Is it necessary to file US tax returns if you're not working or earn under $80K?

I may have been given bad advice regarding filing US tax returns and wanted to clarify the rule on filing. My dad was a CPA in the US and told me that because I was only earning a very small amount per year, well below the $80,000 threshold (or whatever the amount now is), I didn't need to file. He never really dealt with foreign earned income, but said that is what he understood the law to be. If the IRS were to ever look into my earnings, they'd see I earned a very small amount and I would be fine, as I didn't owe any taxes in the US. I only earned around £5,000-£6,000 per year when I was in the UK.

I did file a return in 2009 (worked half of 2008 in the US) and 2010 (UK earnings in 2009), but haven't since. Currently, I'm in Canada and don't work at all, so haven't earned anything since March.

Looking into the rules, it seems like I need to file regardless of what I earn, but I was hoping someone could offer advice. I'm about to renew my US passport, and saw something on the form that mentions taxes. I don't want my application to cause them to look into whether or not I've filed, and for them to see that I haven't in the past two years.

If you are making below a certain about, you do not have to file, but that amount is something like £6k, not $80k. You may want to look into it a bit deeper to see if the years you were working you made over the threshold.

I know the threshold where I would owe taxes is somewhere around $80,000 - or probably more, as I know it's been raised.

Does anyone know the threshold for actually filing?

I found this online, but still wonder if there is a threshold for filing, as missjoules has mentioned. I do know that I owe no taxes, though.
You still should file a return with the U.S. every year, whether you have income or not. You are not legally required to do so if you don’t owe U.S. taxes, but it’s an important preventative measure as there is a Statute of Limitations on tax disputes.

Another thing I've come across that concerns me is this:

The last but certainly not least important thing you need to know is that if you have more than $10,000 or the equivalent in a foreign bank account, you must report it to the U.S. Treasury in a foreign bank account report (FBAR).

Does this affect me if this is my husband's money, not mine? The account is in both of our names, but none of the money was earned by me.

If an account in your name has over $10,000 at any point, you must file an FBAR. It doesn't matter who has earned the money.

Does anyone know the threshold for actually filing?

The filing threshold requirements can be found in publication 1040, chart A on page 8:

http://www.irs.gov/pub/irs-pdf/i1040.pdf?portlet=103

These apply no matter where in the world a US Person is located.

If an account in your name has over $10,000 at any point, you must file an FBAR. It doesn't matter who has earned the money.

+1
If you have 'signature authority' over one or an aggregate of foreign accounts (your name is on the account, and you can add, transfer, or withdraw funds for example) that total more than $10,000 during the year, it is to be reported on an FBAR. For joint accounts, who contributed the money is of no bearing, and the highest amount the account contained during the year must be listed. 

It sounds as if you are only delinquent for filing for 2010 and 2011 and FBARs for the same years?

You may simply want to file these with a reasonable cause argument if there is no income tax involved.

Hello,

Unfortunately you were given incorrect advice - the minimum threshold for US tax reporting is around $9,000. For full details see this article we wrote (in human language http://www.taxesforexpats.com/expat-tax-advice/minimum-filing-requirements.html] [url]http://www.taxesforexpats.com/expat-tax-advice/minimum-filing-requirements.html[/url]

The good news is that IRS has just announced a new program for people in your position - who probably do not have any tax due but are delinquent. It requires filing of 3 years of tax returns (and 6 years of FBARs if you one was required): http://www.taxesforexpats.com/services/new-irs-program-delinquent-taxes.html

Full details are coming shortly but from what we know already it's indeed a very good option.

The new "Overseas American Program" is being launched by the IRS on September 1st. It will only be of use to a limited class of individuals and anyone entering it would be wise to take professional help.

I would always suggest a dual US/UK qualified adviser - and for this program someone who has significant experience in IRS disclosure programs. If you send me a message privately I would be glad to let you know who specialises in this work. 

The new program has significant risks and may not be suitable in these specific circumstances as you used to file (so you knew you had to), but simply gave up. The IRS could interpret this as wilfull behaviour, which is why a robust reasonable cause argument may be a better route in such circumstances.

It sounds as if you are only delinquent for filing for 2010 and 2011 and FBARs for the same years?

You may simply want to file these with a reasonable cause argument if there is no income tax involved.

If the tax filing threshold is $9,500, it looks like I'm fine. I qualify as "single" since my husband isn't a US citizen, is that correct? I'll need to look into the FBAR situation, though.

Thanks!

If the tax filing threshold is $9,500, it looks like I'm fine. I qualify as "single" since my husband isn't a US citizen, is that correct? I'll need to look into the FBAR situation, though.
Thanks!

Nope, you're aren't single since you are married (even if your husband doesn't need to file) - you're married, filing separately

Nope, you're aren't single since you are married (even if your husband doesn't need to file) - you're married, filing separately

So the tax threshold for me is now $3,000?!?!

This is really making me mad... I'm on the verge of renouncing my damn citizenship over the US's tax laws! Argggghhh!

The 2011 filing threshold was $3700 for married filing separately. Different thresholds may apply for other years.

If you had very low income, and are under the FIE amount, you will likely not owe any tax and you may not need to engage a professional to prepare the back returns. If you have any tolerance for paperwork, it's not all that horrendous.

I know the professionals will disagree with that, but it's my opinion. When income sources get complicated, then it's time to pay for the professionals. Most of us don't need one IMHO.

What is the rule with FBAR? Is it if there is over $10K in my account at any time I need to report it, or is it only necessary to report if it's in there for an extended period of time? Say if I have over $10K deposited into my account and within a few days, I put most of that into my mortgage and it's now under $10K, do I still need to report that balance?