O1 Visa - UK National w. Dependents

[GregAllum11]

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

[mesquitebean]

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

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

[pk]

@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

[pk]

@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

[GregAllum11]

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

[pk]

@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 .

Welcome the USA