Hi,
I'm hoping for help from someone here about the Streamlined Foreign Offshore process. I was totally unaware and I feel like an idiot for not realising that I need to submit my US tax return every year. An expat friend first made me aware when she asked me when I was submitting my tax returns (hint: it had never occurred to me). I'm now frantically working through my tax forms and drilling into the IRS website to get the job done. I've just innocently renewed my passport so now I'm hyper aware they might look at my total delinquent tax history.
I moved to the UK 13 years ago when I married my husband, a UK citizen. He works for a not-for-profit making £23,000 a year before UK taxes and I'm a stay-at-home mom with a toddler. We have no savings, one joint bank account and own our home which we bought about 9 years ago.
I know I need to fill in the appropriate 1040 forms, the form for 3 previous tax years (2019, 2018, 2017) and form 8965 for each one of these and the 6 years of FBAR just for good measure.
1. Do I need to fill in form 1040 Schedule B? I've heard of this but no idea why it matters.
2. How do I go about acknowledging my husband's income for tax purposes? He doesn't know a thing about US taxes but all the income is from his employment wages.
3. I know about form 2555 (FEIE) but how does this differ from form 1116? It's so difficult to know which one is better for our situation!
4. We already receive a child's tax credit for our daughter here in the UK. Does that change anything for our US taxes?
5. How can I find what the exchange rates for each year of tax? Do I need to use this year's exchange rate for all of them or go back and use the exchange rate at the time the tax return was due? How can I find the tax rates for the FBARS (I realised this needs to be paid in US currency)?
5. Are there any forms I might have missed?
Obviously I'm planning to get into compliance and never planning to have this happen again!! Any help would be so much appreciated, thank you!