A Couple Stupid Questions (But I need to know)

Hi Solaire

Whether or not you need to file a UK tax return will depend on whether or not you are considered self-employed.

If you are considered doing casual earnings and it's under £2500, you may not need to file a tax return but you should still contact HMRC for clarification and let them know. HMRC are very approachable. I believe there is even a web chat however I have never used it. You can even register for a Personal Tax Account

I assume that your status at the moment is one of only a US citizen however if you ever want to take up British citizenship in future, you will be assessed if you are of “good character” and tax issues will be taken into account and can affect your application so it pays now to start doing the right things and keep in communication with HMRC about what you are earning in untaxed income even if no tax is due.

Regarding the US side of things, the important thing to note is that there is a Foreign Earned Income Exclusion (FEIE) for earned income (wages) overseas and the threshold is in the $100,000 region. So you will definitely not owe any US tax based on what you said however you still need to file if you are over the filing threshold and claim the FEIE.

Again you should read up on publication 54.

Forms you might need to file are (I would think the first 4 might apply now)
Form 1040
Schedule B
Form 2555 (this is for the FEIE)
Form 8965 (this is the health coverage exemption)
Form 8833 (possibly if you are ever part of a work pension scheme)
and possibly form 1116 for foreign tax credits if needed in future

Regarding the US side of things, the important thing to note is that there is a Foreign Earned Income Exclusion (FEIE) for earned income (wages) overseas and the threshold is in the $100,000 region. So you will definitely not owe any US tax based on what you said however you still need to file if you are over the filing threshold and claim the FEIE.

Again you should read up on publication 54.

Forms you might need to file are (I would think the first 4 might apply now)
Form 1040
Schedule B
Form 2555 (this is for the FEIE)
Form 8965 (this is the health coverage exemption)
Form 8833 (possibly if you are ever part of a work pension scheme)
and possibly form 1116 for foreign tax credits if needed in future

Can I file all of these online somewhere? Or is there like a software that I should download like Turbotax or something?

Can I file all of these online somewhere? Or is there like a software that I should download like Turbotax or something?

It's easiest to fill out the forms on the IRS website and post them in.

I recommend keeping a copy (digital and physical) of your taxes to use as a guide the following year. No use going through the stress and questions each year.

Each year, I print off my filled out forms, highlight bits that applied to me (each line item that needed a number filled it) and annotate them with where I got the numbers from and how I did calculations (for converting GBP to USD). It makes tax returns sooooo much easier and less stressful. The forms might change a bit year to year, so it's good to double check if lines have shifted, but it's still very helpful.

It's easiest to fill out the forms on the IRS website and post them in.

I recommend keeping a copy (digital and physical) of your taxes to use as a guide the following year. No use going through the stress and questions each year.

Each year, I print off my filled out forms, highlight bits that applied to me (each line item that needed a number filled it) and annotate them with where I got the numbers from and how I did calculations (for converting GBP to USD). It makes tax returns sooooo much easier and less stressful. The forms might change a bit year to year, so it's good to double check if lines have shifted, but it's still very helpful.

Ahh cheers

What do you use to convert GBP to USD? I normally just Google everything.

You can out about converting currencies at IRS page here

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

Again I strongly encourage you to read IRS publication 54, there is information in there about most of the questions you have asked (including the currency conversion) There is a whole section called "Foreign Currency". There is no need to google, read the publication 54, it is there for people in your situation.

You can out about converting currencies at IRS page here

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

Again I strongly encourage you to read IRS publication 54, there is information in there about most of the questions you have asked (including the currency conversion) There is a whole section called "Foreign Currency". There is no need to google, read the publication 54, it is there for people in your situation.

Cheers. I am reading publication 54. It's just a lot for my first time so I'm also just kind of asking questions.