# Dual Citizen posted to the US for 3 years



## Deebs (Mar 6, 2011)

Hi everyone,
I'm looking for advice and help. I am in the UK military and am being posted to the states for 3 years. It has thrown up a few issues. Both my parents are British and I was born in the states whilst my father was working out there. We all moved back to the UK when I was 7. I understand this allows me to have dual citizenship. But as part of the UK military I pay tax to the UK, even if I am out of the UK for more then 6 months (tax office in Glasgow). What happens tax wise regarding the US and IRS. I have never completed a tax return, as the military take income tax automatically and I was unaware of my dual citizenship so have not done any 1040's. I 'technically' wont be working in the US as I will be employed by a foreign government, but as a dual citizen will the IRS want some of my hard earned money to?

Thank you for taking the time to read this and any help is massively appreciated, as I have been given conflicting advice from various sources due to the uniqueness of my situation.

Deebs


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## Jen114 (Mar 5, 2011)

Apparently any American has to file tax returns . I left when I was nine and just found out I have to file all the late returns too. I never worked in states lived in Malta my whole life. it's silly but gas to be done


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## Deebs (Mar 6, 2011)

Thanks, I had heard things to that effect, I am more interested in knowing if I have to pay US tax or whether the US/UK tax treaty (2001 i think?) will save me? I have to agree with you about it being silly. I wont be rushing to do 13 years of tax returns, especially as I don't have to do them in Britain (which I defiantly consider my nationality).


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## Jen114 (Mar 5, 2011)

I can help u with this from what I have heard. So there is an exclusion amount example 91,500 dollars and that is for 2010 so if you earned more than that that u are eligible to pay some tax. Them there are other things I don't understand like there is housing credits and meal credits dunno what these are hVe to work it out go on www.IRS.gov and download publication 54 this will help you. Also I hear that you need to do 3 years only not sure where I got this info but that want I was told


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## twostep (Apr 3, 2008)

I would research the impact of claiming US citizenship based on the location of your birth on your status in the UK military.


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## Bevdeforges (Nov 16, 2007)

Having been born in the US means you are a US citizen and don't have to "claim" anything. But I would talk to someone in the UK military hierarchy to determine what your status will be for your assignment to the US.

Yes, you will need to back file those tax returns (usually, current year plus 3 years of arrears will do) and you will need to get a US passport. It's illegal and there are big fines for entering the US on any other passport if you are a US citizen. (And the immigration people will probably notice the place of birth on your UK passport.)

You shouldn't have to pay taxes on income earned while living outside the US. There's a taxation treaty that is meant to rule out double taxation - but "unearned" income (i.e. anything other than salary) can be tricky to report so that you don't wind up paying twice.
Cheers,
Bev


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## Deebs (Mar 6, 2011)

Thank you for all responses. Think it's all okay. I have to file a section 960 to stop paying UK tax and then I will pay US tax for the time I'm there. This is as per Article 19 US/UK double taxation agreement. My wife will get a visa based on my citizen status. 
Cheers all


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## twostep (Apr 3, 2008)

Deebs said:


> Thank you for all responses. Think it's all okay. I have to file a section 960 to stop paying UK tax and then I will pay US tax for the time I'm there. This is as per Article 19 US/UK double taxation agreement. My wife will get a visa based on my citizen status.
> Cheers all


Your wife will not get a visa - you can apply for one. And for that the US side will want at least three years of tax filings.


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