Hi

I have a slightly complicated situation. While working for a British company (paid in GBP), I was transferred to the US. I was treated as an ex-pat for the time I was in the US. I was present in the US for most of 2005. I filed my tax returns normally in the UK while I was gone. When I quit the company, I was provided with a W2 form, and it shows my salary in USD and also that the company paid taxes to the US government. I don't know what to do with this, and how I should file taxes (if any).

I let this go awhile (tax year was 2005), and no one has contacted me since, but I want to make sure that I don't get in trouble with the tax service, and do things properly.

Thanks!

Shanbell:

You need to file the 2005 tax return as soon as possible, because if you wait until after 15 April 2009, you will FORFEIT any refund that is due.

And, more than likely, you DO have a refund coming, because, based on your posting, you paid taxes on this money with your U.K. tax return, while taxes was also withheld and sent to the U.S.

The FICA (Social Security and Medicare) taxes cannot be refunded, but they should be credited against similar programs in the U.K. under the totalization agreement between the U.S. and the U.K.

The income taxes, on the other hand, should be at least partially refundable due to the Foreign Tax Credit (Form 1116) you will receive for the U.K. income taxes you paid on your U.S. salary.

If you need professional help, I specialize in helping people just like you. You can email me at the address below, or send me a Private Message and I will give you the details.

Depending upon the date you entered the U.S. and you left the U.S. and other visits in and out of the U.S. you will decide if you file resident tax return or non resident tax return.
Mostly, it appears that you will file non-resident tax return. In that case, you will only report income earned in the U.S. from the U.S. sources.
You can get professional help from [email protected]