What happens if USC dies with a UKC spouse

Obviously not a fun topic, but recent events have made me realise I should know these things. 

Hoping @goya sees this.  If you do, please PM, I'd be interested in talking to you about setting the right things up.

My husband (UKC) and I (dual) have two children, aged 8 and 5.  I have all the information for Social Security Survivor Benefits and what my husband needs to do to claim. 

My new questions are around filing taxes.  I would imagine that by receiving Social Security payments, my husband would need to file taxes.  Would he need to get a ITIN?  With taxes, would he be able to claim the additional tax credits for the children as I do currently?

My other question is around FBARs.  Our kids accounts are under $10,000 and probably easiest to keep it that way.  But again, is this something he would need to do while the kids are minors?

I'll be reaching out to a few reputable firms but thought this is good information to have here.  Hopefully it's never needed!

Interesting query.

As a dual US/UK citizen married to a Brit and living in the UK, I'm hoping to relinquish my US citizenship before I pop my cogs so my Brit wife doesn't have to worry about such matters.

But if I fail to relinquish before that time, I've left instructions to seek guidance from a tax advisor (as I know she wouldn't have the first clue on what to do).

I don’t know if he will need a TIN to start receiving SS, but probably yes since the SSA has to produce a report for the recipient each year with a copy to the IRS. (SSA-1099). However since SS is taxable only in the UK to a UK resident he should not have to file a tax return since his taxable income will be zero. My wife is now receiving her SS income and on our joint IRS return we report on the appropriate line 6a on the 1040 but the taxable amount on line 6b is shown as zero.

This last couple of years our son, who lives here and is a dual citizen, has wanted to qualify for the Covid stimulus payments but TurboTax would not allow him to file a return with zero income as he excludes all his UK salary with the Foreign Earned Income Exemption and he has no other income from anywhere. So I got him to make up some interest of $5 from his UK bank just so TurboTax would file the report even he had no US taxes to pay as $5 is well below the personal allowance but it worked in that the IRS knew he he was filing taxes and he got all the stimulus payments.

You definitely  need to consult a tax advisor on your husband’s situation and it is very good that you thinking ahead like this.

An ITIN would be needed for SS, although as durhamlad mentioned there would be no US tax payable to a U.K. resident. I’d look for a company that you can engage with at this time. A pre-existing  relationship would then be formed, that maybe then carried over for the future. Everything sorted out in advance…

Maybe contact the FBU at the embassy?  Impossible by phone but very responsive to emails and if necessary they would then set up a phone conversation with you.  I think they’d be the place to start as I’m sure they’ve heard this all before.  Good luck.

Maybe contact the FBU at the embassy?  Impossible by phone but very responsive to emails and if necessary they would then set up a phone conversation with you.  I think they’d be the place to start as I’m sure they’ve heard this all before.  Good luck.

That is a great idea. We have had great success using the FBU website to send queries. It takes a few weeks to get a reply or a phone call but still good for questions like this.

I think I'll do that (email the embassy).  There is a tax professional that works with a few friends, but I hate to ask these questions without having given her business myself.  I'll likely engage her come January and possibly have her do my taxes for me just to have an established relationship.

You can contact the FBU them using their online form, regular mail or by phone.

https://uk.usembassy.gov/u-s-citizen-services/federal-benefits/contacting-the-london-federal-benefits-unit/

https://uk.usembassy.gov/u-s-citizen-services/federal-benefits/fbu_email_enquiry/

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