Hi TurboCommunity Hoping you can clarify if I can use TurboTax or best way to file taxes: Moved to US in Jan 2019On O1 Visa and SSN3x Dependents (Wife, 2x children under 6) on O3 Visa. Appreciate they need to file a W7 with tax return to obtain an ITINWill pass residency test in US for 2019 eg. be present here over 183 DaysHave a property in the US that I'm rentingHave a Self Invested Pension Plan in the UK from previous investmentsHave investments in stocks in US as wellIs this process relatively straightforward and can I file on TurboTax? Thanks, Greg

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GregAllum11

Level 3

Question

O1 Visa - UK National w. Dependents

Forum|Forum|6 years ago
August 25, 2019
3 replies
16 views

Hi TurboCommunity

Hoping you can clarify if I can use TurboTax or best way to file taxes:

Moved to US in Jan 2019
On O1 Visa and SSN
3x Dependents (Wife, 2x children under 6) on O3 Visa. Appreciate they need to file a W7 with tax return to obtain an ITIN
Will pass residency test in US for 2019 eg. be present here over 183 Days
Have a property in the US that I'm renting
Have a Self Invested Pension Plan in the UK from previous investments
Have investments in stocks in US as well

Is this process relatively straightforward and can I file on TurboTax? Thanks, Greg

M

mesquitebean

Level 15

I'm going to ask someone familiar with international filing situations to assist you.

@pk12_2 Are you please able to assist here when you are next in the forum? Thanks!!

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pk_

Level 15

@GregAllum11 Assuming that you were not present in the USA during 2017 and 2018 for any reason/visa and that you moved to the USA with O visa in Jan 2019 ( thus meeting substantial presence by mid year ), yes you should be able to use TurboTax to file your form 1040 as a resident for tax purposes. However, one should note that technically and depending on when you moved to the USA and how much of your UK income you wish to keep out of US taxation, you can actually file as dual status taxpayer - the problem with that situation is that while you may be able to keep your earlier UK income ( during the period you were a NON -Resident ), there are all kinds of restriction on deductions. credits etc. So if I assume that from the date you entered the USA, your would income is mostly US income, then it is easier to file jointly with your spouse and be a resident for the full year ( starting with date you first entered USA ).

Does this answer your query fully or you need more details and or discussion -- please add your questions as comment

P

pk_

Level 15

@GregAllum11 Assuming that you were not present in the USA during 2017 and 2018 for any reason/visa and that you moved to the USA with O visa in Jan 2019 ( thus meeting substantial presence by mid year ), yes you should be able to use TurboTax to file your form 1040 as a resident for tax purposes. However, one should note that technically and depending on when you moved to the USA and how much of your UK income you wish to keep out of US taxation, you can actually file as dual status taxpayer - the problem with that situation is that while you may be able to keep your earlier UK income ( during the period you were a NON -Resident ), there are all kinds of restriction on deductions. credits etc. So if I assume that from the date you entered the USA, your would income is mostly US income, then it is easier to file jointly with your spouse and be a resident for the full year ( starting with date you first entered USA ).

Also when you say you have US property that you rent does that mean you own income property or that your residence is a rented house ?

Does this answer your query fully or you need more details and or discussion -- please add your questions as comment

G

GregAllum11Author

Level 3

Hi PK

Yes it does, I have no UK Income in 2019, so that shouldn't be applicable aside from below:

What happens though for rent payments I receive from my UK property as would not want to pay tax in both the UK and US?

Thanks, Greg

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pk_

Level 15

@GregAllum11 , as a US Resident for tax purposes, you will be taxed on world income and given tax credit ( or deduction which may not be helpful in many situations ) for foreign income that is taxed by another / foreign taxing authority. Thus you report your UK rental situation ( gross income, expenses, mortgage interest, property taxes, management fees etc and depreciation ) on schedule-E. And if you pay any taxes to the UK on the income ( i.e. an income tax based on the net income per UK rules and laws ), then you file a form 1116 to ameliorate the effects of double taxation. You have to tell TurboTax that the property is abroad and it will then work out the depreciation for you. Should not be an issue.

If you need more help on this you can ask now or come back when you are ready to file in 2020 -- one of us will help you through -- you can even ask by addressing the post to one of us .

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