resident I will need to pay US federal and state taxes, right ?
My employer is UK based and want to pay me also from the UK. I will have a UK employment contract
Does anyone know if under the UK USA Dual Tax treaty I will still have to pay some UK taxes, or would I be exempt completely from UK taxes ? I would be non-resident and non domiciled in the UK. 
Thanks for a qualified response !
RenSab


----------



## BlackBelt (Jan 18, 2011)

RenSab said:


> As US resident I will need to pay US federal and state taxes, right ?


Right. Keep in mind that there are seven states that do not have income taxes (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming).



RenSab said:


> My employer is UK based and want to pay me also from the UK. I will have a UK employment contract
> Does anyone know if under the UK USA Dual Tax treaty I will still have to pay some UK taxes, or would I be exempt completely from UK taxes ? I would be non-resident and non domiciled in the UK.
> Thanks for a qualified response !
> RenSab


I know that the treaty prevents you from double taxation, but I don't know how exactly it works, if you pay taxes in the UK and then asks for a credit on your US tax return, or if get your money in the UK taxfree and then pay all taxes in the US. I believe the first option is the correct one, but you will have to schedule a consultation with an accountant in the US to clarify this for you.

I hope I have helped!

Cheers.


----------



## RenSab (Feb 2, 2011)

Hi Blackbelt, 

thanks for your input. Every little bit helps !

RenSab



BlackBelt said:


> Right. Keep in mind that there are seven states that do not have income taxes (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming).
> 
> 
> 
> ...


----------

