Help

I am so "income taxed challenged", I need help.  I was told that once I moved and became a resident of the UK, I did not need to file income tax in the US. I have been here for over 3 years now and haven't filed in the states.  I also started work last year here in the UK, so does that mean I have to file in the US and UK?

Also I received a settlement from the states from my divorce this year, am I obligated to file that with the IRS?

Any help will be greatly appreciated, as always,
Many Thanks,
Celia

Even though you live in the UK, you are still a US citizen and are required to file a tax return in the US.  If you make under $80,000, you will not be taxed in the US on your UK income because there is a treaty between the two countries that rids you of being doubly taxed.  That said you will still need to file a return to let the US know that you do not owe tax.  Now that you are earning money in the UK, you will be responsible for UK taxes.  Fortunately, in many cases, the UK does not require you to file a tax return because the correct amount of tax will have already been removed from your pay check.

Your divorce settlement is likely non-taxable.  I am not sure how it is reported to the IRS.  At most, you would report it and say that it is tax exempt.