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Topic: Form confusion - part US, part UK tax year  (Read 466 times)

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Form confusion - part US, part UK tax year
« on: March 30, 2017, 01:51:18 PM »
Hello,

I am having a really hard time understanding which forms we'll need to complete for our US taxes this year. Here's our situation:

I am US/UK dual citizen
Husband is UK citizen who had green card until recently
We lived in Ohio from 2011-early April 2016
In April 2016, we permanently relocated back to UK and have been earning solely UK income since May

For the 2016 tax year, we earned US income just from Jan-March. We are both on fairly low paid jobs.

When it was just me filling in income tax and living outside US previously, I used to file the Foreign Earned Income Exclusion, but I'm afraid this time we can't do that because I don't think we pass the Bona Fide Residence or Physical Presence tests.  Is there another form we'd need to file instead? Surely we can't have to pay the US tax on our already taxed UK income because of our timing moving back...can we?

If there is another way I should be reporting our UK income/tax on another form I haven't heard of, I'd be so grateful for any tips!


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Re: Form confusion - part US, part UK tax year
« Reply #1 on: March 30, 2017, 09:43:15 PM »
If your husband abandoned or revoked his green card he will be filing a dual status return.  He may also need to file Form 8854.

You have a choice of electing to claim the foreign earned income exclusion or not electing to claim the foreign earned income exclusion. In my experience, not electing to claim the foreign earned income exclusion frequently produces the optimum result.


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Re: Form confusion - part US, part UK tax year
« Reply #2 on: April 07, 2017, 07:59:43 PM »
The Physical Presence test allows for people in your circumstances who moved abroad from the US mid year. If you spent 330 days outside the US in the 365 day period after you moved abroad, you can still claim the Foreign Earned Income Exclusion to exclude your income after you moved to the UK last year.

Good luck!


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Re: Form confusion - part US, part UK tax year
« Reply #3 on: April 07, 2017, 08:18:43 PM »
Electing to claim the foreign earned income exclusion may not produce the optimum result...


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