Tuesday, August 24, 2010

Do I have to pay US tax on my British husband's income if it is wired to a US bank account?

My husband is a British citizen, residing in the UK. He is self-employed. Can the companies he works for wire transfer his fees to our joint US account? Will I have to pay US tax on that money? It is sometimes thousands of dollarsDo I have to pay US tax on my British husband's income if it is wired to a US bank account?
As a general rule, if your husband is not a US resident alien for tax purposes and he does not make an election to be treated as one in order to file a joint return with you, his UK income is not subject to US income tax.





That said, the movement of money into and out of your joint account could give the perception of income. He should keep good records to be able to show the source of that money.Do I have to pay US tax on my British husband's income if it is wired to a US bank account?
The U.S. will not tax that money. If he were a citizen of the states living in another country or citizen of another country living here they could all of that money. You can also file in such circumstances form 1116 which is a credit for foreign taxes already paid on income.

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