Author Topic: First time doing foreign taxes  (Read 273 times)

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Offline Eh127929

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First time doing foreign taxes
« on: March 07, 2017, 07:50:56 AM »
Hi guys,

I know there's probably a million threads for this, but I was struggling to find one. In the chaos of my life I haven't even given taxes a thought until now.

This is my first year filing U.S. taxes in the U.K. Whilst working in the U.K. I filed American last year, but I hadn't had a job yet so it was easy.

My question is where do I begin? My taxes should be straight forward..I have had two jobs in the U.K. One for four months, and my current one. I pay student loans in America still, and have a few saving bonds that matured this year (nothing over 500 dollars max).

Do I need to file an extension, or is that automatically given? Is there an only program people use? I still have my American bank account and my mom's name is on it for easy access, so paying for it shouldn't be an issue. Any help would be amazing! I appreciate it!


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Offline Aless

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Re: First time doing foreign taxes
« Reply #1 on: March 07, 2017, 10:49:45 AM »
I found online filing really confusing, or maybe it's just me. I thought it was easier, for a non-complicated situation, to just fill in the paper forms. You should only need the 1040 and the 2555. Fill in the 2555 first, adding together all your UK income for 2016. The student loan interest (they should have sent you a document) and the savings bonds (also would've sent you something) will go on the 1040. All those deductions will result in zero owed :).

Oh you automatically get 2 months extension if you are abroad.
BUNAC: 9/2004 - 12/2004. Student visa: 1/2005 - 7/2005. Student visa #2: 9/2006 - 1/2008. FLR(IGS): 1/2008 - 10/2008. FLR(M): 10/2008 - 10/2010. ILR 10/2010!!

Finn, 25/12/2009; Micah, 10/08/2012

Offline guya

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Re: First time doing foreign taxes
« Reply #2 on: March 09, 2017, 08:35:28 PM »
Hi guys,

I know there's probably a million threads for this, but I was struggling to find one. In the chaos of my life I haven't even given taxes a thought until now.

This is my first year filing U.S. taxes in the U.K. Whilst working in the U.K. I filed American last year, but I hadn't had a job yet so it was easy.

My question is where do I begin? My taxes should be straight forward..I have had two jobs in the U.K. One for four months, and my current one. I pay student loans in America still, and have a few saving bonds that matured this year (nothing over 500 dollars max).

Do I need to file an extension, or is that automatically given? Is there an only program people use? I still have my American bank account and my mom's name is on it for easy access, so paying for it shouldn't be an issue. Any help would be amazing! I appreciate it!


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Probably a 1040, Schedule B, FBAR, 1116, 8812 & 8965...you'll probably get a child tax credit refund...

Offline jj2201

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Re: First time doing foreign taxes
« Reply #3 on: March 10, 2017, 05:25:26 PM »
First point is any US tax due (probably none if you claim the Foreign Earned Income Exclusion or Foreign tax Credit when you file) is still due on April 15th, but as an expat you have until June 15th to file. You can also request a further extension online until October 15th if necessary.

The next question is whether it's better for you to claim the FEIE or Foreign Tax Credit. As a rule of thumb, if you pay more tax in the UK than you'd pay in the US, the Foreign Tax Credit is advantageous, as you can carry forward excess US tax credits for future use.

You might consider contacting an online US expat tax firm for some help - they cost less than most UK-based US tax specialists.

Offline guya

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Re: First time doing foreign taxes
« Reply #4 on: March 10, 2017, 07:16:07 PM »
First point is any US tax due (probably none if you claim the Foreign Earned Income Exclusion or Foreign tax Credit when you file) is still due on April 15th, but as an expat you have until June 15th to file. You can also request a further extension online until October 15th if necessary.

The next question is whether it's better for you to claim the FEIE or Foreign Tax Credit. As a rule of thumb, if you pay more tax in the UK than you'd pay in the US, the Foreign Tax Credit is advantageous, as you can carry forward excess US tax credits for future use.

You might consider contacting an online US expat tax firm for some help - they cost less than most UK-based US tax specialists.
But it is a criminal offense in the UK to offer tax advice unless the provider is supervised for anti-money laundering purposes. A random online firm that claims to be in the United States might actually be in Russia or China or elsewhere and may not even be qualified to advise on tax. Get a personal recommendation should you decide you need professional advice.

Offline Eh127929

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Re: First time doing foreign taxes
« Reply #5 on: March 10, 2017, 08:02:07 PM »
Yikes, sounds a bit more complicated than I had thought. Thanks guys x


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