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Topic: Do I need to file a US Tax Return?  (Read 99403 times)

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Re: Do I need to file a US Tax Return?
« Reply #105 on: May 25, 2014, 04:36:22 PM »
I'm not sure on whether I need to file this year. I'm a US/UK citizen, living in England. In 2013, I only earned £5000 (so certainly not over the $10000 threshold for filing as a single person), as I'm a full time student largely living off savings. However, at the start of the year, my aggregate bank balances were over $10000 - this declined through the year as I ate into the savings.

Am I right in thinking, therefore, that I do not need to file a 1040 as I am below the threshold, but that I do need to file an FBAR?


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Re: Do I need to file a US Tax Return?
« Reply #106 on: June 18, 2014, 03:36:33 PM »
Hello Mwnic,

That is absolutely correct, you will not have to file a return, but you will be required to file an FBAR. The FBAR is due  by June 30th, and since there are no extensions, you should get started on that soon (or hire an expat accountant like Greenback).

I will also mention that if you are self employed, the filing threshold drops significantly to only $400. If that is the case, then you actually will have to file a return.

The last thing is that even though you do not have to file, it may be wise for you to do so. I say this as if you have been paying foreign taxes on the income you have received, you may be able to get that credited back to you as a refund.

I hope this helps!!
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Re: Do I need to file a US Tax Return?
« Reply #107 on: June 19, 2014, 02:45:13 PM »
Filing isn't particularly difficult.  I've filed even in years when I made less than the threshold, simply because I'm still paying tax on dividends from a (very small) investment account.  It cost me more to mail the forms, and the refund check, than I either owed in tax or received as a refund.  But, to me, it's the principle.


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Re: Do I need to file a US Tax Return?
« Reply #108 on: August 28, 2014, 12:03:40 PM »
I need to ask a really blunt question: I have lived as a UK national in the UK for 30 years, but I have US citizenship by birth, and lived there my first 19 yrs.
I have never revisited the US, I never intend to, I have not held a US passport since 1984, the USA has no relevance to my life at all. And now, as the furor over the new FACTA measures grow, I find out that the US expected me to file returns all along!! So - honestly, in my situation, do I really need to worry? What is the worst the U?S can do?
« Last Edit: August 28, 2014, 12:06:28 PM by TaxQues »


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Re: Do I need to file a US Tax Return?
« Reply #109 on: August 28, 2014, 10:31:59 PM »
So - honestly, in my situation, do I really need to worry? What is the worst the U?S can do?
A really blunt reply:

If you had been born in the UK to a documented US parent (thereby becoming a US citizen); but never had your birth recorded at a US Embassy; never been present in the US; never been heir to a US estate or beneficiary of any US account; never had a US Social Security number; never had a US passport; never had an acquaintance who turned your name into the IRS to claim a reward; you might be able to fly under the radar for the rest of your life, provided you never have any contact with the US in the future. That includes being a passenger on an airliner bound for Canada, Mexico, or elsewhere that is diverted to the US.

Since you were born in the US and your birth was recorded (thereby automatically becoming a US citizen); you have had a US passport at one time; possibly have a US Social Security number; if male, possibly registered for the US Draft; and you lived a recorded life there (school records, drivers license, etc.) for 19 years; you may find on opening any new financial account in the UK (simple bank account for example) you may be required (by a decree of Parliament) to disclose your US citizenship. You may lie, but if found out it could have severe consequences for your financial future in the UK. If an employee of a UK financial institution has any reason to believe your are a US Person (by indicia such as a US place of birth) you will be classified as a US Person. If you cannot prove otherwise (by a CLN for example) the financial institution may be required to give your name to HMRC who will then forward it to the IRS.

What will the IRS do? I don't know.

You may want to research 'renouncing US citizenship', 'relinquishing US citizenship', the IRS New Streamlined Voluntary Disclosure Programme', or a reasonable cause plea. You may want to read IRS Publication 54, and the requirements for filing an FBAR. You may wish to investigate the possibility of HMRC collecting a debt in the UK for a US tax or FBAR claim; and if it's possible to collect both from a UK citizen resident in the UK (I don't know the answer to that).

I'm afraid no one can advise you as to what to do at this point, or whether you should worry. This is a very personal decision.   



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Re: Do I need to file a US Tax Return?
« Reply #110 on: October 10, 2014, 07:04:12 PM »
Hi, apologies if this has already been answered in the thread and I missed it.

My husband's US company has allowed him to work abroad since he doesn't need to come into the office and he works from home. So basically we can live anywhere. I will be returning to school in Durham for my PhD, and we would like to live there so I can finish my degree, and he would travel back and forth as needed. He would be a dependent on my student visa.

We will be filing a US return, but would we also have to file a UK return? I'm not sure what the rules are. Do the annoying UK/US tax rules apply to us if he is essentially still working in america?

Hope this makes sense. :)

Thanks!


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Re: Do I need to file a US Tax Return?
« Reply #111 on: October 15, 2014, 11:13:20 PM »
Your husband may be UK resident; you'll want to look at HMRCs SRT.

He will have the blessing of English employment law, including the right to a written contract, paid leave, paternity pay, redundancy pay, pension auto-enrolment and so on.

He will have to pay UK tax on his employment income; hopefully the employer will operate UK PAYE tax withholding and stop withholding in the States so you don't have cashflow problems.



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Re: Do I need to file a US Tax Return?
« Reply #112 on: November 20, 2014, 04:05:28 PM »
My question is similar to the second post in the thread made by pittpanther36, in that I am a USC now living in the UK and I did not file a tax return for the 2013 tax year because I made significantly less than the threshold amount (thinking it would fall under “Married, filing separately”), but now I’m second guessing this after reading several articles.

I am unemployed, but obviously we are living off my BC husband’s income.  Like pittpanther36, my personal earnings didn’t exceed the minimum amount required to file and I guess I am confused about what makes up a gross income – should I have filed and reported his income, along with mine, as my gross income on my tax return?  If so, should I use “Married, filing jointly” or “Married, filing separately”?  Thank you in advance for all your assistance, my questions are probably a bit silly but I’ve never done my taxes on my own because they’re confusing enough as it is, and now that I’m adding a foreign spouse into the mix I am incredibly overwhelmed… and panicking slightly   :-\\\\  But hey, at least I’m clear on the FBAR!  :)


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Re: Do I need to file a US Tax Return?
« Reply #113 on: November 20, 2014, 05:00:41 PM »
You don't have to file your husband's earnings unless you want to for particular reasons, like getting US tax credits for dependants or setting yourselves up for a future move to the US (not required but apparently can help ease the process). If you would have been married filing separately and didn't meet the threshold, you don't have to file.
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Re: Do I need to file a US Tax Return?
« Reply #114 on: November 21, 2014, 07:24:17 AM »
Good morning all.

Having gone through the forum looking at US taxes I am still none the wiser.

My wife has started working now and I (we) do not know anything about paying US taxes. Please excuse my lack of knowledge, but does she have to pay US taxes on a £22,000 (PAYE) salary?

Many thanks
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Re: Do I need to file a US Tax Return?
« Reply #115 on: November 21, 2014, 07:53:08 AM »
As your wife's income is over the filing threshold of $3,900 she must file an income tax return and may also need to file an FBAR. She is unlikely to owe any US tax, but must still file.


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Re: Do I need to file a US Tax Return?
« Reply #116 on: November 22, 2014, 09:10:16 PM »
As your wife's income is over the filing threshold of $3,900 she must file an income tax return and may also need to file an FBAR. She is unlikely to owe any US tax, but must still file.

Thanks Guya,

What percentage of tax is the norm for ex-pat taxing?
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Re: Do I need to file a US Tax Return?
« Reply #117 on: November 24, 2014, 02:53:10 PM »
Well you will have to report her full income to the US. Fortunately, there are a number of credits and exclusions in place which should eliminate any US liability.

Let's say for example that you used a Foreign Tax Credit to eliminate her US income. With the tax credit, basically you would get a credit for all the taxes you have already paid to the UK, and you can apply that credit towards your US tax liability. As the rates in the UK are higher than those in the US, it should eliminate any US taxes owed.

Lastly, if your wife has not been filing for some time, then it is best to get caught up using the Streamlined filing program. With the Streamlined program you file the last three years of taxes, and six years of FBAR (FBAR's are needed if there is more than 10K in her foreign accounts- joint accounts included), and you are considered up to date.

I hope this helps, good luck!
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Re: Do I need to file a US Tax Return?
« Reply #118 on: December 02, 2014, 11:45:09 PM »
File or not to file, that is the question. Find the answer in this article. Pas it on. enjoy!

newcomer link: http://taxintelligence.us/2014/10/15-tax-tips-for-us-expats/ [nonactive]


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Re: Do I need to file a US Tax Return?
« Reply #119 on: January 28, 2015, 03:23:43 PM »
I'm a US citizen and have been living in England since Oct 2013. My husband is English and has always work here (in England). I started working same month I moved, so for all 2014 I've been earning. My gross income for 2014 (converted to USD) is about $52,000. I don't know if my husband's income is relevant. I've been filing US taxes since 2009, as I started working in 2008 after graduating uni. Does anyone have some guidance on how to go forward? I need information regarding the filing process, as I was just used to doing them myself through turbotax in the US.


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