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Topic: Confused senior!!!  (Read 1512 times)

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Confused senior!!!
« on: February 17, 2015, 12:14:09 PM »
My husband is US citizen and I am UK citizen. We live here in England and I we are doing his taxes and need info.
He is retired and has his social security paid into bank in USA and he has some interest from UK banks.
Which Tax return do I need to fill in 1040EZ or 1040A.
He files married filing separately and claims me as a deduction - is this right?
We file the FBAR form online and he is under the limit for the other .
What do I need to know.




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Re: Confused senior!!!
« Reply #1 on: February 17, 2015, 04:34:02 PM »
I'd file a regular 1040.

Your husband can claim you as an exemption as long as you have no US source income.

Remember that your husband's SS is only taxable in the UK....DO NOT include it on the 1040, but he needs to file a UK self assessment so it can be taxed in the UK.

Your husband is liable to US tax on his UK bank interest, but can claim a credit for UK tax paid.


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Re: Confused senior!!!
« Reply #2 on: February 17, 2015, 06:10:33 PM »
Of curiosity, why doesn't he have his SS paid into a UK bank account? Ours goes in promptly on the 3rd of each month, with no fees and the exchange rate is the best you can get (not a 'tourist rate'). You just need to contact the SSA and give them details of the account - AC number, Bank Name/Address, IBAN, BIC etc.

Since the US SS is only taxable here in the UK, it makes it much easier to file the UK Self Assessment as you know the exact 'value' of each payment in GB£. (And don't forget that only 90% of his SS is taxed by the UK, not 100%).

You will put the SS on the 1040, but in the taxable amount line (the only line that counts) you put $0. In order for him to claim you as an exemption, you must have a SS# or ITIN, and as nun said, you must have no US source taxable income.

Not sure what you meant by "he is under the limit for the other".
Married December 1992 (my 'old flame' whom I first met in the mid-70s)
1st move to UK - 1993 (Letter of Consent granted at British Embassy in Washington DC)
ILR - 1994 (1 year later - no fee way back then!)
Back to US in 2000
Returned to UK July 2011 (Spousal Visa/KOL endorsement)
ILR - September 2011
Application for naturalization submitted July 2014
Approval received 15-10-14; ceremony scheduled for 10 November!
Passport arrived 25 November 2014. Finally done!


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Re: Confused senior!!!
« Reply #3 on: February 17, 2015, 06:50:08 PM »
His US return should be very similar to last years; except the Form 8965 which is new.


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Re: Confused senior!!!
« Reply #4 on: February 17, 2015, 08:37:48 PM »
Not sure what you meant by "he is under the limit for the other".

I took this to mean for the IRS filing of Statement of Foreign Financial Assets (8938) which is a much higher $ threshold for reporting than FBAR.
Dual USC/UKC living in the UK since May 2016


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Re: Confused senior!!!
« Reply #5 on: February 18, 2015, 07:14:26 AM »
You're probably right durhamlad; I've been doing the FBAR for years, but never filed the 8938. Boris Johnson, I'm not......  ::)
Married December 1992 (my 'old flame' whom I first met in the mid-70s)
1st move to UK - 1993 (Letter of Consent granted at British Embassy in Washington DC)
ILR - 1994 (1 year later - no fee way back then!)
Back to US in 2000
Returned to UK July 2011 (Spousal Visa/KOL endorsement)
ILR - September 2011
Application for naturalization submitted July 2014
Approval received 15-10-14; ceremony scheduled for 10 November!
Passport arrived 25 November 2014. Finally done!


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Re: Confused senior!!!
« Reply #6 on: February 18, 2015, 05:00:17 PM »
You're probably right durhamlad; I've been doing the FBAR for years, but never filed the 8938. Boris Johnson, I'm not......  ::)

So far I've also managed to avoid the delights of having to file an 8938.  FBAR is bad enough even though you feel like you are treated as a suspect these days while filing through the Financial Criminal Enforcement website.  Definitely feel guilty until proven innocent.
Dual USC/UKC living in the UK since May 2016


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