Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

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

Customer Question
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: 19 days ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 hours by:
6/1/2018
Tax Professional: Barbara, Enrolled Agent replied 19 days ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,150
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

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

Ask Your Own Tax Question
Customer reply replied 18 days 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 18 days 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.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,150
6,150 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Is FICA and medicare considered part of federal income tax?
is FICA and medicare considered part of federal income tax? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,043 satisfied customers
Capital gains tax on nonresident alien. A foreign trust owns
Capital gains tax on nonresident alien. A foreign trust owns 100% of shares of a US C corporation. C corporation is privately held (not publicly traded) and conducts business in the US. Then C corpora… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
The federal government gives you a tax credit for foreign
The federal government gives you a tax credit for foreign taxes paid in another country Does New York State offer a tax credit for the same If yes , where would it be found, on what form… read more
Barbara
Barbara
Enrolled Agent
6,150 satisfied customers
IRS tax question: Say my income before capital gains is
IRS tax question: Say my income before capital gains is $400,000 and after capital gains is $250,000, do the capital gains get 20% treatment and the rest of the income get the lower treatment from $0-… read more
Barbara
Barbara
Enrolled Agent
6,150 satisfied customers
Lev. I have a question regarding line 2 of Form 1116 for
Hi Lev. I have a question regarding line 2 of Form 1116 for expenses definitely related to passive rental income. On a year in which the depreciation and other expenses exceed the total income - and t… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
May I have a question of foreign tax credit calculation,
May I have a question of foreign tax credit calculation, pls?If a individual has $20,000 foreign general income, $500 foreign passive (interest) income and $1000 foreign capital loss. The foreign tax … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Wanted to know about foreign tax. I filed tax return in
I filed tax return in India do I need to show India income in fbar form only or do I need to pay tax of foreign income … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Should US company withhold income tax to US budget if
Should US company withhold income tax to US budget if employee (person who is in payroll) is non-resident?… read more
Barbara
Barbara
Enrolled Agent
6,150 satisfied customers
Should US company withhold income tax when paying to
Should US company withhold income tax when paying to Individual person (who is not employee, not in payroll) if : the person is non resident of US and is not located in US AND the person renders softw… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Are social security tax and medicare tax withheld taken as
Are social security tax and medicare tax withheld taken as Payments in form 1040 ? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a capital gains taxation question, federal and state
I have a capital gains taxation question, federal and state of california … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Iowa Income Tax. Is 100% of capital gains on the sale of a
Iowa Income Tax. Is 100% of capital gains on the sale of a rental property deductible if the requirement is met for hours spent for management of the property? … read more
Barbara
Barbara
Enrolled Agent
6,150 satisfied customers
Tax Experts - Foreign partner US LLC partnership had one
Tax Experts - Foreign partnerUS LLC partnership had one foreign partner (42.50%) from Italy. In order to get k-1 and pay taxes, foreign partner applied for federal ID which was used by US LLC to repor… read more
taxmanrog
taxmanrog
Master\u0027s Degree
968 satisfied customers
I received a withholding compliance letter, but i don't know
Dear Dr. Chen, I received a withholding compliance letter, but i don't know why. I always have tax return instead of owing IRS money. What is the possible reason? Could it be late filling? If it's due… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,043 satisfied customers
Does a US domestic partnership that has foreign partners and
does a US domestic partnership that has foreign partners and sustained a loss in 2017 have to file any IRS forms on behalf of the foreign partners. I know the partnership has to file Form 1065 but are… read more
Barbara
Barbara
Enrolled Agent
6,150 satisfied customers
I was just wondering about the withholding compliance
I was just wondering about the withholding compliance program. I was placed on the withholding compliance program through my employer 1 year ago due to an error, I submitted a new tax exemption form, … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I received a withholding compliance letter today and it has
I received a withholding compliance letter today and it has me concerned … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,043 satisfied customers
My question is about taxation of capital gains on equities,
Hello, My question is about taxation of capital gains on equities, like stocks, options, futures of F1 students. Here the facts:1. F1 student for 4 years in the US2. student does not get any income wi… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,366 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x