Showing posts from March, 2017

Filing US Taxes from the UK

Here are the deadlines you should be aware of in 2017:
April 18th: This is the first US tax deadline. US expats receive a two-month extension for filing, but any taxes owed must be paid by this date or interest will accrue.
June 15th: This is the expat tax deadline for all Americans living overseas. This is also the deadline for requesting an extension until October 16th.
October 16th: This is the final tax deadline for those who requested an extension.
A key challenge of getting ready to file your taxes is gathering all the documents needed to prepare your return. This can be harder for Americans living in the UK because the two countries have different tax years.
Although it is common belief you need to wait until your P60 is issued to file, you can usually file much sooner than that. When filing your US tax return, it is best to use your payslips rather than your P60 to report your wages. You can determine exactly how much you earned during the calendar year by using YTD amounts from ju…

What We Know About The Trump vs House GOP Tax Plans So Far?

While the outlines of the House plan are clear, the Trump White House has not issued a plan beyond the broad outlines the president campaigned on. It's unclear when the president's plan will be unveiled.

Trump's plan would reduce the top corporate tax rate from 35 percent to 15 percent, and also allow lots of non-corporate businesses, like sole proprietors and partnerships to pay that low rate. 
The House would cut the corporate rate to 20 percent.
Among the biggest changes is something called a border adjustment tax, or BAT. It would levy a 20 percent tax on all imports of goods and services into the U.S. 
On the other hand, U.S. exports of goods and services wouldn't be taxed at all.

Is stronger growth the answer?

If the Trump administration rejects the idea of a border adjustment tax, it will be hard pressed to find a way to make its tax plan "revenue neutral." And one path open to it would be more aggressive "dynamic scoring." Mnuchin has hinted th…

What's Form 1099-K?

Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance.  You should receive Form 1099-K by January 31st if, in the prior calendar year, you received payments: from payment card transactions (e.g., debit, credit or stored-value cards), and/orin settlement of third-party payment network transactions above the minimum reporting thresholds of –gross payments that exceed $20,000, ANDmore than 200 such transactions

What does my Form 1099-K report to me? A Form 1099-K includes the gross amount of all reportable payment transactions.  You will receive a Form 1099-K from each payment settlement entity from which you received payments in settlement of reportable payment transactions.  A reportable payment transaction is defined as a payment card transaction or a third party network transaction. Payment card transaction means any transaction in which a payment card, or any account …

If I'm not American and I sell stuff online to the US, do I need to pay US Income Taxes?

The tax treatment of non-US entrepreneurs selling into the US is probably the most misunderstood issue in all of US international tax.

This article discusses the US tax treatment of “non-resident aliens” or “NRAs.” You’re an NRA if you’re NOT any of the following:
A US citizen,A US permanent resident (i.e., a “green card holder”), orSomeone who’s lived in the US long enough to pass the “substantial presence test.”An accidental American
There are two very different US tax regimes potentially applicable to you—the “passive regime” and the “active regime.”


When you receive certain types of passive income (such as interest, dividends, rent, or royalties), you’re subject to a flat 30% tax. The general 30% rate may be reduced by an applicable tax treaty.

Typically, the payor of this sort of income is required to withhold tax at the applicable rate and pay that amount over to the US government. Then, you’re not required to file a US tax return—the withholding fully takes care…