Figuring out my taxes: 2010- Present

Background Information:

I moved to the UK as a Student in September 2010.  That tax year my taxes were done via a 1040 at both the Federal and State level (I was a resident of NC).  Banking: I opened a current account in the UK, it was always below the filing limit, and therefore not declared though an FBAR.  Paid tuition fees, and received half of a scholarship.  Did not claim deductions/declare either of these.

In 2011, I continued to be a student; I paid tuition fees, and got the other half of my scholarship.  I then moved from Nottingham to London. I started working at Job 1: from October 2011 (until I left in July 2012).  I did not file taxes, because I earned little (Gross= £1,600).   Banking:  I opened a Joint Current Account, and a Cash ISA.  The combined maximum of all accounts was below the filing limit, and any interest was not applied in my ISA until 2012.

In 2012, a few things happened.  In July 2012, I got married (in the UK to a UKC), and started working full-time at Job 2:  (July 2012 to present).  I’ve also been paying off my student loans since January 2012 (Interest paid $1,300, Form 1098-E).  Banking:  Through the combination of accounts (current/cash ISA/joint current), the maximum balance was at just over £5,000 (which by my estimates will still be less than the $10,000 limit- I’m not sure the exact rate to be used, but I’m guessing it’s something around £1 = $1.60). 
Income:  My total income for 2012 comes through a combination of Job 1 and Job 2; 
Job 1 earnings for Jan2012-July2012 = Net £3,700 (Gross (estimation) = £4,300 );
Job 2 earnings for July2012-Dec2012 = Net £8,700 (Gross= £10,500).
Interest earned on my Cash ISA= £30.00

Questions:
I had originally concluded that I wasn’t required to file for 2011, since I was below all filing requirements, but is it a good idea to file retroactively?  Does it even matter?

For 2012, I will definitely have to file.  Going through various websites and this forum, it seems somewhat self explanatory, and am going to attempt this myself.

But, I’m struggling to decide how to file: “Married filing Jointly” or “Married filing Separately”  The main reason for this in order to claim back the $1,300 I’ve paid in student loan interest, I have to file jointly (as per the 1040 Instructions, Page 35. Exception: Pub 970- if you file Form 2555/2555EZ, or 4563- but going through Pub 970, I can’t see what the exception is…can I file separately and still claim this deduction). 

Apart from doing filling in both sets of forms to see which works better for my situation, can anyone give a quick explanation as to the pros/cons of one or the other?  Would I end up getting all $1,300 back if I file jointly versus separately?  Can I even file Jointly if my OH has never lived in the US?   His gross income for 2012 is probably approximately £25,000, and he has his own current account, but as an NRA, I’m not sure the amount in this account matters whatsoever.

Also, I think for tax domicile, it looks like I’ll only have to file with the federal government. I did cast my vote for the most recent presidential election as an NC absentee voter, and have an NC driver’s license to use if/when I’m in the US.  My bank accounts are based in NJ.  Can someone please correct me if I’m wrong and I do have to file in one of these states? (I moved from NJ to NC in 2006, and have filed state taxes in NC since then).

As far as which forms to file—can someone tell me if these are correct?
Form 1040 (just the standard 1040 is what I used from 2008-2010, not A/EZ/etc) I obviously don’t have a US-W2, and won’t receive a UK-P60 until April maybe?, The 1040 Instructions refer to Teletax Topic 154, which refers to Form 4852.
Form 4852- Substitute for Form W-2.  But I’ve never seen anyone mention this here before…
Form 2555 (or EZ?, with Schedule B) – for reporting foreign earned income, as well as interest from ISA (only £30.00, so does it need to be reported), and Schedule B-for foreign accounts
Form 1116- Foreign Tax Credit

Is this it?  I've just spent ages looking at all these tax forms on the IRS website, and think this looks about right, but am probably still confused about a few things--can anybody confirm or clarify?  Or tell me if there's something I've missed?

Sorry for the HUGE post.  I feel like this:

Might want to peruse a couple of other threads to get more of an idea of what you want to ask You might get a better response if you're more specific

Your MFJ/MFS quandry is discussed here for instance - http://talk.uk-yankee.com/index.php?topic=78924.0

Thanks, CB.  I somehow overlooked that particular thread-  thanks for that!

I think I'll just print a few copies of all the relevant forms and fill them out under the separate filing statuses to figure out which works the best for us. Having both will also help my OH (the financial analyst one...) decide which route he prefers to take.

I'll start with the 2012 taxes and depending on how fed up I get, potentially throw in the 2011 ones for good measure. 

One thing I can say - you broke ties with NJ when you moved to NC in 2006. NC isn't known for going after you, but just by having a driving license you can be considered to still have 'ties' that imply you might return.

You might want to search tax commissioner rulings, or write to the state to get a ruling based on your specific circumstance.

I would be reluctant to file federal MFJ given your husband's income, plus the necessity to get an ITIN, but your best bet is to figure it both ways and see what works best. Remember that a short term tax benefit (the student loan interest) of MFJ may not be a long term benefit given that you are now working.

I would be reluctant to file federal MFJ given your husband's income, plus the necessity to get an ITIN, but your best bet is to figure it both ways and see what works best. Remember that a short term tax benefit (the student loan interest) of MFJ may not be a long term benefit given that you are now working.

I would agree there, we would have been absolutely destroyed this year if we'd taken the short term tax benefit a couple of years ago and done MFJ.