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Topic: Form 2350 extension  (Read 883 times)

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Form 2350 extension
« on: January 05, 2019, 12:47:34 PM »
Hey y'all! Happy New Year!

I have a couple of questions regarding my 2017 tax extension and I'm hoping I'll be able to get some answers or insight!

Basically, I moved to the UK in June 2017 - prior to that, I was employed in California January to June. I worked sporadically at a pub in the UK from August to December. When I went to file my tax return, I found that I didn't meet either of the residency tests and was going to be taxed on my UK income. Well, I was expecting a sizable return from my employment in CA, so I obviously didn't want that to happen.

I submitted Form 2350 asking for an extension in order to pass the residency test and benefit from the foreign tax exclusion. Well, now that time has come! My return is due on the 31st.

My questions are:

1) When I fill out my 1040 and 2555, do I use the 2018 forms or try to get my hands on the 2017 forms?
2) I have my W-2 for the first half of 2017, but for the second half and my tax returns in the future, do I need to attach any kind of form with my income on it? Like the UK equivalent of a W-2?
And, 3) I'm pretty sure I know the answer to this, but I'm paranoid so I thought I would double check... I do have a British bank account, but at no point in 2017 (or 2018 for that matter) did my account go over $10,000 - am I correct in thinking that I do not need to file a FBAR form?

Thank you so much in advance! Any help or advice would be much appreciated - even if it's not about one of my questions!
California, USA

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Re: Form 2350 extension
« Reply #1 on: January 05, 2019, 08:12:28 PM »
I think you should be using the 2017 forms.

Keep your UK pay stubs as proof but nothing to file with your return, simply enter the amount for the year on form 2555. The UK equivalent of a W2 is a P60 but is April to April so maybe keep a spreadsheet to record and total your UK pay for the calendar year. The IRS publishes an average exchange rate each year that you can use to convert £s to $s.

You are correct about the FBAR limits being $10k. Note that it uses fuzzy arithmetic. If you have $5k in a checking account and transfer it to a savings account then you still have only $10k but will need to file an FBAR since the total of the maximums is $10k
Dual USC/UKC living in the UK since May 2016


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Re: Form 2350 extension
« Reply #2 on: January 06, 2019, 08:05:23 AM »
I am not clear why you are electing to claim the foreign earned income exclusion, as this rarely produces the optimum result.   

In terms of bank accounts, you will complete Schedule B, Part III.


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