how to treat this tax year?

I'm a US citizen, working in the US through end May 2006, taking a job in London starting June 15th. I'm in a small company, so I'm not getting all the tax assistance that the Andersons of the world provide.

I made $47K in untaxed salary/bonuses through May 2006. And, I have to sell stock so that's another $19K in US income. I'll make another $55,000 with the exchange in untaxed income in London.

Now, I do own a home, so I will have some interest/tax deductions in the range of $10-20K this year.

My question is - how is the double taxation figured, - is it on the total gross income combined in both countries or just what i earned in the UK this year? I will be way over if it's combined, but not bad this year if it's not.

Also, I'm living in Illinois, will I be taxed the entire year in this state?

Thanks! I've read some of the posts but I can't quite piece it together for my particular situation.

I am sorry but I do not understand the question.  You start off by discussing May 2006, yet later on you talk about what you "earned this year" (in the past tense).

I do hope that you are not thinking of using Arthur Andersen or thinking that other folks do, since they went out of business some years back!

If you are a US citizen moving here in May 2006 you should take professional advice on both UK and US tax, even just a one-off consultation will save you more money and worry than it will cost (and is tax deductible!).

Just by the by, it is NOT the done thing in the UK to discuss earnings in public.  We are all very reserved over here!