Hi,

I am from UK and have been here in US for 160 days on L1 Visa . I am returning to my home country before I hit 183 days limit to avoid paying tax.

If I have been in US from May through October, when can I return so that tax is not payable for exceeding 183 days.

Thanks,
Steve

Steve:

To answer, I would need to know the EXACT date of your arrival.

Also, the 183-day limit is NOT the only consideration in determining if your income is tax-exempt.

The other consideration is the SOURCE of your income. If you are being paid by a U.K. company from the U.K. in GBP, then your income should be tax-exempt provided you leave before day #183.

If the income is sourced from a U.S. company or a U.S.-based subsidiary of your U.K. employer, then your income is subject to ALL U.S. taxes regardless of the duration of your stay.

Thanks AtlantaTaxExpert,

I reached US on May 5th and am leaving on October 25th and hence am well within the 183 bracket.

My salary is being paid in GBP in the UK and hence I am tax exempt but if I stay here longer, I think I will be liable to pay tax.

Now, if I want to return again, how long should I wait so that I am not levied tax ? Does it mean than if I return on Jan 2010, till June I will not have to pay tax ?

Thanks a lot,
Steve

The 183-day rule applies for the calendar year, so, to avoid being subject to income taxes, you need to make sure your 2009 stay in total dies not exceed 183 days.

The clock restarts on 1 Jan 2010, during which you can stay up to 182 days in 2010 while still avoiding U.S. income taxes.