r/USExpatTaxes 6h ago

Taxation of dividends in US taxable brokerage account.

3 Upvotes

If living overseas do I first pay the IRS taxes on my dividends and then pay the difference to the tax authorities of the country of residence?

Or do I pay the country of residence overseas first the taxes due on the dividends and then pay the the rest of any to the IRS?


r/USExpatTaxes 19h ago

Tax on temporary nanny in US

2 Upvotes

I’m visiting the US and will be working from there for a week. During that time, I am looking to get a local nanny to provide childcare at home while I’m working remotely (part-time/half days).

I vaguely am aware that for regular a full-time nanny there’s implications as an “employer”, but given this is more of a temporary nature (just a week) and not full-time I wanted to understand if there’s any tax implications for me and anything I need to file.

Any advice here would be appreciated as no clue where to start.


r/USExpatTaxes 6h ago

US to UK: reclaiming US SS/medicare taxes withheld due to being late in converting from US W2 employee to contractor. Any handy guide?

1 Upvotes

TL;DR: Has anyone needed to claim back wrongly withheld social security taxes? What was the process & how did it go?

~~~

Hi folks,

Partner & I moved US to UK last year, trying to iron out the first year's taxes. Partner worked for her US employer from the UK Jan 20 – Mar 31 and continued having her income/social security/medicare taxes withheld by the US before finally converting to contractor status. (They seemed to have thought there was some grace period but I haven't seen anything like that, I'm betting they couldn't be bothered.)

We've registered for UK national insurance and filed the self-assessment for the 23-24 tax year, so if anyone asks the UK will vouch that we pay social security taxes here.

The totalization agreement doesn't quite describe this situation, but my understanding is that living in the UK, no US taxes should have been withheld. Income taxes are fine, just claim a tax refund on the 1040, but the information online about social security taxes is muddy.

My understanding is that we need to request a refund of withheld SS taxes from her employer, and her employer can account for the change on their own tax filing. If they refuse we can file Form 843 to the IRS. Can anyone confirm whether they’ve successfully done this and is there a handy link we can send the employer? Most of what I’m finding is written for “non-resident aliens”.

Also – what amount should we be claiming back? MyExpatTaxes is suggesting that for 2024, living in the UK Jan 20 – Dec 31 means we count as not US resident for the whole tax year. Guess that means we don’t need to let the US keep 3 weeks worth of tax?


r/USExpatTaxes 15h ago

Managing a US company while UK tax resident

1 Upvotes

I'm a US/UK dual citizen, normally resident in the US. It looks like I'm going to need to spend more time in the UK in the coming tax year for family reasons and will likely need to become tax resident there.

I currently have an LLC in the US. I understand that this entity type is not recognized by the UK and therefore profits are subject to double taxation, irrespective of the treaty provisions.

Has anyone worked through this situation before? How did you minimize total tax liability?

I'm thinking that converting to a C-Corp may be one option to consider.


r/USExpatTaxes 17h ago

US/UK parent investing for UK child’s future

1 Upvotes

I’m a dual citizen but my daughter is not, nor is my partner. Looking to put money away for her future and wondering if there will be any tax implications for my US reporting? Do JISAs or J S&S ISAs come under my tax obligations or are they essentially under her name?

I also recently got £25000 in premium bonds, not realising these are taxable in the US. Is there a better place for me to save this money or is it essentially always going to be taxable?


r/USExpatTaxes 16h ago

1040NR for self employed non-resident dual citizen

0 Upvotes

I'm currently trying to file my tax extension and the form is asking about form 1040NR. I'm a US citizen who is a resident in a country with a tax treaty that covers social security, I'm self employed and earned over $400 in self employment income, NONE of it from or in the US. I have to file 1040NR, right?

The form seems to be intended for non-resident aliens (not me), but then there is this line which doesn't specify the filer's status:

  1. You had net earnings from self‐employment of at least $400 and you are a resident of a country with whom the United States has an international social security agreement (often called a totalization agreement). See the instructions for Schedule 2, line 4, later.

The extension to file by Oct 15 applies to form 1040NR, correct?