Do I need to file tax returns in USA while living in UK?

Quick question regarding FBAR:  If I've had more than $10,000 in an account that has *only* my husband's (He's a UK citizen) name on it do I have to file (I'll be filing as married filing singly)?

Quick question regarding FBAR:  If I've had more than $10,000 in an account that has *only* my husband's (He's a UK citizen) name on it do I have to file (I'll be filing as married filing singly)?

The bold is mine. Surely that money is your husband's and not yours. If the account is solely owned and managed by your husband then there is no need to include it on your taxes or FBAR if you file MFS.

The bold is mine. Surely that money is your husband's and not yours. If the account is solely owned and managed by your husband then there is no need to include it on your taxes or FBAR if you file MFS.

Don't know why I went with the past tense, as it was hypothetical.  I may move some money from my US account into a savings account we will open here in the UK.  I figured if we put only my husband's name on the account in the UK I wouldn't have to bother with filing FBAR.
It's really only a technicality, right?  Because when you're married all the money belongs to both the husband and wife (that's how we see it anyway).

Don't know why I went with the past tense, as it was hypothetical.  I may move some money from my US account into a savings account we will open here in the UK.  I figured if we put only my husband's name on the account in the UK I wouldn't have to bother with filing FBAR.
It's really only a technicality, right?  Because when you're married all the money belongs to both the husband and wife (that's how we see it anyway).

You're sort of shooting yourself in the foot by using terms like we and arguing that you have an interest in the account. If the account is only owned by your husband and you cannot access the money or manage it yourself then I don't think you would need to file FBAR.

You're sort of shooting yourself in the foot by using terms like we and arguing that you have an interest in the account. If the account is only owned by your husband and you cannot access the money or manage it yourself then I don't think you would need to file FBAR.

Thanks, nun.  I'm not really arguing anything, just making sure I'm not doing anything illegal, that's all by not filing FBAR.

for FBAR, you must have signature authority. Actually, technically it also includes a 'financial interest' as I understand it, but if your name is NOT n the account, it can't be linked to you

If I had some income that I wanted to hide from the authorities, I could have a foreign friend open an account and keep the money. The friend could spend the money on my behalf, buying me goods and services. Now if this arrangement were to come to light, the fact that my friend's name was on the account would be no defence at all. In fact, it would make it worse.

Now substitute UK spouse for foreign friend and I think you can see the problem.

If I had some income that I wanted to hide from the authorities, I could have a foreign friend open an account and keep the money. The friend could spend the money on my behalf, buying me goods and services. Now if this arrangement were to come to light, the fact that my friend's name was on the account would be no defence at all. In fact, it would make it worse.

Now substitute UK spouse for foreign friend and I think you can see the problem.

I see what you're saying.  It's not loads and loads of money, just didn't want any more hassle than necessary, but in light of your comments Weller, we may as well make the account a joint one and file so as not to be perceived as hiding or evading.

Just remember that FBAR is a reporting form; it goes to the Treasury Department, not the IRS. In and of itself, filing a FBAR does not generate a taxable event.

If you are filling as 'married filing separately', your share of interest earned on a foreign account is reportable income in the US just like any other interest income. You may or may not be required to file additional forms with your US return (likely not, if a small amount of money).

Most of this stuff is only onerous for high-income folk with lots of investments, retirement accounts and so forth. For the rest of us its just a lot of paperwork, but more annoyance than anything.

So am I understanding this correctly? If you make more than 9,000 pounds you have to file taxes and the same amount in a bank account you have to fill out the FBAR?  Is that correct? Sorry but it's a bit confusing to me.  Thanks for the replies

It's really only a technicality, right?  Because when you're married all the money belongs to both the husband and wife (that's how we see it anyway).

Just for general information,  this statement is not correct. England doesn't have community property. Your money is belongs to you and his money belongs to him. This issue becomes relevant when people separate, and they're often surprised to find this out.

So am I understanding this correctly? If you make more than 9,000 pounds you have to file taxes

It depends. £9,000 today is equal to roughly $14,400. (It will be a different exchange rate at the end of the year, but let's use this as a rough guide). Have a look at the chart on the bottom of page 3 under "filing status" on the following site:
http://www.irs.gov/pub/irs-pdf/p54.pdf
Determine which 'filing status' you fall under. (Are you single and under 65? or over 65 and a qualifying widow? for example) If $14,400 is higher than the threshold for your given filing status, then there's a chance you will have to file a tax return.
 

....and the same amount in a bank account you have to fill out the FBAR?

$14,400 is far above the FBAR threshold of $10,000, so yes, you would have to file an FBAR.

I'm confused about the FBAR "exceptions": "Certain foreign financial accounts jointly owned by spouses"

Does that mean you don't have to report any part of joint accounts?  What do they mean by "certain" accounts?

Is it a good idea to keep the US citizen's money separate from UK spouse's or not?

It is unclear which "exceptions" you are referring to. The "final rule" is the only relevant Regulation on the subject and can be found here (pages 12-13 are the relevant language with the earlier pages an explanation):
http://www.gpo.gov/fdsys/pkg/FR-2011-02-24/pdf/2011-4048.pdf

Just for general information,  this statement is not correct. England doesn't have community property. Your money is belongs to you and his money belongs to him. This issue becomes relevant when people separate, and they're often surprised to find this out.

Wow, thanks marty.  Didn't realize this.