How do we file US taxes in the UK? Please HELP!!!!

Hi,

My wife moved her from the USA November 2013 and we're struggling to work out how to file her US taxes here. We we're wondering if anyone could tell us exactly what forms we need to do including any information about the FBAR form and filing that as the IRS website isnt very clear and we just get a automated answer when we phone. I'am in the RAF and currently my wife is unemployed.

Also do I need a ITIN number? And we know we need to do the change of address form (Form 8822) but we not to sure if the first question on the form is applicable, is Forms 1040, 1040A, 1040EZ, 1040NR just used for filing taxes normally in the US?

Any help would be greatly apreciated

Many Thanks

Stuart

Did your wife work in the US in 2013? Since you said she is unemployed, I assume she has no UK income - worldwide income must be declared, but having none means a simpler return. I'm also assuming that you are not a US citizen or green card holder, and have no US-source income.

Your wife will likely file as "married filing separately" unless she has children or other dependents. If you have no US-source income she can take normally an exemption for you, but you would need to have an ITIN. See http://www.irs.gov/Individuals/General-ITIN-Information.

Which forms depends on income - 1040 (rather than 1040 EZ) is always a safe bet with schedules as appropriate. You really don't need to file a change of address since her move was late in 2013 - just use the UK address on the return you are filing for 2013. If her US income was just from employment and interest, the return won't look any different than it ever did. If she has interest income from accounts in the UK, that has to be declared.

A FBAR must be filed if the aggregate value of any/all financial accounts exceeds $10K at any point in the calendar year. She must be an account holder or have signature authority. If you have a separate account in your name only, that won't need to be declared. The FBAR is filed on-line, and that must be done by June 30; it's not something that's a part of the tax return.

Some have used TurboTax, but that doesn't work for me so we paper file. The return isn't due until June 15, but any tax due must be paid by April 15.

Without knowing specifics about income sources, that's about all I can say - and I am not a professional - just another taxpayer. Someone else may jump in with a correction. or clarification.

My wife did work in the US til the end of Oct 2013 so we know filing is a must. Do I need an ITIN prior to her filing?? And the filing of taxes with our current UK address should cover her for the address change and no further address change forms are necessary?

Thanks!

Also say our credit card account limit is up to $10k would that make the FBAR applicable to us? If the interest on her savings account is minimal.. say a couple pound do we need to declare that?

Also say our credit card account limit is up to $10k would that make the FBAR applicable to us? If the interest on her savings account is minimal.. say a couple pound do we need to declare that?

It doesn't matter what your credit limit is.  All that matters is the amount of money that she has to her name at any given time-- be it a current account, savings account, or joint account.  A credit limit would technically be a debt, rather than money, and is therefore not applicable.

Hi!

With regards to applying for an ITIN, that is only needed if you want to file jointly. If your wife plans on filing separately, than don't worry about the ITIN.

She may have trouble e-filing due to the automatic checks the system performs (the system will be looking for a SSN or ITIN under spousal information), but try just inputting zeros, as that will sometimes work. It's a bit of a hassle, but it will save you from subjecting your income to US tax.

Hope this helps,

David McKeegan

Per the instructions for the W-7:

Who Must Apply
Any individual who is not eligible to get a SSN but who must
furnish a taxpayer identification number must apply for an ITIN
on Form W-7. Examples include the following.

An alien spouse claimed as an exemption on a U.S. tax return
who is not eligible to get a SSN.

If the OP claims an exemption for her spouse, then an ITIN is definitely required.

okay, so if my wife is filing married but with a seperate return do i need an itin?
yes, correct? due to the fact that i am the spouse of a us citizen?

okay, so if my wife is filing married but with a seperate return do i need an itin?
yes, correct? due to the fact that i am the spouse of a us citizen?

No, not necessarily.

- If she files 'Married, Filing Separately', you do not need an ITIN. But in this case she will not be able to claim any exemptions for you.

- If she wishes to claim exemptions for you, then she will need to file 'Married, Filing Jointly' and you will need an ITIN.

Married filing jointly means income for both the US citizen AND the spouse must be declared - not something I would do. Why add to taxable income if you don't need to do so? This also involves an election to have the NRA spouse treated as a resident alien, and again, there would be few/no advantages to this IMHO.

Check this link for specifics:

http://www.irs.gov/Individuals/International-Taxpayers/Frequently-Asked-Questions-About-International-Individual-Tax-Matters#FilingStatusandDependents

Filing Status and Dependents

1.  I am a U.S. citizen married to a nonresident alien. What is my filing status and can I claim an exemption for my foreign spouse?

In general, if you are a U.S. citizen or resident alien married to a nonresident alien, you are considered “Married Filing Separately” unless you qualify for a different filing status. If you pay more than half the cost of keeping up a home for yourself and a qualifying child or other relative, you may qualify for the head of household filing status.

If you are a U.S. citizen or resident alien married to a nonresident alien, you and your spouse can choose to have your spouse treated as a U.S. resident for all U.S. federal income tax purposes. This allows you and your spouse to file a joint return, but also subjects your nonresident alien spouse’s worldwide income to U.S. income tax.

For more information on the filing status requirements, see Publication 501, Exemptions, Standard Deduction, and Filing Information.

If you file a joint return, you can claim an exemption for your nonresident alien spouse. If you do not file a joint return, you can claim an exemption for your nonresident alien spouse only if your spouse has no income from sources within the United States and is not the dependent of another U.S. taxpayer. (Emphasis mine)

In order to take the exemption, the spouse must have an ITIN.