Tax Documents arriving - What forms do I need to file?

Our tax documents have started arriving in the mail, so I need to stop ignoring them and start getting this all figured out.

Our situation for 2014.  I have worked all year in the US (I'm USC) and husband (UKC with green card) worked in US before going over to the UK and starting work. 

So my questions are: what forms exactly do I need to file and when do they need to be filed?

If more information is needed please ask and if there is anything else I may need to think about please let me know.

I appreciate any and all help!!!! 

Others will jump in with more definitive answers, but put simply - you will file pretty much as you would have in the US. Forms will include a 1040 plus any applicable schedules, and don't forget the new Form 8965.

Since your hubby has a green card (and I presume has not yet given it up), you will most likely file as MFJ, and include his UK income, but take a tax credit for the tax he has paid (if on PAYE) or accrued (if filing SA) in the UK. Don't forget to report any interest earned on UK accounts, and depending on the aggregate value of your financial accounts in the UK, you may also need to file a FBAR (FinCen 114) by June 30. This is only done on-line, but is fairly simple for most folks.

Assuming he gives up the green card, next year may be a bit different. You can likely use TurboTax or TaxAct software, which will make it easier for you.

If your husband ceased to have US health insurance when he left the US you simply cannot file until he meets the physical presence test; because of the new Form 8965 requirements - even if he does not want to claim the foreign earned income exclusion. Think about filing for an extension, firstly on Form 4868.

You'll also want to review if you need to file separate State returns if you have different State residence periods.

Thank you for the quick responses, I appreciate all the help as I have never completely understood taxes.

Since your hubby has a green card (and I presume has not yet given it up), you will most likely file as MFJ, and include his UK income, but take a tax credit for the tax he has paid (if on PAYE) or accrued (if filing SA) in the UK.

As far as including his income.  I am guessing that I just take his income through 31 December, is that correct?

Don't forget to report any interest earned on UK accounts, and depending on the aggregate value of your financial accounts in the UK, you may also need to file a FBAR (FinCen 114) by June 30. This is only done on-line, but is fairly simple for most folks.

Am I correct that the FBAR is for savings accounts in the UK over a certain amount?  We current don't have any substantial savings in the UK.

If your husband ceased to have US health insurance when he left the US you simply cannot file until he meets the physical presence test; because of the new Form 8965 requirements - even if he does not want to claim the foreign earned income exclusion. Think about filing for an extension, firstly on Form 4868.

You'll also want to review if you need to file separate State returns if you have different State residence periods.

Can you explain what the physical presence test is and the length of it? I did keep him on my insurance for 3 months after he left.

Thankfully we live in a State where we don't have to file State taxes.

Again, thank you for all your assistance.

Your husband's income is through December 31; the UK tax year is different. Remember it's his GROSS income, not net assuming he is on PAYE, and you need to convert to US$ based on an acceptable exchange rate. You can use the end of year rate that's published by the Treasury Department to do the conversion. Note that the IRS says they don't have an official rate. Read this for more info:

http://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates

And this for an Fx rate you can use: http://www.fiscal.treasury.gov/fsreports/rpt/treasRptRateExch/currentRates.htm

The FinCen 114 (FBAR) includes all financial accounts, not just savings - read this:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR

Read this for the criteria for the physical presence test:

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion---Physical-Presence-Test

And this for the bona fide residence test:

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion---Bona-Fide-Residence-Test

Don't get overwhelmed by all the "read this". You need to do it, and understand as best you can, but your tax return is not necessarily complicated. If you are physically present in a foreign country, then you get an automatic extension. Otherwise you file the form for an extension, which you should do now to give yourself some breathing space. BUT - any tax due must still be paid by April 15, 2015 or you may incur penalties and interest.

Accountants don't always understand taxes. The IRS doesn't understand their own rules, as evidenced by conflicting answers given by IRS staff to questions. So-called tax specialists often take the most conservative approach and when preparing a tax return, they frequently do what will not land them in hot water, which may mean you pay more tax than you may truly owe. Most of us just muddle along and do the best we can.