Need help with taxes!

Okay so I just received my W2, and I have no clue how to go about filing them. I tried finding professional help but it seems like none know how to deal with expat tax. So I have no clue what to do, and just feel extremely overwhelmed and lost. Any help would be appreciated

I’m a US citizen and moved to the UK in July 2018. I started working in England in September 2018 and still employed. I do still have a bank account in the US and a shared one with my husband, who’s a UK citizen, here in England. But the bank accounts combined don’t exceed $10k.

Okay so I just received my W2, and I have no clue how to go about filing them. I tried finding professional help but it seems like none know how to deal with expat tax. So I have no clue what to do, and just feel extremely overwhelmed and lost. Any help would be appreciated

I’m a US citizen and moved to the UK in July 2018. I started working in England in September 2018 and still employed. I do still have a bank account in the US and a shared one with my husband, who’s a UK citizen, here in England. But the bank accounts combined don’t exceed $10k.

Hey there! I just use TurboTax. Works great!


Sent from my iPad using Tapatalk

Hey there! I just use TurboTax. Works great!


Sent from my iPad using Tapatalk

Cool! Do I have to do anything now or do I wait until April for my UK taxes?

If needed, a US income tax return for 2018 is due to be filed by 17 June 2019; but can easily be extended until 16 December 2019 if necessary by filing an IRS Form 4868 by 17 June - followed by writing a letter to the IRS by 15 October 2019.  An FBAR for 2018 must, however, if needed be filed with the US Treasury by 15 October 2019.

Why do you need to file in the UK?

Cool! Do I have to do anything now or do I wait until April for my UK taxes?

The US works on a calendar year so the UK tax documents you get in April don't line up.  I keep a spreadsheet and record the monthly payments from my UK pension and interest from my UK accounts.

If needed, a US income tax return for 2018 is due to be filed by 17 June 2019; but can easily be extended until 16 December 2019 if necessary by filing an IRS Form 4868 by 17 June - followed by writing a letter to the IRS by 15 October 2019.  An FBAR for 2018 must, however, if needed be filed with the US Treasury by 15 October 2019.

Why do you need to file in the UK?

If I don’t need an extension do I need to do anything before I file? Also do I need to fill any forms if my taxes are simple? I don’t see any reason for my taxes being complex other than the fact that I’m working in the UK and im married

If I don’t need an extension do I need to do anything before I file? Also do I need to fill any forms if my taxes are simple? I don’t see any reason for my taxes being complex other than the fact that I’m working in the UK and im married

The wages you earned in the UK in 2018 are taxable on your IRS return but you can exclude them using form 2555, however you can’t use form 2555 to exclude your wages until you have been out of the country for 330 days, so if this is an issue then you will need to file an extension.

When our son moved back at the end of September 2017 he started work after about 6 weeks so when time came to file for 2017 he filed for an extension to October 15th 2018 and then filed end of September. He used TurboTax.

The wages you earned in the UK in 2018 are taxable on your IRS return but you can exclude them using form 2555, however you can’t use form 2555 to exclude your wages until you have been out of the country for 330 days, so if this is an issue then you will need to file an extension.

When our son moved back at the end of September 2017 he started work after about 6 weeks so when time came to file for 2017 he filed for an extension to October 15th 2018 and then filed end of September. He used TurboTax.

So I need to file for an extension? I’m sorry if I’m not getting, like I said before this whole tax thing stresses me out because I have no idea what to do.

So I need to file for an extension? I’m sorry if I’m not getting, like I said before this whole tax thing stresses me out because I have no idea what to do.

It is just this first year that you will need to file an extension in order to be able to exclude your UK earnings, after that the automatic extension to June 15 for overseas filers is enough. It is just one of those rules that to exclude foreign wages from US taxes you have to have been out of the country for at least 330 days.

It is just this first year that you will need to file an extension in order to be able to exclude your UK earnings, after that the automatic extension to June 15 for overseas filers is enough. It is just one of those rules that to exclude foreign wages from US taxes you have to have been out of the country for at least 330 days.

if filing an extension will exclude my UK earnings shouldn’t I just file separately?

You will likely be better off MFS anyway - otherwise, your husband's income is reported and subject to US tax, and that opens up a huge can of worms that most choose to avoid, and makes your tax filing way more complicated. You likely do't want to go there.

The reason for waiting until you have been in the UK for 330 days is simply to exclude your earnings using Form 2555 as durhamlad said. You can only exclude your earnings if you meet either the Physical Presence Test or the Bona Fide Residence test.

Read this: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-physical-presence-test

and this: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-bona-fide-residence-test

First, I would do a spreadsheet for your GROSS (not net) UK income paid in 2018. You also need to convert the GB£ to US$. The IRS doesn't have an official Fx rate, but as long as you are consistent, you can use the rate 'on the day' from a site like xe.com or the US Treasury average rate for 2018 (which is what's used for FBAR filing), which was 0.75 (divide £ by 0.75 = US$). The total of your US income and your UK income is taxable in the US unless you use the FEIE to exclude the UK portion. Don't forget that you also have to report interest earned (if any) on the joint UK bank account; 50% of which is *yours*. If you only have 2 income sources for 2018, your filing is relatively simple.

Also, don't forget that you likely need to qualify for the health coverage exemption for part of 2018 and file Form 8965. That is yet another reason to delay filing until June or later. See https://www.irs.gov/pub/irs-pdf/i8965.pdf.

First, I would do a spreadsheet for your GROSS (not net) UK income paid in 2018. You also need to convert the GB£ to US$. The IRS doesn't have an official Fx rate, but as long as you are consistent, you can use the rate 'on the day' from a site like xe.com or the US Treasury average rate for 2018 (which is what's used for FBAR filing), which was 0.75 (divide £ by 0.75 = US$). The total of your US income and your UK income is taxable in the US unless you use the FEIE to exclude the UK portion. Don't forget that you also have to report interest earned (if any) on the joint UK bank account; 50% of which is *yours*. If you only have 2 income sources for 2018, your filing is relatively simple.

Also, don't forget that you likely need to qualify for the health coverage exemption for part of 2018 and file Form 8965. That is yet another reason to delay filing until June or later. See https://www.irs.gov/pub/irs-pdf/i8965.pdf.

I was planning to do married filing separately, and file for an extension.
 
Im having trouble understanding the rest of what you stated though... like I don’t know what any of that is. 

I was planning to do married filing separately, and file for an extension.
 
Im having trouble understanding the rest of what you stated though... like I don’t know what any of that is. 

Bridget, you said earlier that you had looked for professional tax help but were unsuccessful. Maybe if you ask here for recommendations, you'll find someone suitable?

Bridget, you said earlier that you had looked for professional tax help but were unsuccessful. Maybe if you ask here for recommendations, you'll find someone suitable?

Sure! If anyone knows a good tax professional please let me know 😩 lord knows I need help

Hi Bridget,

Asking for recommendations usually will not receive many replies. Searching google for US tax advisors in London comes up with many choices, but no recommendations.

Here's a selection from google:

https://www.greenbacktaxservices.com/

http://www.ingletonpartners.com/expatriate-tax/

https://www.hrblock.com/expat-tax-preparation/?otppartnerid=9125&campaignid=ps_mcm_9125_0104&gclid=Cj0KCQiAtvPjBRDPARIsAJfZz0p1IIWeuP912JTQ9gWtHhE5NsMcipcFc3sJzrk5eX4JVgEIE6aTCvcaAtw7EALw_wcB

https://www.taxesforexpats.com/

https://www.usglobaltax.co.uk/

https://www.americanuktaxsolutions.com/about-us.html

http://www.americantaxreturns.co.uk/

https://www.frankhirth.com/

Some of the above have been recommended by posters on this site. Some are inexpensive (less than $400), some are expensive ($1,000+). Some may not be highly regarded. Some are highly regarded in the industry.

You made the decision to live abroad. I'm afraid you're going to have to consider this additional cost as another consequence of that decision to live abroad.

You could just ignore the whole thing. The IRS probably won't even notice. But, if you ever want to live in the US again, you'll have to take some action. For example - if you are married to a UKC and the two of you decide to try living in the US in the future, you, as the sponser, must produce US tax returns for the last 3 years as part of that application.