Do I need to file a US Tax Return?

You can also drop off your filing at the US embassy on Grosvenor Square in person, if you're in London and have the desire. They'll even offer clarification for any questions, and stamp your photocopies for you as proof of receipt. They won't make the copies themselves though, so be sure to bring your own.

Just give it 10-20 minutes or so to get through the queue out front, and take your US passport. Downstairs to the left.

The address to send tax returns to in London:
Internal Revenue Service
American Embassy
24 Grosvenor Square
London W1A 1AE
United Kingdom

I sent a return to London this morning by Royal Mail, Special Delivery. Guaranteed delivery tomorrow. Cost: £5.05. It's trackable over the internet.

I would be careful of this option.  In my last few trips to the Embassy, they have been increasing grumpy about acting like the middle man. 

If you are mailing, there really isn't any difference in mailing to the Embassy and mailing to Austin.  I wouldn't want to be caught out when the Embassy refuses to pass on to the IRS.

I would be careful of this option.

Fair point Sara. I once sent a return to Philly or wherever it was then, recorded delivery, and after 8 months realized the cheque hadn't been cashed. Royal Mail traced it to the U.S. Postal System, but the IRS claimed they never received it. I had to send a new cheque on a new 1040, with interest and penalties for late filing in spite of certified posting. Hopefully, things are now improved, but I always feel better receiving confirmed delivery to the IRS, at the an accurate UK address, from Royal Mail. No chance of blaming the other system. Once bitten...and old habits die hard. I've always wonder where that return ended up!

Still trying to sort through this whole US tax return thing.  Here is my situation:

Moved to the UK in September 2008 for school.  Filed 2008 taxes last year as normal, given I lived majority of the year in the US.

For 2009 tax year, I've been in the UK the whole time.  Jan-September on a full-time university programme, and working since October.  I've had a bank account earning minimal interest, and have been paying student loans, and have earned more than $8,000 during the year.  What forms do I need to file and do I still need to file a state tax return, as well?

I am 68, I am a dual citizen born in UK, I have only a US state of New York pension ,my social Security and small UK Old age Pension (£28 a week ). I filed by US taxes for 2009 and will claim a credit from HMRC under double Taxation treaty for my income tax in UK for year ending 5 th April 2010 ( I arrived here in UK Feb 2009  and filed with HMRC for that short period of residency already ) . I know my US federal Tax will be dwarfed by what HMRC wants, I suppose I get no credit for UK taxes paid over and above what I paid Uncle Sam?.
 In essence I am a pensioner on a limited income with US citizenship and a work history almost primarily in the US. My wife, a US citizen, here on a spousal visa, who only get Social Security ( and £18 a week Old age pension on my UK account )and will soon have to pay £900 for ILR ( I don't think we could then afford citizenship! ).

I suppose I get no credit for UK taxes paid over and above what I paid Uncle Sam?.

The tax situation, for both you and your wife, has become much more difficult simply because you’re a US citizen receiving US and UK pensions whilst a resident in the UK. I’m sure you’ve figured this out already. In your circumstances the first year of US and UK filing are the most complicated, but once you’ve been in the system for several years, it should ease a bit. As a general rule (in my humble opinion), always pay HMRC foremost once you’re certain of your tax status and the status of your pensions. On the US side, be sure to check your liability to New York State (under domicile rules), if any, even though you’re now living in the UK.

For the US, your pension income is unearned. (You cannot use Form 2555.) You can offset any taxes paid to the UK (HMRC) by using Form 1116 (Foreign Tax Credit). Not an easy form to follow, but certainly not insurmountable. Generally, once you claim the foreign tax credits from Form 1116 back on to Form 1040, you should not owe any US taxes (due to the higher tax rates in the UK).

Under the US/UK Tax Treaty, your US Social Security can be claimed as only taxable in the UK. It’s my understanding that to invoke the treaty you should file Form 8833. Invoking the treaty can become tricky. You certainly may want to seek professional advice if you chose this route.

As a reminder, be sure to file an FBAR to the US Treasury (which is separate to your US taxes) if you are so required.

In these specific circumstances the New York State pension will probably be exempt from UK tax under the tax treaty - provided of course that UK returns are filed electing to use the treaty articles.

You may of course qualify for pension credits in the UK - but these would be taxable in the US.

Your UK & US returns are indeed now highly complex.  I concur with the previous.

Still trying to sort through this whole US tax return thing.  Here is my situation:

Moved to the UK in September 2008 for school.  Filed 2008 taxes last year as normal, given I lived majority of the year in the US.

For 2009 tax year, I've been in the UK the whole time.  Jan-September on a full-time university programme, and working since October.  I've had a bank account earning minimal interest, and have been paying student loans, and have earned more than $8,000 during the year.  What forms do I need to file and do I still need to file a state tax return, as well?

The minimum anyone with income should consider are the 1040 and 2555-EZ but you should not owe anything. If you own property and want to futz about with housing credits, then do the 2555. I, don't as I never owe any taxes to the US and want an easy life.

State: Possibly, depending on the state you're from. I don't, as I have no driver's license nor ever owned any property thus proving residence of California would be a neat trick on anyone's part. I've been resident in the UK for 23 years. As you are so recently relocated here, I would say yes, if your state has income tax.

Hello.

Just to introduce myself. I am a UK/US Tax Advisor/Accountant based in Manchester. Would be happy to help anyone with issues. I am new to this board, and I'm not sure if I'm allowed to include contact details, so I won't because I don't want to be accused of spamming or advertising etc, but either way, feel free to PM me for help etc.

Hi

I hope someone can help, I have been searching about whether I should file a US tax return and I think the answer is yes but don't know what to do now.  I am a US citizen (born in the US) but moved to the UK when I was 14 so now have dual citizenship.  I never worked in the US but have now been working in the UK for about 13 years and was not aware of the requirement to file until I recently read an article about this.

So, my question is, do I need to file and, if yes, what do I do now and am I liable to any penalties?!?!

Thanks in advance for any help!

You are required to file annual US income tax returns plus annual US information returns. Penalties for failure can at least in theory be substantial, so you should seek professional advice to decide how many years to file, what to file and how best to submit these to the IRS. The OVDI ends on 31 August if you want to use that route.

Is anyone aware of whether it's still possible to hand-deliver a filing to the IRS office at the embassy in London? I know it used to be listed as an option on their website, but this year it's either been removed, or I can't find it. As a local, this is by far the cheapest and most secure filing method, and I always enjoy spending a bit of time at the embassy.

I posed this question to the IRS email helpline, who responded with:

The IRS has a London office where you can copy and authenticate your documents, as well as have them forward your forms on to the proper IRS processing center in Austin, Texas.

I'll confirm with the office itself by phone tomorrow, otherwise looks like it's still possible.

It is possible to drop off US returns and FBARs at the IRS office at the Embassy but they are very very short of staff.

They are - this month - advertising for staff.  This is a genuine ad if anyone wants to apply:

http://www.taxation-jobs.co.uk/jobs/view/157636

U.S. Embassy, London. Taxpayer Service Specialists x2 - Internal Revenue Service (IRS)

Job Type:

In-house

Specialism:

International Tax

Contract Type:

Permanent

Salary:

£25-£40k

Location:

London / Central / West End

Posted:

04/05/2011


Job Ref:

11/18

*American Citizenship is a requirement for the position. Please note, Green Card holders are ineligible.

The Internal Revenue Service (IRS) at the U.S. Embassy in London is in search of two detailed orientated Taxpayer Service Specialists who will provide technical tax information and procedural help to a variety of taxpayers and/or their representatives in person, by telephone, or by correspondence to assist the taxpayer in meeting their U.S. tax filing and payment obligations. The level of assistance varies according to the taxpayer’s needs in the context of their total tax situation. You will be a member of the IRS’ Large Business and International Division, International, Overseas Post.

Qualifications Required:

NOTE: All applicants must address each selection criterion detailed below with specific and comprehensive information supporting each item.

Education:College/university studies in general coursework such as: accounting, business, economics, law, mathematics, statistics, humanities or science is required.

Prior Work Experience:Experience in one or more of the following areas: U.S. individual income tax or other U.S. federal taxes; customer service/relationship management; or on-line researching of U.S. tax issues on commercial databases such as Lexis/Nexis, Westlaw, etc.; financial services; business administration is required.

Language Proficiency: English -- Level 4: Fluency in reading, writing and speaking is required.

Knowledge:General understanding of customer relationships and a demonstrated ability to learn and apply complex concepts is required.

Skills and Abilities:Must have U.S. Citizenship. Permanent U.S. residence card is not acceptable. Individual income tax preparation, research and analysis skills are required. Communication skills including interviewing, questioning, explaining complex issues to non-experts, dealing with diverse and/or irate individuals; and presenting/instructing is required. Problem solving for complex tax questions/issues and a working knowledge of Microsoft Office Suite is required. Must be able to maintain confidentiality of information received.

Salary:Without US Government Experience £31,641 (Gross starting salary per annum, consisting of: basic salary - £27,269, London weighting – £2,100 and bonus - £2,272).

With US Government Experience £34,004 (Gross starting salary per annum, consisting of: basic salary - £29,451, London weighting – £2,100 and bonus - £2,453).

Plus discounted health care plan.

*American Citizenship is a requirement for the position. Please note, Green Card holders are ineligible.

For information about how to apply for this position, please visit our website at: http://london.usembassy.gov/hrd/index.html

Please quote reference 11/18.

I own my own U.S. Expat Tax Return Service, so if any of you need any help, please let me know. I would love to answer all your questions! We can do everything online or over the phone.

http://expatriatetaxreturns.com/