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    I am a US citizen currently teaching in the UK and obviously paying UK tax. I now have to pay tax to the USA as well apparently, which will mean that I will be taxed at higher than 50%. Can anyone help as I wont be able to afford to stay here.
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    (Original post by HD9)
    I am a US citizen currently teaching in the UK and obviously paying UK tax. I now have to pay tax to the USA as well apparently, which will mean that I will be taxed at higher than 50%. Can anyone help as I wont be able to afford to stay here.
    Don't panic!

    As you know, as a US citizen (or resident) you are taxable on your worldwide income (unless you live in Puerto Rico). However, many countries have dual taxation agreements that, essentially, allow you to claim a foreign tax credit on your US federal return - the UK does. The intent is to ensure that you don't get taxed twice, although I suspect that there is some more detail to it. I never did the calculations myself - my accountant does, as learning the UK tax system was already enough for me.
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    (Original post by RogerOxon)
    Don't panic!

    As you know, as a US citizen (or resident) you are taxable on your worldwide income (unless you live in Puerto Rico). However, many countries have dual taxation agreements that, essentially, allow you to claim a foreign tax credit on your US federal return - the UK does. The intent is to ensure that you don't get taxed twice, although I suspect that there is some more detail to it. I never did the calculations myself - my accountant does, as learning the UK tax system was already enough for me.
    Many thanks Roger - I was thinking that I would have to get an accountant in the first instance
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    Yep, the above is pretty much the case - and the UK tax rate is higher than the US tax rate so in theory you should never owe them taxes, you just need to make sure you file the correct forms. I'm still having to work out which those are for next year :s
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    (Original post by artful_lounger)
    Yep, the above is pretty much the case - and the UK tax rate is higher than the US tax rate so in theory you should never owe them taxes, you just need to make sure you file the correct forms. I'm still having to work out which those are for next year :s
    That's great, thank you!
 
 
 
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