Taxes, part the first

[julesjones]

First draft of my US tax return for the writing business done. Though only Schedule C, not the Self-Employment Taxes form (sigh). Yes, this year I have made sufficient money that try as I might, I cannot find enough legitimate expenses to avoid the horror that is having to pay social security taxes for a system I am not allowed to claim any benefit from. Those of you who are American may thank me for my generous contribution to your retirement fund. I don't suppose I can complain too much about having made enough money from my writing to be liable for SS contributions.

Tomorrow the numbers get fed into Other Half's computer, that it may crunch them and add them to the joint filing. Then I will get to see if I need any *other* forms.

And then in a couple of months we will probably have to do it all over again, only for the UK Revenue. Oh joy. I may spend part of Eastercon whining about this. You have been warned.

Comments

[j-cheney.livejournal.com]

Thanks for sharing the wealth ;o)

[tharain.livejournal.com]

My decrepitude thanks you.

[dsgood.livejournal.com]

I did some googling for information on noncitizens and Social Security. Ran into two problems: 1) the easily available information assumes that the noncitizen is an employee in the US (or a member of the Armed Forces.) Self-employment income isn't addressed.

2) Some non-governmental sites are focused on the billions and billions of illegal Mexican immigrants who will be able to get Social Security payments.

[julesjones]

Being slightly more serious, I simply fall into one of the non-standard areas -- Green Card holder resident overseas, self-employed (as a Green Card holder I'm treated like a citizen for most tax purposes, which means I have to file a return and pay US taxes regardless of where I'm currently living). In theory I should get credits for pension rights, but it's not entirely clear what happens if/when my Green Card expires, which it is quite likely to do before I can accumulate the minimum number of credits to qualify for the pension.

[kalypso-v.livejournal.com]

You mean they can go on asking for your money even if you're not a citizen and don't live there any more?

[julesjones]

Very much so if you are a Green Card holder, though there is a tax treaty between the UK and the US which means that you effectively only have to pay tax once. Whatever we pay to the UK can be set off against US taxes (or vice versa, depending on which way round we do it).

US citizens are obliged to file a US tax return and pay US taxes no matter where they're living, and Green Card holders are treated as citizens in this respect for some years after leaving, which I think is actually fair enough in most circumstances. Green Carders get almost all of the privileges of citizenship, so this specific obligation in return isn't unreasonable, especially if you are actually maintaining a connection with the US. If we do move back I'll still have access to benefits based on my previous SS record. I just don't have any useful access to most of the benefits for now.

[desperance.livejournal.com]

If you need an accountant in the UK who's strong on writerly issues, let me know...

[julesjones]

Thanks. if it gets too difficult, I will take you up on that.

That dam tax treaty

[lordpomposo.livejournal.com]

Jules, it won't affect you this year, but watch that UK/US tax treaty in future. Gordon Brown and Darling are trying to grab more dough from American citizens living in London, treaty or no treaty. The typical response to such heavy handedness is retaliation, i.e. give the Brits living in the US the works. Not to worry: the rest of us will vote McCain in. He will roar forth with an amnesty program. Then all you have to do is visit Mexico, swim across the Rio Grande, dodging drug smugglers etc. come ashore, and grab one of Big John's proposed Z-visas. No more green cards needed, and you can get Social Security. This last is like an invitation to join the LUSITANIA on her 7 May 1915 voyage, but what the hell. If they're going to make you cough up, you at least deserve a spot in the lifeboat.

Skyward ho!
Lord Pomposo