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

  • Similar/neardupe money.stackexchange.com/questions/101749/… Nov 30 '18 at 16:26
  • As the spouse of an EU citizen who lives in the UK, you do not require a visa to live and work legally in the UK. You will want to register for "settled" status or "pre-settled status," as appropriate, to continue to be able to live and work in the UK after it leaves the EU.
    – phoog
    Feb 11 '19 at 20:12

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.

  • 1
    If he keeps his accounts in pounds he can use the yearly average exchange rate when filing. irs.gov/individuals/international-taxpayers/… Nov 29 '18 at 3:59
  • Why the restriction on "living in the United States"
    – DJohnM
    Nov 29 '18 at 5:12
  • 1
    I would argue that since he lives in the UK and his primary income is from UK work that he needs to pay his taxes in the UK first and foremost. That being said OP should look at the US/UK tax treaty designed to avoid double taxation in situations like this.
    – Leon
    Nov 29 '18 at 7:11
  • For my contracting work, I receive US dollars which goes into my US bank account. My UK job pays me in GBP, which goes into my UK bank account. I have been working in the UK since September.
    – kd7331
    Nov 29 '18 at 9:07
  • To be clear, the foreign tax credit (or deduction) is available to both residents living in US with taxable foreign income that was subject to foreign tax and citizens living abroad with foreign income that was not excluded by FEIE (e.g. over the limit, or not living in a single place, or unearned) and was subject to foreign tax. Nov 30 '18 at 16:29

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