1. Filing options:
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free You may find that not all of the "Guided Tax Preparation" options support all the overseas forms - Free Fillable Forms definitely does, and this situation sounds simple enough that Free Fillable Forms should be fine. Two commonly recommended options in the overseas community are TaxAct and OLT. TaxAct is free for simple returns, not free for more complex ones (although relatively cheap compared to, for example, TurboTax). OLT is free for all federal returns (hopefully you don't need a state one).
2. You
can file by post, but certainly not recommended. The IRS remains
massively backed up for paper filings, easily talking 6 months for them to process the return, and hopefully they don't lose it. I've had to do a couple amendments on paper and it takes ages. But International addresses are here:
https://www.irs.gov/filing/international-where-to-file-addresses-for-taxpayers-and-tax-professionals.
3. FBAR: Yes, one per person, online, completely separate from taxes. Pull all the information together on a spreadsheet, then transcribe it into their online form. First year takes a bit of time gathering information (account numbers, bank addresses, etc.), but save all that and future years should be pretty quick.
https://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html4. Forms - the software should guide you through the forms you need.
- Certainly 1040.
- Schedule 3 and form 1116 for Foreign Tax Credit, if used. Doesn't sound like FEIE (form 2555) would apply.
- Probably need Schedule B if you're filing FBARs because of Part III - you'd fall under the requirement to file schedule B because: "You had a financial interest in, or signature authority over, a financial account in a foreign country or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and trusts."
- Schedule 8812: Only part of the child tax credit is refundable (the "additional child tax credit", but from what you've said, you'd probably get most or all of the refund, up to $1,500 per child. Have to double check how MFS with an NRA spouse affects this, I'm not particularly familiar with that situation.
- That's it at first glance, but let the software guide you as well. I just flipped through my 2021 return and there's nothing else that would apply to your situation (mine has some self-employment stuff, capital gains, etc., but doesn't sound like any of that applies).
- Forms 3520/3520A can apply for some foreign accounts (some argue SIPPs, for example, are foreign grantor trusts). But a savings account and an ISA wouldn't fall under this, if that's all there is.
