3 ms·

I am a US/EU citizen that has stock options in a start-up based in the UK, where I am a permanent resident. I am absolutely clueless on whether or not I need to

I am a US/EU citizen that has stock options in a start-up based in the UK, where I am a permanent resident. I am absolutely clueless on whether or not I need to file something...

akgerber 13y ago
'If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.' http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad http://www.irs.gov/Individuals/International-Taxpayers/U.S.-...
- gst 13y ago
  Unless there's a tax treaty between the US and the country where you reside.
  - seanmcdirmid 13y ago
    This is not relevant, you still have to file and can deduct your foreign paid taxes in any event. The tax treaty becomes relevant when you are working in the states on behalf of your foreign employer (china and USA really needs a better tax treaty).
    - gst 13y ago
      This really depends on the particular tax treaty. Do you have to file taxes? Most likely yes. Do you have to deduct taxes? This depends: Some tax treaties specify that you only have to pay the "difference" in taxes, i.e., by deducting the taxes that you paid to the other country. Some other tax treaties specify that only one country is allowed to tax a particular type of income. In my particular case (foreign citizen, resident alien) this means that I currently pay 100% of my taxes in the United States (where I also reside). In case I would move back to my home country the tax treaty wouldn't allow the United States to tax the income I make in my home country.
      - seanmcdirmid 13y ago
        If you are a USA citizen or green are holder, you must file, no "most probably" about it; treaties don't regulate that. You pay taxes either to them or us. The USA also offers a foreign income deduction of $90k+ so many of us don't pay us taxes even if the foreign taxes come in lower (highly unlikely as the us has lower taxes than most countries). Tax treaties only handle who you pay when payment is ambiguous; e.g. If I work for Microsoft china and go on a business trip to Seattle, I'm liable for taxes by both china and the USA (I.e. Double taxation) because the tax treaty is crappy. They are meant to normalize tax policies between two countries, they have nothing to do with tax avoidance (well avoiding double taxation is a goal).

I am a US/EU citizen that has stock options in a start-up based in the UK, where I am a permanent resident. I am absolutely clueless on whether or not I need to file something...

akgerber 13y ago

'If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.' http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad http://www.irs.gov/Individuals/International-Taxpayers/U.S.-...

gst 13y ago
Unless there's a tax treaty between the US and the country where you reside.
- seanmcdirmid 13y ago
  This is not relevant, you still have to file and can deduct your foreign paid taxes in any event. The tax treaty becomes relevant when you are working in the states on behalf of your foreign employer (china and USA really needs a better tax treaty).
  - gst 13y ago
    This really depends on the particular tax treaty. Do you have to file taxes? Most likely yes. Do you have to deduct taxes? This depends: Some tax treaties specify that you only have to pay the "difference" in taxes, i.e., by deducting the taxes that you paid to the other country. Some other tax treaties specify that only one country is allowed to tax a particular type of income. In my particular case (foreign citizen, resident alien) this means that I currently pay 100% of my taxes in the United States (where I also reside). In case I would move back to my home country the tax treaty wouldn't allow the United States to tax the income I make in my home country.
    - seanmcdirmid 13y ago
      If you are a USA citizen or green are holder, you must file, no "most probably" about it; treaties don't regulate that. You pay taxes either to them or us. The USA also offers a foreign income deduction of $90k+ so many of us don't pay us taxes even if the foreign taxes come in lower (highly unlikely as the us has lower taxes than most countries). Tax treaties only handle who you pay when payment is ambiguous; e.g. If I work for Microsoft china and go on a business trip to Seattle, I'm liable for taxes by both china and the USA (I.e. Double taxation) because the tax treaty is crappy. They are meant to normalize tax policies between two countries, they have nothing to do with tax avoidance (well avoiding double taxation is a goal).