B
briandela
Guest
I'm currently working fulltime in Ireland and have been for quiet sometime. However, this September I'll be relocating to the US and taking up employment there. I was just wondering about the tax implications of this here in Ireland on a number of levels.
Firstly, I will have a number of holidays remaining when I finish up in my current job (around 5 weeks of holidays (don't ask!)) and my current employer has agreed to pay these as a lump sum when I finish. I was obviously delighted about this as I wasn't expecting to get any but I have been wondering about the tax implications. As I'm currently earning in the 44% tax bracket my last pay slip will include my normal wages split between 20% and 44% and all of the "lump-sum" of my holidays will be taxed at 44%. At first I did not mind about this as I "knew" I would get the "extra" 24% tax back at the end of the year (and perhaps more) as I would have had €0 income in Ireland for around 3.5 months.
However, I've had some "advice" and "words in the ear" from “knowledgeable” gentlemen over a few pint at the weekend that this is not the case as the revenue would effectively only give me tax credits etc up until the date I leave Ireland and start paying tax in the US... does anybody know if this is the case?
Secondly, with regards to relocating to the US - do I have to make any form of official notification to the revenue of this in order to prevent difficulties when I return to Ireland a few years down the road? Do I have to notify them of non-resident status even though, chances are, I will have no income in Ireland other than interest on savings here (obviously DIRT will be taken from the interest "auto-magically")?
Thirdly, I said "chances are" that I will have no income in Ireland but on the off chance that from time to time I do contract work for my current employer after I have relocated to the US, does this complicate things or is it the case that the fact that I am non-resident means that I simply pay tax on this type of income in the US?
And finally (hopefully), anybody have any advice/horror stories/etc for someone relocating to the US, even advice unrelated to taxation would be welcome!
Thanks in advance,
Brian
Firstly, I will have a number of holidays remaining when I finish up in my current job (around 5 weeks of holidays (don't ask!)) and my current employer has agreed to pay these as a lump sum when I finish. I was obviously delighted about this as I wasn't expecting to get any but I have been wondering about the tax implications. As I'm currently earning in the 44% tax bracket my last pay slip will include my normal wages split between 20% and 44% and all of the "lump-sum" of my holidays will be taxed at 44%. At first I did not mind about this as I "knew" I would get the "extra" 24% tax back at the end of the year (and perhaps more) as I would have had €0 income in Ireland for around 3.5 months.
However, I've had some "advice" and "words in the ear" from “knowledgeable” gentlemen over a few pint at the weekend that this is not the case as the revenue would effectively only give me tax credits etc up until the date I leave Ireland and start paying tax in the US... does anybody know if this is the case?
Secondly, with regards to relocating to the US - do I have to make any form of official notification to the revenue of this in order to prevent difficulties when I return to Ireland a few years down the road? Do I have to notify them of non-resident status even though, chances are, I will have no income in Ireland other than interest on savings here (obviously DIRT will be taken from the interest "auto-magically")?
Thirdly, I said "chances are" that I will have no income in Ireland but on the off chance that from time to time I do contract work for my current employer after I have relocated to the US, does this complicate things or is it the case that the fact that I am non-resident means that I simply pay tax on this type of income in the US?
And finally (hopefully), anybody have any advice/horror stories/etc for someone relocating to the US, even advice unrelated to taxation would be welcome!
Thanks in advance,
Brian