Hi,

I am working in the UK currently but spent 2 months in the US, not working. It is for this last reason that I was informed on this website that I would need to file tax return in the US also. The way I understand the international tax treaty between UK and US is that the US IRS will take the x amount tax paid in the UK and will calculate my US tax: Gross income (converted to $ and thus y% US tax bracket) - x amount tax pd = US %/amount tax due?

Part two to my question is and my actual question:

My biggest tax deductions can be deducted in the UK (via my Ltd Company) OR in the US (my primary country for paying tax). I am trying hard to limit the amount of tax due in England to gain as much of the strong pound (compared to the US dollar). Am I not shooting myself in the foot as wouldn't it indirectly mean that I pay more tax in the US, if I understand the above tax calculation correctly?

Thank you for your advice.

You are nonresident in U.S. so you will report only the U.S. income. You do not file the tax return.