# Help with first 1040 - very low income! Should be easy!



## AccidentalAmerican (Mar 5, 2020)

Hi everyone. I am an "Accidental American" - I was born in the UK, and lived and worked here all my life. I occasionally holidayed in the US as a child because my mother was born and raised in the US, but that is all the links I have with the USA. 

I have recently found out that as a US citizen I have these onerous tax obligations. (I am completely outraged about it, but that's not what I want to discuss today). 

I have completed my streamlining application (years 2016, 2017 and 2018) and sent it off. I didn't actually have any income during those 3 years as I have been a stay-at-home parent so I just entered lots of zeros! 

In Sept 2019 however, I started a part-time job (book-keeper for a small UK charity) and earned the equivalent of $396 by year end!! So now I am now completing my first tax return with actual income on it (I am Married filing separately as my husband is a "non-resident alien"). 

I have spent hours reading the damn forms and really can't figure it out so please can someone tell me these answers:

1. Where do I enter my $396 on form 1040 - is it Line 1? If so do I need to present some evidence of my income because I don't have a form W-2 of course?
2. Do I need to complete Form 2555? Presumably I don't need to claim the Foreign Earned Income Exclusion because my earnings are well below the Standard Deduction, but do I need to fill in some of it simply to declare my foreign income?
3. Are there any other forms I need to fill in? I have only one bank account (British of course) and that did not have more than $10,000 in it in 2019. I have nothing else to declare (to my knowledge!)

Thank you so much if you can help me!


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## shony (Jun 13, 2019)

*Form 1040*
line 1, 7b and 8b = 396
line 9 and 11 a = 12,200
line 11b = 0
*Schedule B*
line 7a Yes
and No for reporting Form 114
line 8 No
I would not fill out 2555 or 1116 for that income. 
You do not need to submit any proof of your income


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## AccidentalAmerican (Mar 5, 2020)

Thank you shony, I think I love you!


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## Nononymous (Jul 12, 2011)

AccidentalAmerican said:


> Thank you shony, I think I love you!


Too late now, alas, but there was really no reason for someone in your situation to begin filing US tax returns. If you find it onerous you are free to stop without fear of consequence.


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## AccidentalAmerican (Mar 5, 2020)

Nononymous said:


> Too late now, alas, but there was really no reason for someone in your situation to begin filing US tax returns. If you find it onerous you are free to stop without fear of consequence.


Please can you explain Nononymous? I am married filing separately so the threshold for filing is $5 is it not? Thanks in advance.


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## Bevdeforges (Nov 16, 2007)

AccidentalAmerican said:


> Please can you explain Nononymous? I am married filing separately so the threshold for filing is $5 is it not? Thanks in advance.


The IRS has basically NO way of knowing that you are earning any amount of money from full or part time employment. (And no, you don't have to send in any "proof" of your salary unless you get a US style W-2.)

The one exception to the rule of "the less they know the better" is if you need to file US returns because you're looking to make use of your US citizenship to sponsor a spouse or other family member for a family visa to the US.


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## Nononymous (Jul 12, 2011)

AccidentalAmerican said:


> Please can you explain Nononymous? I am married filing separately so the threshold for filing is $5 is it not? Thanks in advance.


Simple: the IRS had no idea that you existed, so why would you voluntarily tell them anything about yourself? You were born in the UK, your only connection to the US is your mother. Essentially, had you not begun filing, the US government would be none the wiser.

It would be perfectly reasonable for you to stop filing, going forward. The IRS only knows what you tell them, has no other way of learning your income. Pretend you've returned to non-working parent status and don't even earn $5, so have no requirement to file. (You were not obliged to file a bunch of returns with $0 income, by the way - you were compliant all along and didn't really need to enter the streamlined program.)

It sounds like you're not required to file FBAR forms either. If you have disclosed US citizenship to a bank and are concerned about potential FATCA reporting, close the accounts and open a new one at a different bank, without disclosing US citizenship. You have a UK birthplace on your UK passport, there's no reason for the bank to believe that you are a US person.

Overall, with the small income you've earned there's zero chance of your owing money, but filling out US tax forms every year is a pointless violation of your privacy. Being born in the UK, you are completely not at risk from ignoring US tax and reporting obligations.


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## AccidentalAmerican (Mar 5, 2020)

Thanks Nononymous, I appreciate you taking the time to respond. Without going into detail, I am going to inherit from a US citizen who recently died so my situation in 2020 is going to be more complex and that is why I have made the effort to come into compliance.


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## Nononymous (Jul 12, 2011)

AccidentalAmerican said:


> Thanks Nononymous, I appreciate you taking the time to respond. Without going into detail, I am going to inherit from a US citizen who recently died so my situation in 2020 is going to be more complex and that is why I have made the effort to come into compliance.


Well that may be a compelling reason, if it involves _in situ_ US property (but not if the executor just mails you a cheque). 

Once all assets are out of the US you're free to go dark again.


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