[st3104]

Hi,

I am filing US tax Returns for 2008. I am confused which from/s to use for filing as my case is a bit complex.

I worked for an Indian company and I was sent to the US on H1B Visa in the year 2006.
I worked in California for about 5 months. I did get my W2 form for 2006 and filed my returns and all sorted. I was single then.

After that, I quit the job, got married and came to UK in 2007.

In 2008, my previous employer from India sent me a cheque with W2 and 1099-MISC form.

As per the letter, it says it is in accordance with Settlement and Release Agreement between Division of Labour Standards Enforcement (DLSE) and my employer.

Now, I am not sure whether I should file my returns and if yes, which forms to use.

Any suggestions please...

[AtlantaTaxExpert]

If you lived and worked in the UK in 2008, yet received Forms W-2 and 1099-MISC for 2008, you likely will need to pay UK taxes on that income. The fact that you both lived and worked in the U.K. makes the U.S.-sourced income exempt from U.S. taxes.

You will have to file 2008 orm 1040NR to claim that tax exemption, and possibly file Form 8833 to explain the treaty provision in the U.S.-U.K. Tax Treaty that makes the income tax exempt.

So, first thing, make sure the Forms W-2 and 1099-MISC are in fact for tax year 2008. If so, then contact your previous employer from India and verify that they INTENDED to put that income in Tax Year 2008. If the answer is YES to both questions, then file the Form 1040NR to claim the U.S. tax exemption and contact the U.K. tax authorities to determine how to amend your 2008 U.K. tax return.