Last minute tax help needed!!

I know I've left it to the last possible minute (my fault really) but that's probably because I started doing them months ago and got really confused.  Now I'm even more baffled!!  Any advice/help would be appreciated.

So I moved to the UK in September 2010 and began working in December so I have very little UK income to add to my return.  The problem is I decided to file jointly with my UKC husband (married in 2010) so I could take advantage of the credits for paying university tuition and student loans.  We elected to attach a statement and a W7 applying for a ITIN for him (we plan to move back to the US in a few years time).  This would all be relatively simple enough except for the fact that he was self-employed for all of 2010. 

Neither of us made a great deal of money in either country (well below the threshold) but since I haven't been in the UK for a full year yet I don't think I qualify for the exemptions?  Will we be stuck paying lots of self-employment taxes on my husband's UK income?  I'm considering just filing separately even though I will probably get a smaller refund because this seems like such a hassle.  Or is it worth trying to sort it out myself or finding a tax preparer at the last minute to help me?  I've always done my own taxes with no problem but this seems needlessly complicated!

If I file jointly, I'm using forms: 1040, 2555 (should there be one for each of us?), the Change of Address form, W7 (and notarized copy of his passport) and the DC400 (NC State return).  Do I have to include payslips from my UK work and my husband's UK tax return as proof?  Do I need to file Schedule SE for his work? 
 
Or should I just file separately this year???  HELP!!

Thanks,
Talya

Hello

The US/UK totalization agreement eliminates dual payment of social security. So since he's paying UK national insurance, he won't need to also pay SE tax.

Since you're expecting a refund, it won't matter too much if you miss the deadline; late filing penalties are tax related, so if no tax is due, then there are no penalties.

I doubt you should be filing a 2555. Since UK personal income tax is higher than US tax you're usually better with a 1116; even more so if you want to get refundable credits.

You do not need to send your husband's payslips or UK tax computations, although you should keep them in case of an audit.


Regards

Andrew

If you are elcting to file jointly you will need to file a jointly signed election under IR Code section 6013(g).

If you want to claim the foreign earned income exclusion you are too early as you do not have a qualifying period yet.

File an extension on Form 4868.