How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3737
Experience:  3+ decades of varied tax industry exp. Tax Biz owner
58285678
Type Your Tax Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

If I am a consultant who has incorporated as an LLC in Delaware.

Customer Question

If I am a consultant who has incorporated as an LLC in Delaware. I have been offered a job consulting in London. Assuming a visa is approved, how would this affect my personal and corporate taxes as I file?
Submitted: 2 years ago.
Category: Tax
Customer: replied 2 years ago.
Are there any other tax, liability or other considerations that I should be aware of?
Expert:  Tax.appeal.168 replied 2 years ago.
Welcome. Thank you for choosing us to assist you. My name is ***** ***** my goal is to help make your life, a little... less taxing.
There is a tax treaty between the U.S. and the U.K. that eliminates double taxation. If you are a U.S. citizen or Green Card holder, you are required to report your worldwide income. You will also be taxed on the income in the U.K.
Are you a U.S. Citizen of Green Card holder? If so, and you will be working in London, providing that you meet the qualifications, you may qualify for the Foreign Earned Income Exclusion. SEE BELOW:
If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation ($92,900 for 2011, $95,100 for 2012, $97,600 for 2013, $99,200 for 2014 and $100,800 for 2015). In addition, you can exclude or deduct certain foreign housing amounts.
To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income, your tax home must be in a foreign country, and you must be one of the following:
A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
REFERENCE SOURCE:
http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion---Requirements
You claim the Foreign Earned Income Exclusion by completing the Form 2555.
Link to Form 2555/instructions:
http://www.irs.gov/pub/irs-pdf/f2555.pdf
http://www.irs.gov/pub/irs-pdf/i2555.pdf
If you do not qualify to claim the Foreign Earned Income Exclsuion, you may qualify to claim the Foreign Tax Credit. You claim the foreign tax credit by completing the Form 1116.
Link to Form 1116/instructions:
http://www.irs.gov/pub/irs-pdf/f1116.pdf
http://www.irs.gov/pub/irs-pdf/i1116.pdf
New York liability is based upon your federal adjusted gross income (AGI) as the basis for their state income taxes. To the degree the foreign earned income exclusion applies, it will reduce your New York tax basis as well.
Let me know if you require further assistance with this matter.