Tax nightmare - advice?

Quick question.  Does anyone know the average exchange rate £-$ in 2007 (to convert my wages). Thanks for your help.

Please see here:

http://london.usembassy.gov/irs/irsfaq.htm

Actually, I think I've cracked it (with a little help from some friends).

Well it appears to have worked - I got the copies of page 1 for each year sent back stamped "received"!  Woohoo!

One more thing off the "to-do" list for my visa application.

Thanks all.  Over and out.

Demographics:

Where the USC is married to a non-USC and you both live outside the US, your filing status should be Married Filing Seperately.  If the spouse has no SSN/ITIN you leave the SSN field for the spouse blank and where it says "enter spouse's full name here" you enter Non Resident Alien rather than the person's name.  Check box 6a, and put the number "1" in boxes checked on 6a and 6b and in exemptions part 6d add numbers on lines above.

I remember reading on the IRS site that a USC married to a non-USC living outside US can file MFJ.  We have the same scenario and works out fine.  There is no reason why you should file MFS.  In my case she has an SSN and it may be different in yours.  I would suggest applying for one asap anyway using a US address.

Good luck.

I remember reading on the IRS site that a USC married to a non-USC living outside US can file MFJ.  We have the same scenario and works out fine.  There is no reason why you should file MFS.  In my case she has an SSN and it may be different in yours.  I would suggest applying for one asap anyway using a US address.

Good luck.

You can only file jointly if you elect to file jointly.  This means reporting 100% of the non-USCs income/gains etc to the US for ever unless the election is revoked in which case it can never be made again with the same spouse.

You can only file jointly if you elect to file jointly.  This means reporting 100% of the non-USCs income/gains etc to the US for ever unless the election is revoked in which case it can never be made again with the same spouse.

You are correct.  But, I was referring to the answer given by the IRS, quoted below, which is wrong for two reasons.
Quote:
"Where the USC is married to a non-USC and you both live outside the US, your filing status should be Married Filing Seperately. "

1. You have the right and choice to file MFJ regardless of place of residence.
2. Planning for the future, when applying for citizenship, that will be one for the first things to
be reviewed by the USCIS (former INS):did you file jointly? If you didn't, there better be a very good reason for it.

2. Planning for the future, when applying for citizenship, that will be one for the first things to
be reviewed by the USCIS (former INS):did you file jointly? If you didn't, there better be a very good reason for it.

I am confused. What is the source of the above statement?

I don't understand why any married couple would have to provide a reason for not filing jointly.  It's quite common for a husband and wife to keep their finances separate.

2. Planning for the future, when applying for citizenship, that will be one for the first things to
be reviewed by the USCIS (former INS):did you file jointly? If you didn't, there better be a very good reason for it.

I am confused. What is the source of the above statement?

I don't understand why any married couple would have to provide a reason for not filing jointly.  It's quite common for a husband and wife to keep their finances separate.

My thoughts exactly, sweetpeach. Whether you filed as 'MFJ' or 'MFS' you still filed as MARRIED.  I'd like to see some sources for that statement, but I would be surprised if there were any.

Hi Britishguy

I think a good place to start as any is to gather up all your paperwork thats associated with the figures you need to complete the returns. Get them into order.

I then suggest you look at software such as Turbotax which allows non accounting types to fill in and complete their own returns. I used to work for Intuit & spent some time on the UK equivalent (TaxCalc - before it was sold off) and the above is pretty much what I and our team would suggest to those like yourself who are at the 'tearing out of hair' stage!

Software like this allows you to go through a simple question and answer type procedure and asks you to fill in amounts from your paperwork - for those who have a little more experience, you can fill the forms as if they were on paper (facsimile paper returns within the software)

The great thing is that plenty of advice and notes comes with the software! these notes and tips can really help. Minimal cost too!, personal tax return software isn't expensive - I think in the US Turbotax for your scenario should be around $40-50.

Finally, if your tax scenario is complex, it's always a good idea to speak to a professional accountant familiar with US and/or UK tax to get more guidance to help you.

Hope this helps a bit!
Cheers, DtM! West London & Slough UK!

apols if i'm taking this thread off track, but just had a quick question....  can turbotax effectively deal with more complex tax situations, i.e. i am a director of a foreign corporation and have all the personal/corporate disclosures associated....

cheers

Okay here's the situation.

My wife is USC and and I am UKC we have been married for 7 years. Due to the fact that I will be applying for a Green Card, we've only just realised that she needs to file tax returns for last 3 years (based on Embassy website information - correct me if I'm wrong).

I've read up on previous posts and want to clarify what's required for my wife to file.

I think it's 1040 and 2555 EZ as married filing separately . Submit 3 versions for the last 3 years ?

What figure is used on 1040 for income. Is it wages after income tax paid here or prior to any deductions of tax and NI ?

It's all a litle confusing and I canm't really afford to engage a US tax specialist.

Thanks

David