First time filing from the UK...

I'm sorry to bother, but this is a question for list-sibs that've been living over here for a while I believe.  I moved over here November 2005 and have been working since last December.  My mom filed my taxes for me using my address in the states for last year's taxes.  I didn't know, as no one's really written a definitive manual on moving from one country to another (that would be a godsend).   I've just recently filled out the form and sent off my change of address with the IRS. 

I guess my real question is whether or not I'm going to have to pay taxes on income earned over here to the IRS.  (Please tell me no!)  I'm planning on calling the IRS once the holiday season has settled down and everything's back to normal working hours (and I have a day off that I can devote to sitting down and concentrating completely on all this).  If anyone has any info I'd really appreciate it, thanks in advance!

You have to file a US tax return as a US citizen, full-stop.  Owing tax is another story.  Generally if you don't earn the equivalent of $80,000 USD then you will not likely owe US Tax.  If you do make in excess, you are likely to owe tax to the IRS.

Weight off my shoulders on that one, thank you for that Kitsonk!

I just spoke to the IRS (and I know I should've asked 'em this one but they seemed to rush me off).     They told me to file a 1040 - but you have to submit a W-2...  Correct me if I'm wrong, but we don't get W-2s working in the UK...  So how do you fill out a 1040 from the UK???

Sorry to bother, but I'm utterly confused now. 

You don't have to file the 1040 with a W2, unless you have one.  In your case, you simply take the amount of your foreign earnings converted into dollars and put that figure on the wages/compensation/etc line (line 7, off the top of my head).  This is the same line where you would report W2 wages if you had them, the only difference is that you are not attaching any W2.

this is a question for list-sibs that've been living over here for a while I believe. 

what does list-sibs mean?

I was told by the IRS that if you are NOT working, you don't need to fill out a 1040 because obviously it would be blank; however, if you have stocks, IRA, etc., and the interest is more than $3,600, then you need to pay U.S. taxes. He did say that it would be nice if I sent them my new address, although not mandatory, so I haven't.

what does list-sibs mean?

Sorry 'bout that, I'm used to being in yahoo!groups...  Its an abreviation for List Siblings, just another way of referring to everyone on the blog listing.

Obviously the IRS doesn't even know their own policy.  No surprise there.  There is a certain schedule that you fill out when you have foreign earned income (I can't remember the schedule now) where you report your foreign earned income, plus any credits for eligible taxes you have paid abroad.

Not filling out a 1040 does leave you open to the IRS questioning that you might have been earning income and then attempting to come after you while you are abroad.  It is your responsibility to report that you have not been earning anything.

Also, if you have over the equivalent $10,000 in foreign accounts at any point during the year, or one you have control over (like a joint account with your spouse, etc) then you have to fill out a US Treasury form stating what accounts you have and where.

If you have US bank & brokerage accounts then the IRS will expect a US tax return in any case. 

If US investment income is remitted to the UK you'll need to declare this in the UK too and pay UK taxes.

You may also have to file US tax returns to declare foreign bank accounts or gifts from non-resident alien spouses...

Now the good news!
1. If you have child/ren and are on low earnings you can claim a refund even though you paid no US tax if you qualify for the refundable child credit; and
2. If you paid telephone tax then you can claim the standard refund for 2006!