British Expatriate Network

I have been going to and from from the UK to the US over the past 4 months on a visa waiver, while my application for my L1A is approved, which it now is, just waiting for my passport to get back to me then I'll be going back to the US.

My question is .... For the past 4 months when I have been in the US on my waiver, where am I liable for tax too ? The UK tax people have told me I am not liable for UK tax now as I am out of the UK so much (even though my contract and employer is in the UK).... and being in the US on a waiver does not allow me to be employed in the US.

I understand that I will have to pay tax in the US now that I am on my L1A and will have a SS no. Have the past 4 months been tax free ? I suspect not but am not sure.

Any words of wisdom greatly appreciated.

Thanks.
Noel

I have no idea, to be honest, but it sounds like you don't owe tax to anyone. If you are liable in the UK and they don't want your money - I would just keep it if I were you. -?

You should probably talk to an accountant. I have the name of a decent and cheap on in LA we used. I'll try to find his name for you.

Agree very much about considering getting a tax accountant to do your first US tax return.

My understanding is that if you have already been in the US for the best part of four months and are going to be spending the rest of the tax year in the US, you'll meet the significant presence test, which means you have to declare your worldwide annual income. You will only get foreign earned income exclusion for time that you were outside the US. It doesn't really matter where your payroll is located - it's where you are that counts.

Have a look at the IRS website. There are lots of resources for foreign tax payers, including examples of transferring your residence part way through the tax year. It's possible to do a part year return from the date you move to the US, but I'm not sure if it applies to you since you'll probably meet the SPT for the year.