Moving Out of the Country

[sound_of_silence]

I did not realize that the event was here and I posted this elsewhere -_- This is where I meant to post it. The instructions for this event were not very clear...Someone else already helped me with some of these questions, which I have thusly deleted. I need help with the remaining, still, please!

So, I am planning on moving to Scotland either later this year or very early next year. I have many questions, as I know I will still be taxed as an American but I also know there are tax treatise between the US and the UK.

1) What exactly is still taxed in the US (as I will NOT be working in the US at all, indefinitely) but I DO have a bank account I plan on keeping (for the purposes of paying my taxes, in all honesty, but it will have minimal money in it) and I DO have one MyFRS account (it only has like $4,000 in it and it's not currently being paid into so I'm not even sure if it's worth having).  Will I be double-taxed just on my income or on other things?

2) Will I be taxed under the state of Florida as that is where I've lived all my life when I file my taxes? Please keep in mind that I am single, have no dependents, and own no property in Florida.

3) What receipts do I need to keep in the move and for perpetuity when I'm over there so I can continue to file my US taxes?

4) I am going to be working as an RN over there. Does this effect my taxes? As RN's make substantially more money over here than they do over there and I'm not sure if there are any tax breaks for healthcare workers working abroad.

5) I will be gifting my car to friends of mine who desperately need a car. Do I need to do something special on my taxes for this?

6) Will I still be able to use TurboTax or will I have to go to a special tax filer with my mounds of receipts? I've used TurboTax since I started doing taxes and I don't really know another way.

7) If, for whatever reason, the IRS audits me how would that...work? Would I just show them my receipts over a webcam, like...would they send a representative over to mine in Scotland?

😎 If I give to charity can that be taken off my US taxes as well as my UK taxes, or is that only counted once?

9) If I keep my nursing license in FL and continue to keep it updated so I'm able to work in FL, the money I paid on my CEU's in order to keep it active would still be tax-deductible, correct? Even though I am not working in FL? That is true for my renewal fees for my nursing license, as well?

Any other help would be graciously accepted!

[AdamNe]

Hello @sound_of_silence ! Thanks for the message

As you have a multitude of questions which may have varied answers based on the details of your situation, I may not be able to answer everything here. If you are a TurboTax Live customer, I suggest you reach out to us over the phone so our agents can give you better personalized service and help you understand the tax implications of these big life changes. However, I will do my best to address each one of your issues: 

1) In general, the US taxes its citizens on ALL worldwide income. However, you have options to avoid double taxation. Those options are the Foreign Earned Income Exclusion and the Foreign Tax Credit. There are many complex rules and intricacies of each, and it would take a detailed understanding of your situation to understand what would be best for you to do, but rest assured that you have options available to you to make sure you are not fully taxed by two countries. 

2) Florida does not tax income, so you should be all set there! 

3) Just like when you work in the US, be sure to keep hold of the year end income statement or tax statement that your employer gives you. In some countries it comes at different times of year than we are used to here in the US, so you may find that you need to file an extension on your US taxes to get the timing right. 

4) I'm not aware of any special tax treatment for healthcare workers abroad, when it comes to US tax code. 

5) If the fair market value of the car at the time of the gift exceeds $15,000 you will need to file a Form 709, Gift Tax Return. This is separate from your income taxes. 

6) Absolutely, TurboTax will be available to you to file your US taxes. 

7) The IRS, in general, audits individuals either by correspondence (mail, phone and email), or at an IRS location (more uncommon). Because you are living overseas, you might consider purchasing our MAX package when you file your next tax return which includes Audit Defense services. Then, you will have a representative here to deal with any audit issues that may arise. 

😎 Charitable donations made to tax-deductible charities (501(c)3 organizations) will still be deductible on your US tax return. Most foreign charities will not qualify. 

9) Those types of expenses are only deductible if you are working as a contractor (i.e. are self employed). Job-related itemized deductions have been eliminated in the tax code since 2017. 

[sound_of_silence]

Thank you so much for answering these! As for question one, I'm talking specifically anything else that I might need to report, as I know that income is taxable, and I already know about the foreign exclusions on income. Say, MyFRS amount? I wouldn't think, as I'm not putting any monies into this. This is basically my retirement account - similar to a 401(k).

For number 2, I get that Florida doesn't have any state taxes or whatever - like I never have to do anything for that part. I'm just clarifying if I will continue to not have to do anything or if, when I move over to the UK as a resident, will my taxes still count under FL since I don't own any land in FL?

I appreciate it, thank you so much!

[AdamNe]

If you take any money out of your retirement account, that will be reported on your income tax return. If you don't move anything inside of it, you won't need to do anything. If you put money into an IRA, you need to claim that on your income tax return as well.  

For purposes of your US taxes, going forward you will not be a resident of any state. There are no Florida related implications.