Haven't filed Since moving to the UK! Help!

Since moving here in 2008, I have been avoiding the inevitable, but I must now get cracking on doing my taxes. Its scaring the hell out of me, and I should not have waited this long to do it.

Some background info:
*Married August 2008 in US
*Moved to UK September 2008
*Got my ILR November 2010
*Working full-time in the UK since September 2008
*Earning under the $90,000 threshold (jointly)
*Been paying back student loans since...er...2009.
*No investments, and no savings in our bank account over $10,000

I literally have not a clue where to start. What do I do with my W-2s from working in the US for the 2008 Tax year, from April to August? Do I need to combine this with my earnings from the UK of 2008/09?

Do I need to file jointly with my wife, or only submit my earnings? Does she need

What about this foreign tax credit / earned income exclusion business?

What forms do I need over here? Just my P60?

Im sure everyone here gets bombarded with these questions, but Im really afraid I'm going to screw this up!

You might find this guide helpful:

http://www.uscms.org/uscms_at_work/working_cern/taxes/ExPats%20Guide%20To%20Taxes%202009.pdf

Slightly dated but still gives a good overview.

Just be thankful you never had more than $10K or your problem would be a lot worse.

Thanks, thats actually what I was looking for!

Yeah we don't own a house, no investments, none of that stuff. A married couple, earning less than the threshold, etc. It's not going to be fun but at least it won't be very complicated, thank goodness!

I've read that some people have lived here over 20 years and NEVER filed! Im glad Im doing it now rather than later on down the road!

This is really helpful, thanks for the post! 

I've lived here for 7 years, and only just realised (as my husband is applying for a green card) that I need to file US income tax.  I've had no contact from IRS and was told by HMRC that everything was fine.

Anyway, does anyone know what the first step is?  Do I contact IRS through the Embassy?

More than a bit anxious 

If you have not filed for 7 years you could file by 31 August under the OVDI for reduced penalties.
http://www.irs.gov/newsroom/article/0,,id=234900,00.html

I use TurboTax, it tells you what to do with US earnings and overseas earnings. It doesn't make things as clear as it could for foreign filers -- I didn't know I had to file an annual FBAR in addition to taxes until I saw it on this forum and now I'm 3 years behind!

Someone on the site recommended Greenback Expat Tax Services in the US to help. I haven't tried it yet. They charge $329, far less than I've seen from UK services.
http://www.greenbacktaxservices.com/

I use TurboTax, it tells you what to do with US earnings and overseas earnings. It doesn't make things as clear as it could for foreign filers -- I didn't know I had to file an annual FBAR in addition to taxes until I saw it on this forum and now I'm 3 years behind!

Agreed, though TurboTax will generate a correctly filled out FBAR for you, that bit of the application is tucked away far too deep and you really have to know where to look.