Discussion
Does anyone out there understand US Taxation?
Been staring pretty blankly at the notes for a W-7 and a W-8BEN for a couple of days - something useful on the interwebbie might help me get it right!!!
My blurry impression is that you need a tax number (which is what the W-7 is for, I think) to get someone in the US to pay you for services/goods and that it's possible that they withhold the rightful amount of tax to the IRS (a bit like our PAYE?).
I gather that I can call myself an alien....
...which seems pretty
Been staring pretty blankly at the notes for a W-7 and a W-8BEN for a couple of days - something useful on the interwebbie might help me get it right!!!
My blurry impression is that you need a tax number (which is what the W-7 is for, I think) to get someone in the US to pay you for services/goods and that it's possible that they withhold the rightful amount of tax to the IRS (a bit like our PAYE?).
I gather that I can call myself an alien....
...which seems pretty
Go and speak to H&R Block 
Its difficult and varies state to state.
One form is federal and one state I think.
The taxation system works slightly differently in the US as there is no PAYE. Your deductions are actually withholdings (that you can keep yourself and earn 12 months interest on if you like) then at the end of the year your tax is assessed and your 'fund' pays the bill. If there is a shortfall you pay the difference, if its over (as is almost always the case) you get a refund.
Remember as well, that as a Brit, if you are in the US less than 180 days in a given year, its tax free...
Its difficult and varies state to state.
One form is federal and one state I think.
The taxation system works slightly differently in the US as there is no PAYE. Your deductions are actually withholdings (that you can keep yourself and earn 12 months interest on if you like) then at the end of the year your tax is assessed and your 'fund' pays the bill. If there is a shortfall you pay the difference, if its over (as is almost always the case) you get a refund.
Remember as well, that as a Brit, if you are in the US less than 180 days in a given year, its tax free...
Thanks, Mr P.
HR - what!? as in Human Resources? I think I sacked them one day when I discovered they were neither humane nor resourceful...
But I think I've found out that I can get some help at the US embassy - we'll try that anyway....
>> Edited by beano500 on Tuesday 17th May 13:25
HR - what!? as in Human Resources? I think I sacked them one day when I discovered they were neither humane nor resourceful...
But I think I've found out that I can get some help at the US embassy - we'll try that anyway....
Plotloss said:That sounds quite....well "sane" actually!
Your deductions are actually withholdings (that you can keep yourself and earn 12 months interest on if you like) then at the end of the year your tax is assessed and your 'fund' pays the bill. If there is a shortfall you pay the difference, if its over (as is almost always the case) you get a refund.
>> Edited by beano500 on Tuesday 17th May 13:25
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