RA Returns Home
Posted: 30-Dec-2015 12:22pm
So, a good friend of mine lost his battle with cancer this week.
His widow is a UK citizen, long term green card holder. She is going to return to the UK permanently sometime in 2016.
I've never met her, he prepared his own taxes and I don't expect her to ask me for tax advice which I would freely give if she did ask. This is my understanding of what she will need to do:
1) Go to the local IRS office and they will help her file a 1040-C to get a sailing permit.
2) Send a W8BEN to his (now her) traditional IRA trustee and attempt to waive the 30% withholding by citing the US/UK tax treaty article 17.
3) Send a W8BEN to his municipal pension administrator and attempt to waive the 30% withholding by citing the US/UK tax treaty article 19.
4) Change of address and bank info with SS office.
5) Find a tax pro in the UK to help file the 2016 1040 along with forms 8833 and 8854.
6) Turn in her green card or just let it lapse.
Best case, the 2016 return will be her final US return. Worse case, there is withholding and she has to file 1040NR's for the rest of her life. I'm almost certain there will be no exit tax exposure.
Any other good words of wisdom? Thanks.
His widow is a UK citizen, long term green card holder. She is going to return to the UK permanently sometime in 2016.
I've never met her, he prepared his own taxes and I don't expect her to ask me for tax advice which I would freely give if she did ask. This is my understanding of what she will need to do:
1) Go to the local IRS office and they will help her file a 1040-C to get a sailing permit.
2) Send a W8BEN to his (now her) traditional IRA trustee and attempt to waive the 30% withholding by citing the US/UK tax treaty article 17.
3) Send a W8BEN to his municipal pension administrator and attempt to waive the 30% withholding by citing the US/UK tax treaty article 19.
4) Change of address and bank info with SS office.
5) Find a tax pro in the UK to help file the 2016 1040 along with forms 8833 and 8854.
6) Turn in her green card or just let it lapse.
Best case, the 2016 return will be her final US return. Worse case, there is withholding and she has to file 1040NR's for the rest of her life. I'm almost certain there will be no exit tax exposure.
Any other good words of wisdom? Thanks.