Help! I paid full PAYE and the US is still saying I owe tax

I am filing my 2010 return and I think I may have input my data incorrectly.  I am a US citizen who has lived in the UK (London) for all of 2010.  I did return back to the US for vacation for 15 days during the year but did not work while there.

For 2010 I earned gross wages of c.$240K on which I paid 35% tax to the UK. In addition I paid c.$8K in NI.  During the year I incurred c.$25K of expenses related to the rent and utilities.  I had net capital losses of c.$5K.  I also had c.$5K of tax prep fees for past years. At not point did I live in any country other the UK so I should have no state income tax liability.

According to TurboTax for 2010 I have a liability for $25K.  Given that I have paid 35% tax in the UK coupled with the various deductions I should be afforded I am confused as to why I have anything more than an immaterial tax liability.  I think with the AMT that is suggested I'd be at 45% tax, which is miles higher than the US brackets.  I am guessing I entered something incorrectly but can anyone provide any guidance to me?

I have no children, no dependents, I do not own a home, own my own business or have an of the more apparent deductions.

Thanks in advance for any assistance!

Did you complete the foreign tax credit pages? These are on form 1116.

YOU ARE A LIFE SAVER!!!I think that may do it.  It appears as if it was taking a Schedule A deduction for me. 

I need to go through my return today but it appears my liability is no $0. 

Strangely enough I must have used the Sch A last year but on much lower basis so everything worked out okay.

You might owe US tax on things the UK does not tax such as employer sponsored UK pension plans or monies held in ISAs, although probably not as much as you figure right now.

Also just a reminder DON'T PANIC
As Merrican expats we get a automatic extension till June 15 to file our forms
Just so ya know 

Also just a reminder DON'T PANIC
As Merrican expats we get a automatic extension till June 15 to file our forms
Just so ya know 

Yes, but I thought if you owe money your payment is still due by the tax deadline (April 18 this year)? It's only the forms themselves that have a later deadline as I understand it (though I could be wrong). I think you have to at least determine if you'll be owing money by the normal deadline and send off your estimated payment.

Might be worth it to pay the 330 bucks to have it done by an accountant.
It was worth the piece of mind to me

Hmmm good question. Since im a lowly paid NHS nurse I never ever  have had to worry about paying.. so i dunno sorry

Yes, but I thought if you owe money your payment is still due by the tax deadline (April 18 this year)? It's only the forms themselves that have a later deadline as I understand it (though I could be wrong). I think you have to at least determine if you'll be owing money by the normal deadline and send off your estimated payment.

Might be worth it to pay the 330 bucks to have it done by an accountant.
It was worth the piece of mind to me

Where do you get it done for $330? I'd heard prices more like £600 to get expat taxes filled out. I'd consider handing this headache off to someone next year for $330.

I will PM you the guys I used but I got him off here Greenback ;-)

Hi!

It appears you are over the federal exemption limit so you may owe federal taxes depending on your foreign tax calculation.  Also, you may owe state taxes it just depends which state (residency rules vary by state).

Yes you are correct, an extension to file is not an extension to pay your taxes.

As suggested it may be worth to get a tax accountant.

Good luck!