Alan Huntley wrote:

- quote -

First off, you must have meant to say that you have a Soc.
Sec # and not an ITIN. Secondly, if PWC is doing your taxes
why hasn't the issue of your wife's income already been
addressed? If your wife has been with you then you both are
resident aliens of the US for tax purposes. As such you
probably should have filed a joint US return. The US - UK
treaty is primarily a resident based treaty. It states that
interest (Article 11) and pensions (Article 17 assuming its
a private pension) are taxed by the US and not the UK if she
is a resident of the US.

--
Alan
http://taxtopics.net

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I am living and working in the US (Texas) for about 18
months. My wife is accompanyig me. I am on secondment from
a UK based company and my salary is paid free of UK taxes to
me here so I will be paying US taxes. I have an ITIN number
from the IRS and PWC have filled my tax return with the IRS
so (hopefully) my tax is sorted out.

My question is about my wifes UK income (a service pension,
and about 3k p.a of intrest on some cash savings)should she
be paying tax on her UK income?

They are obviously UK sourced income, but is there a way of
getting them out from the taxmans reach. I have considered
moving the savings off-shore but we will be returning to the
UK permantly in May 2004 so I think we have missed the boat
as far as that goes.

Any thoughts would be appreciated.

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