Moved out of country

[stacyting]

Hi! 

I moved out of country in Oct 2021, I don't pay foreign tax because I am still employed by a US company and getting paid in USD as a contractor.

what do I do for my 2022 State tax filling in this case? do I still need to pay the state tax (NY) if I don't live in the country full year 2022?

[Anonymous_]

@pk

[pk]

@stacyting, I am not sure that I understand why you do not pay foreign taxes , pay US taxes . So please can you add the following information ( so I have the full scenario ): (a) your immigration status ( US citizen / Green Card / Resident / Non-Resident Alien ); (b) your Tax id type ( SSN / ITIN ); (c) Country you are currently residing in and is this your home country; (d) your employer ( private company , US govt or govt associated entity, US gov. department etc. etc. ); (e) your employers pays you how --- local currency per your invoice or deposits into your US bank or what ; (f) when did you leave US and when did you arrive at your current location; (g) do you own any assets in NY or this is where you used to live/ domiciled ; (h) what other connections do you have to NY and or to USA -- family, large assets/ houses etc. etc or just the bank ? You are talking about calendar year 2022--yes ? Once I hear from you , I will circle back pk

[stacyting]

Hi, thank for your reply.

a) I'm a US citizen

b) SSN type.

c) I currently live in the UK and this is not my home country.

d) My employer is a US private company in Fashion.

e) I started working for this company before the move.I am a contractor working remotely, I get paid by the hourly rate ($USD) and money is deposit into my US bank weekly. 

d) I left US and moved to UK in Oct 2021.

e) I own an apartment in NY, I moved to UK because my partner's job relocated him.

f) besides the apt just have the bank. and yes this is for 2022.

Thank you

[pk · Accepted solution]

@ stacyting, As a self-employed US citizen and UK resident ( domiciled but not ordinarily resident ) of the UK,, 1. for US tax purposes , your earnings are foreign sourced , eligible for foreign earned income exclusion --- you need to file form 1040, form 2555 and schedule-C to cover the self-employed income, 2, for UK tax purposes you need to file a tax return based on your self-employed income ( even though paid in the US bank ) because the work is done while physically in the UK. You will also need to apply to SSA to get a certificate of coverage , which will then allow you exempt status from local "social security " equivalent but you may still have to pay the medical insurance portion ( National health). Please see this page from the IRS -->https://www.irs.gov/individuals/international-taxpayers/self-employment-tax-for-businesses-abroad and Pub 54 from the IRS.; and also this from SSA ---> https://www.ssa.gov/pubs/EN-05-10199.pdf Is there more I can do for you ? pk

[stacyting]

Thank you so much @pk ! I will take a look at these doc for reference, this is helpful!