So my wife got a part time job in UK last July. Great. I still had some income coming in from my former employer in the USA so we will have to file by April 15 back in the USA. I have received W--2 from my former employer. Question is....
1-Do we need a P60 from my wife's employer?
2-She is in a bracket such that no taxes are being withheld so do they still issue her a P60 in this case?
3- Do we have to include her income even though it is WELL below, and combined we will be below the $100,000 threshold for being taxed as USA residence living in UK.
4- We understand the P60 is not issued until April 15. If we do need it.... how does one work that? Does everyone file an extension for USA taxes?
Thanks in advance for all the help.
NWKH
1. There is no 15 April deadline. If needed, a US income tax return for 2018 is due to be filed by 17 June 2019; but can easily be extended until 16 December 2019 if necessary by filing an IRS Form 4868 by 17 June - followed by writing a letter to the IRS by 15 October 2018. An FBAR for 2018 must, however, if needed be filed with the US Treasury by 15 October 2019.
2. Electing to claim the foreign earned income exclusion is unlikely to produce the optimum result.
3. Is the income received from the former US employer taxable in the UK?
4. To figure out your wife's UK employment income for 2018 you would look at the cumulative year to date total on her December 2018 payslip.