What Forms to Submit for tax return?

Firstly sorry if this has been covered somewhere. I did look but nothing stood out.

My wife is attempting to submit her tax return for 2020. I'm not a US citizen so it's only her filing. She works full time, employed by a business earning below the threshold $100,000 (or whatever it is) allowance.

We have one joint UK bank account and that's it. At no point during the year has it hit $10,000 so am I correct in saying the FBAR is not required?

If so, will a 1040 and F2555 suffice?

From what I can gather it will, but would appreciate confirmation/advice!

Thanks 

From the circumstances you describe, FBAR filing will not be required. There's always questions however on defined contribution pension arrangements and whether that value should be included - then it's very easy to get over the $10k threshold.

Using F2555 is definitely the easy way to file for earnings of less than $100k - although FTC on Form 1116 is an alternative - that would depend on your future plans (i.e. relocation back to the US) and circumstances if you accumulate unutilised credits.

I presume that you have looked at eligibility for the stimulus payments which your wife will be eligible to receive?

Assuming earnings eligibility, you should look at the IRS free file options - e-filing using free commercial software for those eligible - that would calculate the stimulus eligibility automatically - makes life a lot easier - my 3 daughters were all eligible and got their payments within a couple of weeks 

Thanks for your reply!

Even taking into account her pension pot for the year she'll be under the $10k threshold this year but noted for future years.

Future plans are definitely to reside in the UK permanently which is why we looked at the F2555.

Ref the stimulus payments she actually already received them as her address on her last return was her parents in the US so they were cashed and used over there.

Can you recommend a software that she can use for e-file? She tried Turbo Tax but got stuck on filing as married and not being to supply social security etc for me as I'm not US. Hence taking the paper route.

I've used Tax Act for the first time this year and I'm converted - you may see on other posts further comments.

I used the free file version of Tax Act for my daughter only this last week as she is Married Filing Separately (MFS) as her husband is a UK citizen only (she is dual US/UK) - it allowed e-filing, she got the IRS receipt of acceptance and her refund is now on its' way. I used a couple of workarounds for telephone numbers as I don't have a US number to use to register - but it all worked in the end. Post further if you get stuck.

https://apps.irs.gov/app/freeFile/browse-all-offers

We have one joint UK bank account and that's it. ........If so, will a 1040 and F2555 suffice?

With signature authority on a UK bank account, a 1040 Schedule B is required.

With signature authority on a UK bank account, a 1040 Schedule B is required.

Even if it is a non-interest bearing checking account? (Our UK checking account is no interest so just asking on behalf of OP)

She is doing an IRS tax return anyway so adding the UK  bank on Schedule B with $0 interest is easy to do if you think it is necessary.

I think it may be more to do with Part III of Schedule B - Foreign Accounts and Trusts and whether FinCEN 114 (FBAR) is required (Yes or No answers)

Whether total worldwide interest is over $1,500 or not, or whether it's an interest bearing account or not, Schedule B is required if there is signature authority over a foreign bank account. Several years ago the IRS sucked up tons of penalties using this omission as the inroad to catching some wealthy investors. We may not be in the same league as Manafort in the Mueller inquiry, but if you want to do the return correctly, complete all of Schedule B.

Gotcha on that Schedule B declaration, easily missed - as I just did!!  I suppose that filing with tax software all these years and always having to file Schedule B anyway I forgot about Part III with those check boxes.

From Schedule B, Part III

At any time during 2020, did you have a financial interest in or signature authority over a financial
account (such as a bank account, securities account, or brokerage account) located in a foreign
country? Y/N

If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial
Accounts (FBAR), to report that financial interest or signature authority? Y/N