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    louismarelise's Avatar
    louismarelise Posts: 14, Reputation: 1
    New Member
     
    #1

    Mar 4, 2010, 02:08 PM
    Would this increase my tax in the US?
    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.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Mar 5, 2010, 02:37 AM

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

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