Confused about filing for first time after move to UK

So I've realized the June 15 deadline of the automatic 2 month extension for being abroad is approaching, and I'm confused about what to do.

I moved to the UK in August 2005; I have a permanent job and expect to stay here for the foreseeable future.

I think I should file form 2350 to get an extension to qualify for the foreign earned income exclusion.  But do I want the "bona fide resident test" or the "physical presence test"?  And what is this about additional time for allocating moving expenses?  I certaintly spent a lot to move here!

Also, how do I handle the state taxes--do they get extended too, like the federal, or are they still due by June 15 (I moved from NC, which also gives an automatic 2 month extension for being abroad)?  And if they're still due, how do I fill them out?  I remember on my state taxes always having to fill in things from the federal form, and thus having to do the federal form first.  But if I need to do the state one first, I am very confused.

You've got the basic concept.  File the 2350 and ask for Jan 30 07 for your deadline, that takes the pressure off.

You can file in Aug if you return to the US for 35 days or less between Aug 2005 - Aug 2006.  That's the PPT.  If you return more, you file in Jan 07 and that's the BRT.

Ignore the moving expense item for now, it can be done in the maths phase of doing your returns.

To know what to do about your state, you should have mentioned which state you're from...  Each one's different. 

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Thanks!  I'm guessing then that you can choose either one, if you are applicable for both.  If I file for the January deadline, can I then file earlier?

I've done some research on my NC tax, and found that I can get up to a 6 month extension--that brings it until October 2006.  But for NC taxes, I need to fill in items from the federal form (like it says "enter the value from Line 42 Form 1040 or Line 27 Form 1040A" etc.), which means I need to do the federal form first (I assume, I can't imagine how I could do it otherwise).  So can I apply with the federal form for a January extension using the bona fide resident test, and then file in October?

Thanks!  I'm guessing then that you can choose either one, if you are applicable for both.  If I file for the January deadline, can I then file earlier?

While you can apply for both, my opinion is you might want to apply for bona fide resident, since it seems that the physical test is more of a "catch all" for those you can't prove they were bona fide residents.  When I applied under physical residence, I never got any questions from the IRS, but I suspect if I did, they would require to see my passport and tickets and all sorts of gory stuff, but I could only qualify under that because of the nature of my job.

The phsical presence test is usually best in the year of move because it means you get to file sooner and gives you bonus days of foreign earned income exclusion.

Don't forget that employer pension contributions to your Scottish University pension will need to be reported on your annual US tax returns even though they do not qualify for the foreign earned income exclusion.

The phsical presence test is usually best in the year of move because it means you get to file sooner and gives you bonus days of foreign earned income exclusion.

Bonus days?  I don't understand.  If I apply for bona fide resident, then do I not get the rest of 2005 that I was in the UK counted?  I thought that was the whole point of waiting.  I think I just don't know what that means.  Could you explain?  Thanks.

Don't forget that employer pension contributions to your Scottish University pension will need to be reported on your annual US tax returns even though they do not qualify for the foreign earned income exclusion.

Where are they reported?  As income?  Is there a seperate bit for stuff like pensions?  I've never had one before.  And what are employer contributions?  All I know is that some of my income goes straight into the pension.  That can't be an employer contribution, because its from my salary.  How would I find out what the employer contribution is?  My pay stub has information about Employers NI, but I can't see anything about employers pension.  Sorry to have so many questions.

1. You get bonus days because by claiming under the physical presence test you count back 365 days after the 330th qualifying day to figure out the foreign earned income exclusion. 

2. I assumed you were in the University Supperanation Scheme?  If so then your employer is also paying something towards your retirement.  The contributions get recorded each year on the Other Income line of your US tax return.  You may need to ask the pension plan administrators for the amounts.  You may be able to claim exemption under the double tax treaty but would need to disclose this annually.

Most folks will save more tax by having the returns prepared professionally once overseas as life becomes a whole bunch more complicated.