How/what to file

Background: I'm a US citizen, my husband is a UK citizen (he was a green card holder in the US).  Up until November 2008, we lived in America.  My husband had been working in America from September 2007 until August 2008.  We filed taxes using an accountant for 2007.  We moved to England in November 2008, but neither of us has been working or had any income since we got here.  Total for 2008, my husband didn't make the minimum to be required to file taxes, but we want to anyway in case we'd be getting anything back.

What do we need to do exactly?  I've asked my grandmother (where all our US mail is sent) to look out for his W-2s to send to us.  What's the next step?  And would we need to use our UK address, or continue to use my grandmother's address (in America)?  Is there anything special we'd need to do since we're no longer in America?  Or is it pretty straight-forward since there's no foreign income yet?  Thanks!

You do not state what income you had after moving to the UK (eg interest, dividends, capital gains).

If you had such things, your husband's share would arguably be "resourced" as foreign source on your US return so he can claim credit for UK tax.  Your share would be resourced only if you will not be claiming the remittance basis in the UK - ie if the UK will be taxing worldwide income. [Your husbnd is domiciled within the UK while you are not.]

You doubtless have a part-year State return to file.

Beyond that, your US returns would be similar to before, worldwide income, TD F90-22.1 if you qualify, refundable child credits if you qualify etc.

If you have US investment income you will have to remember to report this on UK tax returns as well.

We moved to England in November 2008, but neither of us has been working or had any income since we got here.

We have had no income whatsoever of any type since moving to England-- no interest, no benefits, nothing.  Are you saying we need to file taxes in the UK too?  I'm not quite sure I'm understanding your response.  All of our money is in American bank accounts still.  We don't have any investments anywhere.  The only income we had in 2008 was when my husband was working in America from January till August.

If the bank accounts in America paid no interest at all then you I can see that you had no income.

If you brought some of that American money to the UK you could still have made taxable foreign currency gains as Sterling fell.  However if you had no income anywhere else, you would not be claiming the remittance basis so would each qualify for the UK's annual capital gains exemption and thus you would not owe UK tax on any currency gains.

In this situation HMRC would not normally expect to receive tax returns.

Thanks.  I was mostly asking in my original question about what I need to do to file our US taxes (sorry, I should have specified).  I'm just unclear as to whether there's anything special we have to do since we're no longer residing in America.

If you are staying in the UK for a while you must consider making voluntary NI contributions, even if you earn under the threshold to be compelled to.  Otherwise, if either of you get ill, or you fall pregnant, you may find yourself with zero assistance.


Vicky

Even though my husband is currently job-hunting?  (He has been since the day we got here and FINALLY has a couple prospects we'll find out about this week!) And I already am pregnant-- that doesn't mean trouble does it?  I'm due in 23 days!

You may want to contact HMRC to ask.  There is no trouble, just the possibility of missing out on some benefits to which you might be entitled.


Vicky

Thanks Vicky, I'll look into it