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I am a us citizen and will be working for a guernsey based…

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I am a us...

I am a us citizen and will be working for a guernsey based partnership. i will be based in the US but will travel to guernsey multiple times a quarter for compliance purposes. I understand that Guernsey doesn't tax income. ? True for US as well as UK citizens? I have to report income and pay taxes on that income in the US. A. What about Social Security taxes? who pays?

Accountant's Assistant: Which tax year is this for?

2018 and going forward

Accountant's Assistant: Anything else you want the Accountant to know before I connect you?

Is this accountant also familiar with the regulations with respect to carried interest taxes? I believe the UK tax authorities tax capital gains at 20%, whereas the US taxes such at I believe 15%. Would I get credit for taxes paid to the UK, or am Iiable to the pay taxes to the UK as a non-citizen working in Guernsey?

Submitted: 2 months ago.Category: Tax
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6/1/2018
Tax Professional: Barbara, Enrolled Agent replied 2 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,674
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

As a US citizen, you are required to report and pay tax on your WORLDWIDE income of whatever nature.

Because the Guernsey partnership will not be withholding US taxes, you will be responsible to pay US income tax as well as FICA (Social Security and Medicare).

If UK taxes are withheld, you will receive a credit on your US tax return for any taxes withheld, and will use Form 1116 to claim the credit.

https://www.irs.gov/forms-pubs/about-form-1116

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Customer reply replied 2 months ago
barbara. there are parts to my question that you did not answer .
with respect to fica, (a) am i responsible for the employer's and employee share or just the employee share.can you confirm whether guernsey will tax my earni gs? and can you address the carried interest capital gains i will have to pay to the US, UK, and/or Guernsey?
Tax Professional: Barbara, Enrolled Agent replied 2 months ago

I apologize if I was not clear in my response.

The foreign company has no responsibility to pay FICA, but you are only responsible for your share.

I am not familiar with Guernsey and UK taxation.

As to the US taxation, as I mentioned, as a US citizen, you are required to report and pay tax on your WORLDWIDE income of whatever nature and from whatever source. You can claim a credit for any taxes paid to a foreign country on your US tax return.

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