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H1B: Do I owe Ireland any tax?

  • 21-10-2014 5:03am
    #1
    Registered Users, Registered Users 2 Posts: 251 ✭✭


    Hi all,

    I've just started working in California on an H1B. I worked full time in Dublin from January to mid-August. I know that this year in the states I am considered a non-resident alien for tax purposes. My questions are:
    1. Do I have to tell the Irish government I've left?
    2. Do I owe them some tax on my income here for this year?

    Any help appreciated. Couldn't find anything online.


Comments

  • Closed Accounts Posts: 3,780 ✭✭✭Frank Lee Midere


    Hi all,

    I've just started working in California on an H1B. I worked full time in Dublin from January to mid-August. I know that this year in the states I am considered a non-resident alien for tax purposes. My questions are:
    1. Do I have to tell the Irish government I've left?
    2. Do I owe them some tax on my income here for this year?

    Any help appreciated. Couldn't find anything online.

    I think you can tell revenue you left
    You might have overpaid revenue as they would have taken money per month assuming you were going to earn 12 months x each month.


  • Registered Users, Registered Users 2 Posts: 1,230 ✭✭✭spideog7


    Hi all,

    I've just started working in California on an H1B. I worked full time in Dublin from January to mid-August. I know that this year in the states I am considered a non-resident alien for tax purposes. My questions are:
    1. Do I have to tell the Irish government I've left?
    2. Do I owe them some tax on my income here for this year?

    Any help appreciated. Couldn't find anything online.

    You don't have to tell them you've left, you were an Irish tax resident for this year. You may have to declare your US income in Ireland and your Irish income on your US return but there are tax agreements in place that should cover you from actually having to pay taxes on it in both countries.

    I've never actually had income in both countries in the same year but my understanding was that this is how is dealt with.


  • Registered Users, Registered Users 2 Posts: 440 ✭✭biddywiddy


    spideog7 wrote: »
    You don't have to tell them you've left, you were an Irish tax resident for this year. You may have to declare your US income in Ireland and your Irish income on your US return but there are tax agreements in place that should cover you from actually having to pay taxes on it in both countries.

    I've never actually had income in both countries in the same year but my understanding was that this is how is dealt with.

    I'm on a J-1 visa, and thus non-resident in the US for tax purposes. I only had to list US income on my US tax return. My Irish income, before we moved, was not needed for the tax return.

    My OH is a US resident for tax purposes. Last year, he earned in Ireland (before we moved) and in the US. He had to list his Irish earnings on his US tax return, but the tax already paid in Ireland was sufficient, and he did not have to pay again here. At least, this is my understanding. There are a lot of calculations and forms to figure this out.

    We both recently requested a 2013 P21 balancing statement from Irish Revenue. We had both overpaid tax in Ireland (as we only worked part of 2013 there) and we were both due a refund. Worth doing!


  • Registered Users, Registered Users 2 Posts: 1,230 ✭✭✭spideog7


    biddywiddy wrote: »
    I'm on a J-1 visa, and thus non-resident in the US for tax purposes. I only had to list US income on my US tax return. My Irish income, before we moved, was not needed for the tax return.

    My OH is a US resident for tax purposes. Last year, he earned in Ireland (before we moved) and in the US. He had to list his Irish earnings on his US tax return, but the tax already paid in Ireland was sufficient, and he did not have to pay again here. At least, this is my understanding. There are a lot of calculations and forms to figure this out.

    We both recently requested a 2013 P21 balancing statement from Irish Revenue. We had both overpaid tax in Ireland (as we only worked part of 2013 there) and we were both due a refund. Worth doing!

    You're likely correct, in that it goes by where you are tax resident. In that case the OP should declare their US income to the revenue but shouldn't be liable to tax on it due to the Double Taxation Agreement in place.


  • Closed Accounts Posts: 3,780 ✭✭✭Frank Lee Midere


    The OP is asking does he owe Ireland any tax. Not the us. He doesn't if he was in the PAYE sector and might actually be due a refund. Probably is.


    He doesn't have to tell revenue about American taxes. Irish revenue is residency based not like the US passport base.


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  • Registered Users, Registered Users 2 Posts: 251 ✭✭Shankly Gates


    OK that makes sense. I was PAYE so I should be due a refund. Thanks folks


  • Registered Users, Registered Users 2 Posts: 1,230 ✭✭✭spideog7


    He doesn't have to tell revenue about American taxes. Irish revenue is residency based not like the US passport base.

    But since he is an Irish tax resident for 2014 wouldn't he need to declare all earned income for 2014 regardless of where it was earned?

    I agree he won't owe anything but that doesn't mean it shouldn't be declared.


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