Hahn1040 Posted March 13, 2015 Report Share Posted March 13, 2015 My client married a man from the UK several years ago She works for the State Department. He got his Green card in about a week. He has no US source income He receives a pension from the UK. For the past couple of years, I have filed them MFJ reporting his pension and the foreign tax credit for the tax he pays the UK covers his portion of the tax. In 2014, he has earned income as well. He worked in Afghanistan and then Turkey pays tax to the UK was in the US for 49 days thus not qualified for 2555 His wages were $105,000. the credit for tax he paid UK doesn't begin to cover the US tax obligation again NO US source income does anyone have any ideas? Is there a treaty that would help? I have tried reading the treaties, but I am not good at digesting all that legaleze... ..and is there anything I can do with the National Insurance he pays to the UK? thanks so much Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 14, 2015 Report Share Posted March 14, 2015 Can't do anything with the National Insurance. It's the UK version of Social Security. You don't have to use a calendar year for the 330 days if he was out of the country for 330 days. Was he out of the country, perhaps for a few days at the end of 2013 or the beginning of 2015? Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 16, 2015 Report Share Posted March 16, 2015 Good for him. He can make millions in UK in 2014 and the US doesn't mind. For next year, he will have to file a U.S. tax return and report his income based on the tax treaty between UK and us. Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted March 16, 2015 Author Report Share Posted March 16, 2015 Thanks Joan, I have counted days lapping 2013 and 2015, but can't get 330 days out of the country. He comes home about every other month for 7-10 days... and more at the first of the year... oh well, the wife took it pretty well when she asked how many thousand they would owe and I said about 18. Now we are looking at the FBAR- and the 8938. He is the sole signer on the company's account in Turkey that pays the employees. He has no ownership in the company; is just a regular employee. this just started in 2014.. so have time to report... NOT one of those cases where we learn that they have been doing it for umpteen years and they never mentioned it unlike my couple where the wife is from Vienna Austria (They live in Vienna VA) Just found out this summer that she gets a "small pension in Austria" "She pays tax on it there, so we never thought to tell you about it" Even though I ask every year- do you have any other income.... Hopefully the foreign tax she paid will cover it.... they still haven't brought me anything on it... Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 16, 2015 Report Share Posted March 16, 2015 I misread your post. I thought he got his green card a week ago. Quote Link to comment Share on other sites More sharing options...
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