Anyone want to talk me through my taxes?

I'm hoping my CPA can cope with all this when the time comes!  I know she's dealt with someone who moved to New Zealand.  I would pay almost anything to have someone else figure it all out 

Jewlz- Sounds like you are on the right track. I did the same thing as you last year--just worked my way through the IRS publications until I figured out what I was doing. The good news is that once you figure out how to do it, it doesn't take much time going forward unless your circumstances change significantly.

Yes, married filing separately is likely how you will want to file. You can just write 'non-resident alien' in where it asks for your spouse's SS#.

If your income is under the foreign earned income threshold, it won't really benefit you to bother with foreign tax credits from my understanding.

Other things to consider: Do you have interest to report from the US? Do you have UK bank interest to report? This all goes on schedule B. From my understanding, there is no threshold for reporting UK interest, so you have to report it even if it is a small amount. Do you have a UK pension? I don't, so can't really help you there.

If you have not had $10,000 combined in foreign bank accounts at any point during the year, you do not have to file the TD F 90-22.1. You can also check 'no' to the question 'Do you have any foreign bank accounts?' at the bottom of schedule B, since in the fine print it says you only have to check yes if the balance is aggregate balance is greater than $10,000.

Jewlz- Sounds like you are on the right track. I did the same thing as you last year--just worked my way through the IRS publications until I figured out what I was doing. The good news is that once you figure out how to do it, it doesn't take much time going forward unless your circumstances change significantly.

Yes, married filing separately is likely how you will want to file. You can just write 'non-resident alien' in where it asks for your spouse's SS#.

If your income is under the foreign earned income threshold, it won't really benefit you to bother with foreign tax credits from my understanding.

Other things to consider: Do you have interest to report from the US? Do you have UK bank interest to report? This all goes on schedule B. From my understanding, there is no threshold for reporting UK interest, so you have to report it even if it is a small amount. Do you have a UK pension? I don't, so can't really help you there.

If you have not had $10,000 combined in foreign bank accounts at any point during the year, you do not have to file the TD F 90-22.1. You can also check 'no' to the question 'Do you have any foreign bank accounts?' at the bottom of schedule B, since in the fine print it says you only have to check yes if the balance is aggregate balance is greater than $10,000.

Sweet! Thanks, Kate... it wasn't really as hard as I thought it would be considering our meager means... lol. No, we don't have any interest in any place whatsoever, and I have no pension or anything of the like. Looks like I can skip straight to the end now that I have filled in the 2555-EZ. Cool! 

I think I read somewhere that it is unwise to file "single" if you are indeed married (even if your spouse doesn't have an SSN and never intends to live in the US), as you are not being truthful on an official/government form - i.e. perjury...  Can anybody confirm this?  It would make it a lot easier for me if I could just file "single", but I'm a bit worried it would come back to bite me somehow...

Well, I've been filing "single" for the last dozen years (from US).  It was at the suggestion of various HR depts. and my CPA never had any issues with it.  DH is a nonresident alien (don't you love that)

I think I read somewhere that it is unwise to file "single" if you are indeed married (even if your spouse doesn't have an SSN and never intends to live in the US), as you are not being truthful on an official/government form - i.e. perjury...  Can anybody confirm this?  It would make it a lot easier for me if I could just file "single", but I'm a bit worried it would come back to bite me somehow...

Yes, if you are married, you cannot file 'single.'

However, you can file 'married filing separately.'

I went to the IRS at the embassy with very similar tax questions.  According to what they told me, you should file "Married filing separately" and you only have to concern yourself with the tax credits and deductions if you made over the $87,500 (I think it is).  So, to me, it sounds like what you are doing with your foreign income is correct, but you might want to check with the IRS on the filing as single if you are married issue.  You can e-mail them at irs.london@irs.gov or go in person to talk to them on Tuesday, Wednesday, or Thursday from 9-4.  http://www.usembassy.org.uk/irs/index.htm

On the W-4 form from my current employer, there are only 2 things to tick: single/married.  But there is also another box saying "Check here and select single status if married but withholding at single rate"  I can't remember how they put it on the actual IRS tax return form.

but you might want to check with the IRS on the filing as single if you are married issue.  

There is nothing to double check.  If you are married, you cannot file that you are single.  Period.

There are a million places on the IRS website that state this.  Here is one:
http://www.irs.gov/newsroom/article/0,,id=105098,00.html

I agree 100% with Sara.  You sign the returns under penalties of perjury.  The only circumstance I can think of is a same gender civil partnership or marriage which is something not recognised at Federal level.

If you filed incorrect returns in the past you have a one-time opportunity to make things good with capped penalties under the current voluntary disclosure initiative.

OK, so I cannot file single. Good thing I haven't mailed off my stuff yet. I suppose I must check "Married filing separately" and just write that he is a non-resident Alien on my tax form?

Yes - you'd also report joint bank/security accounts on the FBAR form.

Yes - you'd also report joint bank/security accounts on the FBAR form.

Would I still do this, even though the total of our accounts wasn't $10,000 or more at any point through the year? And we haven't earned any interest... from what I read about the form, it seemed we wouldn't need to fill it in this time. Thanks!

Ok, I have just gotten off the phone with the IRS and now have more questions than answers! Let me walk thru my situation and see if you guys can help me out.

I moved to the UK on 13 June, 2008.
I married my UK hubby on 6 Sept, 2008.
I worked in the US, but have not had any income in the UK.
I have a child and have always been eligible for EIC in the past as head of household.

The IRS says I must file as married filing separately, but am eligible to file as HOH.
DH does not have a TIN.

I am using TaxAct to file, but if I file as married, they require a TIN for hubby.
TaxAct also states that I am not eligible for HOH filing status as I was out of the country for more than half the year.

Ok...so can I file as single, HOH? It seems I read in another post that I could, but IRS says I am breaking the law if I do.
If so, do I have to do it on paper?
Has anyone else run across this problem before?


Thanks for your help!