PDA

View Full Version : Very confusing tax situation - 1099, w2 not in US anymore


ltighy
Feb 12, 2011, 01:09 PM
Hi

I will try and explain my situation clearly. I lived in the Us on a H1b visa for a year and a half, I started as a 1099 contractor and then was taken on as a w2 employee. I declared and paid taxed last year, jointly with my husband. In July this year we moved back to the UK, my husband has receieved his w2 for the work he did till July and I havw also receieved mine for the same period - we understand that even though we do not live in the US we should do a return for this?

When the situation gets more confusing is when I left the US the company I worked for kept me on as a 'service' they made an international transfer each month upon me invoicing them. I get taxed on this income in the UK as self employed but as they were paying an invoice for a service and the money was is being paid to a Uk bank account and I am a non US resident I would not be declaring this income. I have today received 1099 misc? I didn't think I should be receiving this as I am not a contractor in the US? Should this be issued to me? Do I now have to pay the tax in the Uk and US even though I was not a resident anymore? Please help so confused?

MukatA
Feb 12, 2011, 08:32 PM
If you filed resident tax return in 2009, you will file dual status tax return for 2010.
1099-misc income received during nonresident period (that is after you left US) is not taxable in US.

For future, send form W8-BEN to your employer that tells your employer about your nonresident status. They need not issue 1099-misc to you.