Personal Finance & Money Asked by kd7331 on November 7, 2020
A bit confusing to word the question, but I am a US citizen with a 5-year visa allowing me to work and live in the UK full-time (family member visa – wife is EU citizen).
I work remotely as an independent contractor for 2 US-based companies and work full-time in-house for 1 UK company.
I make 45,000GBP/yr (started in September 2018) and will end up with maybe $10k from my US work.
How would my income be taxed? Any info pointing me in the right direction would be much appreciated!
Thank you
In general, if you are living in the United States and are a tax resident, then you pay taxes on foreign earned income no differently than domestically sourced income.
If you live in the UK for more than a certain number of days per year, then you may possibly exclude those earnings from your US income up to a defined amount which is about $100,000. If you are taxed by the UK, then usually you can claim a tax credit or deduction for those taxes against your US taxes.
If the income you receive is in a foreign currency, then the US dollar equivalent must be calculated using the spot exchange rate for that currency as of the time that you received the income.
Answered by Five Bagger on November 7, 2020
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