# Taxes - UK and USA



## Shipresa (Dec 9, 2008)

Hello, can anyone simply answer how we deal with this?

I'm an American citizen and my husband is a UK citizen.

If we both have to claim worldwide income, we can't of course pay taxes in both!

We will be resident in UK for 2009 tax year but 2010 and beyond, in USA.

Thanks for any advice!


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## twostep (Apr 3, 2008)

No there is no double taxation. You have to file US (Hopefully you have done this while in the UK) as this is required by law. Taxes paid in country of residence are being considered.

Bev can give you details otherwise work your way through IRS.gov


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## Shipresa (Dec 9, 2008)

Question - how does both countries 'know' ? I file in USA but reside in UK..... Now I'm married and permanent here, do I always file in USA?


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## Fatbrit (May 8, 2008)

Shipresa said:


> Question - how does both countries 'know' ? I file in USA but reside in UK..... Now I'm married and permanent here, do I always file in USA?


They know because Uncle Sam bullies other governments into telling him. Knowing big brother's modus operandi, though, I doubt there's much quid pro quo in there.

US citizens should always file tax returns on their worldwide income.
The UK generally only requires UK residents to file returns.


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## Bevdeforges (Nov 16, 2007)

Shipresa said:


> Question - how does both countries 'know' ? I file in USA but reside in UK..... Now I'm married and permanent here, do I always file in USA?


The IRS always KNOWS. Or at least they want you to think that.

As a US citizen, you always file US taxes, no matter where you are resident. As someone married to a non-US citizen, chances are you should be filing "married, filing separately" unless your husband is subject to US income tax for some reason.

Earned income is subject to the overseas earned income exclusion - as long as you meet the residence requirements (vastly overly simplified: you have to have been living or resident outside the US for a full year before you are eligible to file for the exclusion - see IRS Publication 54 for the nuances). There are tax treaties with most countries (definitely with the UK) to avoid double taxation if you have other sorts of income, and if your earned income is above the exclusion limit (getting close to $90,000), you can take a credit for foreign taxes paid on the income the US is taxing you for.

When you move to the US, your husband becomes immediately subject to US income taxes on his worldwide income and remains so as long as he holds his green card (or when he takes citizenship - forever more!). The advantage is that you'll be able to file jointly at that point. And be careful - the US and UK tax years overlap, so that first year can be tricky. (US is on a calendar year. UK tax year ends April 5th or so.)

See my reply to your other post for a couple additional caveats.
Cheers,
Bev


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