Working in the US - But paying tax in Ireland - Can i claim back Tax from Ireland

[ABrady]

Hi Guys,

I have been checking other posts about this, and want to try and clear some things up.

I have moved to the US since November 2010 for my company, and I am due to return to Ireland early 2012. Am I correct in saying, that makes me non-resident for 2011 and should apply for a split year relief.

And in doing so I can only claim back the PAYE portion as I would want to keep the PRSI (stamps). And then I would have to file a tax return in the US.

So if that is correct should my employer have informed me of that.
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After receiveng information on forms to be filled in the US for tax returns, although i was never told about the split year relief. Is it possible for the company to enforce a tax equalization clause, so that they can claim back any difference in tax so that the employee is no better off. How can they do this once it is your gross wage.

 

[Domo]

This is a complex situation, and your employer should have taken advice on seconding you to work abroad.
Has your employer tax equalised or tax protected you?
Is your employer operating US withholdings on your salary?
Are you payinr real Irish tax or notional Irish tax?
You should in the first instance clarify the position with your HR department, and then if necessary take professional advice.

www.taxingtimes.ie

 

[Domo]

Sorry, I have just noticed the bottom of your post.
It would seem that you are tax equalised and have agreed to this.

If you are tax equalised, you should receive the same net pay as agreed, and your employer will pay all US and Irish tax as required, and therefore you will not receive any advantage to split year relief.