Permanent Residents of the United States must continue to file tax returns as you are taxed on your worldwide income. Even if you did not return to the US during the year and meet the definition of resident for another country, you must continue to file. Further, if your greencard was taken from you for failure to comply with INS immigration regulations and you have not yet filed Form 8854, then you are still subject to US worldwide taxation until Form 8854 has been filed.
Luckily, if you are being taxed by a foreign country, you can claim a wide number of tax treaty claims, exemptions, deductions, and credits that will usually reduce your taxes to a very small figure. However, some things are tax-free in America and taxable in the other country, and vice versa. This can result is an unfair significant additional tax burden. With careful advance planning of your major economic decisions, most of the time these problems can be averted.
We do this in part by helping you to understand your tax position. An hour’s worth of personal consultation is included in your annual fee. This can be taken through short emails and calls throughout the year, or all at once in an annual meeting. Advice beyond the annual hour will be charged out at our hourly rates.
Some areas you may wish to discuss include estate and inheritance tax issues and other long-range tax planning opportunities. You may wish to review your pension planning options to take advantage of the US/UK tax treaty. If your employment includes a significant stakehold in a company, we can provide advice to help you choose the most tax-efficient remuneration scheme, along with any additional compliance needs that may be generated by your decision.
If you’ve only just moved away from the US, you will be happy to know that the IRS has many special deductions for being abroad. We may need to file your US tax returns as late as January 2016 in order to claim these deductions for tax year 2014. Special extensions are required to allow the extra time to file, but these do not pardon you from paying your full balance due on 15 April 2015. Therefore, you should be sure to pay enough tax by 15 April 2015 (or as soon as possible thereafter) so that you do not incur unnecessary interest or penalties.
Why Choose British American Tax?
- Prearranged calls to tax specialists accepted as late as 11 p.m. GMT.
- Managing Director Liz Zitzow, E.A. has more than fifteen years of experience waiving penalties for late filers.
- Managing Director Liz Zitzow, E.A. has been resolving IRS audits in favour of clients for more than twenty years.
- One hour of free tax planning per year for all clients.
- Income tax planning inclusive of capital gains, primary residences, secondary homes, businesses, inheritance, gift, and trust tax planning.
- Tax planning before the tax year end.
- Tax planning before your move to another country.
- Planning on how to keep or give up your greencard as you wish.
- Tax planning to reduce US tax on the sale of your primary residence.
- Tax planning for LGBT and other alternative lifestyles.
- Bespoke tax planning for inherited trusts.
- Fixed fee or ceiling fee for individual and corporate taxation.
- Accept payment in pounds, euros, or US dollars.
- Accept Paypal, credit card, cash, cheque, wire, and BACS.
- We work alongside your UK accountant to make the total tax between both countries as small as possible.
- We provide legal referrals for all the legal work you need.
- US Enrolled Agents and CPAs.
If your current US tax accountant does at least seven of these, you’re doing well. If they are handling less than seven, we do all of them. Call us.