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Topic: OMG American Taxes!  (Read 1317 times)

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OMG American Taxes!
« on: March 27, 2016, 01:04:18 PM »
Hi!
After having received amazing help with my spousal visa, I now need some help with the minefield that is US taxes!
My husband (USC) arrived here in Apr 2015 and started working in Jun 2015.  He also has a property which he rents out in the US.
I am British and I also work.
Can someone please tell me which forms he needs to fill out, as it's very confusing.  He is not very good at computers, and is only used to filing his taxes for when he worked in America.
We don't have $10,000 in a bank account...(think I saw that as a threshold for something)
I know absolutely nothing about US taxes.

Thank you so much to anyone who can help, or point me in the right direction.
* 1993/1994 dated my future husband
* Oct 2013 back in touch after 20 years
* Feb 2014 flew to US for 10 days to visit him
* May 2014 flew back to US for 2 weeks and got married!
* Oct 2014 husband flew to UK for 2 week holiday
* Jan 2015 sent off visa application
* Jan 2015 visa approved!
* Apr 2015 husband moved here
* Oct 2017 FLRM approved!
* Nov 2019 Life in the UK Test Passed!
* Mar 2020 ILR applied for
* Jun 2020 BRP appt
* Jun 2020 IPR approved! (without priority)


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Re: OMG American Taxes!
« Reply #1 on: March 27, 2016, 04:21:14 PM »
Hi!
After having received amazing help with my spousal visa, I now need some help with the minefield that is US taxes!
My husband (USC) arrived here in Apr 2015 and started working in Jun 2015.  He also has a property which he rents out in the US.
I am British and I also work.
Can someone please tell me which forms he needs to fill out, as it's very confusing.  He is not very good at computers, and is only used to filing his taxes for when he worked in America.
We don't have $10,000 in a bank account...(think I saw that as a threshold for something)
I know absolutely nothing about US taxes.

Thank you so much to anyone who can help, or point me in the right direction.

Your husband should be dealing with this. He should be filing "married separately" and filing the same forms he would do in the US. He will declare his UK income and US rental income on his Federal US taxes, so at least a 1040 and Schedule E, and probably just declare the rental income for state tax purposes. Foreign tax credits (form 1116) or FEIE should be applied for the UK wages so there should be little to no US income tax, but the the full US tax would be paid on the rental income. On the UK tax side a foreign tax credit would be taken on the rental income when he files his UK self assessment.
« Last Edit: March 27, 2016, 04:23:59 PM by nun »


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Re: OMG American Taxes!
« Reply #2 on: March 27, 2016, 04:59:39 PM »
From a UK perspective he needs to be registered for self-assessment - and can decide if he wants to elect to claim the remittance basis or file on the arising basis.


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Re: OMG American Taxes!
« Reply #3 on: March 28, 2016, 03:33:34 PM »
We don't have $10,000 in a bank account...(think I saw that as a threshold for something)

The $10K is the magic amount for FBAR (now FinCen) reporting; this is separate from a US tax return. The requirement kicks in when the aggregate value of all foreign financial accounts that a US citizen either "owns" or has a signature authority is $10K or over. It's not just $10K in a single account, and it's based on the maximum value of each account at any point during the year.

For example, say you have $5K in one account on June 1. You open another account and transfer $4K to the new account, and leave the first account untouched. You start making deposits, and in September (or whenever) the second account has $5001. Even though the first account has only $1K, the maximum value was $5K. So for FBAR, it's $5K + $5001 = $10001 and you have to file. Accounts that you, the UKC have in your name only, and that your husband doesn't have signature authority over, don't count.

FBAR can get complicated, as financial accounts are more than just bank accounts. Your husband needs to be aware of the reporting requirements. FBAR is only filed on-line, and must be done by June 30 (unless they've changed the date for the 2015 filing - I haven't looked).
Married December 1992 (my 'old flame' whom I first met in the mid-70s)
1st move to UK - 1993 (Letter of Consent granted at British Embassy in Washington DC)
ILR - 1994 (1 year later - no fee way back then!)
Back to US in 2000
Returned to UK July 2011 (Spousal Visa/KOL endorsement)
ILR - September 2011
Application for naturalization submitted July 2014
Approval received 15-10-14; ceremony scheduled for 10 November!
Passport arrived 25 November 2014. Finally done!


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