ukbalaji[at]gmail.com wrote:

- quote -

This must be my day for confusion. On one hand you say you
used to have a work permit visa for the US. This tells me
that you are not a US citizen or a lawful permanent resident
of the US. Then you tell us that you were a US expat living
in the UK. This is impossible as you were never a US
citizen, so how could you be a US expatriate? Expatriation
by definition means a loss of nationality. Then you say your
company filed US taxes for you? Why? If you were not a US
citizen and you were living and working in the UK what was
the reason to file US tax returns? Then you say, you
localized to the UK. What does that mean?

I am going to guess: You were a citizen or resident of
Country A who came to the US to work on a temporary work
visa. Based on the days of presence, you became a resident
alien for tax purposes and filed US tax returns. Then at
some point, you departed the US and set up shop in the UK
where you are either a resident or citizen. As such, you
are now a nonresident alien of the US and probably a taxable
resident of the UK. You are now asking whether you are
required to file a nonresident alien tax return in the US.

As a nonresident alien with no physical presence in the US
and no effectively connected income to a US business or
trade the only taxable income you appear to have would be
dividends being thrown off from those brokerage accounts or
Vanguard mutual funds. Any non-bank or non-savings account
interest would also be subject to tax. Any qualified
distribution from a Roth IRA is not subject to tax (it is
also not subject to tax by the UK). Any capital gains from
the buying and selling of securities in your brokerage or
Vanguard accounts is not subject to US tax. As a nonresident
alien if you have income subject to tax, you must file a tax
return. There is no filing threshold like there is for a
resident or citizen. You are subject to the not effectively
connected tax rate of 30% on the taxable investment income
unless the tax treaty with the UK specifies a lower rate.
You can look that up in IRS Pub 901.

If you take a disqualified distribution from a Roth IRA and
some part of that distribution is taxable (not a return of
any contribution for example) then that income is
effectively connected income taxable at graduated rates on
the tax return. If there is an early withdrawal penalty,
that also goes on the US tax return.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

B,

- quote -

Since you are not a US citizen, a resident alien or have a
green card, then you are a nonresident alien that had US
sourced income.

If you are required to file a tax return, you would need to
file Form 1040NR to report any US source income. The return
is filed with the IRS Service Center in Philadelphia.

Since your income is less than $5000, then generally you are
not required to file a tax return since your standard
deduction ($5000 if single) and your personal exemption
($3,200 for 2005) amounts are more than your income amount
of $5000.

However, you are required to file under certain situations,
for example, you were self-employed and had more than $400
of self-employment income.

Also, if you had any taxes withheld from any of your income
sources, then you need to file to get a refund of those
withheld taxes (since your income is below $8,200, your
income tax and total tax is probably zero).

- quote -

You need to read the US-UK tax treaty and find out if any
provisions in it apply to you.

http://www.irs.gov/businesses/intern...=96739,00.html

- quote -

I don't see why not.

Rudy
www.LizcanoTaxServicesLLC.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I am in an unusual situation and hope to get some replies
from knowledgeable people here.

I used to be on work permit visa in the U.S and filed U.S taxes for
years. Until Dec 31 2004, I was a U.S expat living in the U.K and my
company used to file my U.S taxes for me. Effective Jan 1 2005, I
localized to the U.K.

The interesting thing is : I dont have a U.S green card nor
am I a U.S citizen. But I have funds in the U.S : My bank
accounts, online stock trading accounts, Vanguard, Roth IRAs
etc. I used to live in the U.S for several years on my visa.
It so happens that my income in 2005 from all these sources
is small : less than 5K, so I am well below the US tax
minimum.

Should I file U.S tax for 2005? Am I even legally allowed to
file U.S tax return for 2005, since I dont even have a visa
to enter the country now?

Alternatively, should I declare this income in the U.K? U.K
law says if I dont move funds into the UK I dont need to
declare it. So in a sense I am getting away scot free by not
paying tax on my US bank interest, Vanguard dividends etc.

My last question : Am I even legally allowed to keep these
funds in the U.S now, since there seems to be no way to pay
tax on this. I hope the law does not require me to close all
my accounts in the US and move them elsewhere. By the way, I
am a U.K permanent resident and will hopefully get my
British passport next year, if that helps at all.

Thanks and look forward to your responses.

- B

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >