# US citizen living in UK filing taxes



## terri lynn (Dec 12, 2010)

i am a USA citizen living in the UK. I now have a resident permit to live in the UK. I worked and lived in the US until september 2011. I moved to the UK then and have not worked the rest of 2011. We are going back to the states for a visit in March 2012. I need to file my US taxes. Should I do them as normal when we go to visit or is there something I need to know now that I live in the UK? 
Thank you


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## Rndebidee (Jan 8, 2012)

terri lynn said:


> i am a USA citizen living in the UK. I now have a resident permit to live in the UK. I worked and lived in the US until september 2011. I moved to the UK then and have not worked the rest of 2011. We are going back to the states for a visit in March 2012. I need to file my US taxes. Should I do them as normal when we go to visit or is there something I need to know now that I live in the UK?
> Thank you


I'm not an expert but based on everything I have seen here you will have to file your US taxes and you need to do so even in future years in the UK. I don't know how to add links but just above this thread is another thread dedicated to taxes, which I think you will find most helpful.


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## Rndebidee (Jan 8, 2012)

terri lynn said:


> i am a USA citizen living in the UK. I now have a resident permit to live in the UK. I worked and lived in the US until september 2011. I moved to the UK then and have not worked the rest of 2011. We are going back to the states for a visit in March 2012. I need to file my US taxes. Should I do them as normal when we go to visit or is there something I need to know now that I live in the UK?
> Thank you


Think I figured how to include a link: Expat Tax - Expat Forum For Expats, For Moving Overseas And For Jobs Abroad
I


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## Bevdeforges (Nov 16, 2007)

Definitely take a look over in our Expat Tax section. In your case, though, it sounds as if you should just file your US taxes as usual. Since you weren't working in the UK since your arrival, you don't have to worry about the foreign earned income exclusion.

If your move to the UK was accompanied by a change in filing status (i.e. you got married to a Brit), you'll most likely want to file as "married filing separately." (Filing status is determined as of 31 December of the year.)

What I usually do if I have a trip to the US planned early in the year is to prepare my US taxes, then hand carry them to the US with me and mail them from there. (Saves significantly on the postage!) But, the fact that you are resident outside the US as of April 15th gives you an extra 2 months to file (if you're the procrastinating type).

Do file a change of address so they have your current address (see Publication 54 for the proper form) and do file using your current (i.e. UK) address.

And yes, you continue to have to file US tax returns forever, however if most of your income is from salary (so-called "earned income") you probably won't have to pay anything. I call it my "annual love letter to the IRS" - but once I start drawing retirement benefits from the US, that will all change...
Cheers,
Bev


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## terri lynn (Dec 12, 2010)

This information is so helpful! I thought this year I would just file as normal since we will be visiting in the states next week but my Brit husband thought I should check around which made me nervous that I may do something wrong.  I want to thank you for your time in answering this for me. It can be scary having to go through all this kind of stuff. Take Care!!!!


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## manny.j (Dec 4, 2011)

Bevdeforges said:


> Definitely take a look over in our Expat Tax section. In your case, though, it sounds as if you should just file your US taxes as usual. Since you weren't working in the UK since your arrival, you don't have to worry about the foreign earned income exclusion.
> 
> If your move to the UK was accompanied by a change in filing status (i.e. you got married to a Brit), you'll most likely want to file as "married filing separately." (Filing status is determined as of 31 December of the year.)
> 
> ...



You stated you mail your tax-returns when in the US and saves significnatly on the postage...but my understanding what that IRS has branches in Europe (London for example) do they not accept the documentations for tax-returns there or once a US citizen lives in Europe they can only mail them to the US address only? What about doing it online that saves hassles of mailing, postage and any worries of the papers getting lost in mail.


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## Bevdeforges (Nov 16, 2007)

manny.j said:


> You stated you mail your tax-returns when in the US and saves significnatly on the postage...but my understanding what that IRS has branches in Europe (London for example) do they not accept the documentations for tax-returns there or once a US citizen lives in Europe they can only mail them to the US address only? What about doing it online that saves hassles of mailing, postage and any worries of the papers getting lost in mail.


At one point I believe the IRS offices overseas and possibly the consulates accepted tax returns to be placed in the "diplomatic pouch" - in which case you had to provide US postage on the envelope so that the return could be mailed from Washington DC where the pouches are received. Somewhere I read that that service has been discontinued - but check the website of the London Embassy/Consulate (where the IRS office has a section) to be sure.

Online is an interesting issue. The Paris IRS office has put out an information sheet http://photos.state.gov/libraries/france/5/irs/efiling.pdf that explains the limitations for both fee based and free file services. The big one is that only a few online filing services will accept a foreign address.
Cheers,
Bev


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## manny.j (Dec 4, 2011)

Bevdeforges said:


> At one point I believe the IRS offices overseas and possibly the consulates accepted tax returns to be placed in the "diplomatic pouch" - in which case you had to provide US postage on the envelope so that the return could be mailed from Washington DC where the pouches are received. Somewhere I read that that service has been discontinued - but check the website of the London Embassy/Consulate (where the IRS office has a section) to be sure.
> 
> Online is an interesting issue. The Paris IRS office has put out an information sheet http://photos.state.gov/libraries/france/5/irs/efiling.pdf that explains the limitations for both fee based and free file services. The big one is that only a few online filing services will accept a foreign address.
> Cheers,
> Bev


I looked for filing information after reading the above and found the following 'helpful' link by the IRS:

*U.S. Citizens and Resident Aliens Abroad*

One would imagine IRS has option for filing online for US citizens abroad but no information was provided for filing online. 

I think you are correct in stating there are only a few tax return softwares that provides option for US citizens residing abroad...I guess I would be happy with only one as long as its reliable  Turbo-Tax is one of them but I had trouble filing with them (I am still in the US though but moving abroad soon). Basically, this is due to the introduction of FATCA (8938 form) which they have not integrated well in their online software, which hopefully they will for 2012 tax-returns. 

Thanks friend.


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## Bevdeforges (Nov 16, 2007)

Take a look over in our Expat Tax section for more information on all this Expat Tax - Expat Forum For Expats, For Moving Overseas And For Jobs Abroad

The FBAR forms don't go to the same address or office as your tax forms, so they have to be dealt with separately. There is a new online filing system (free, even!) for the FBARs ( see FinCEN Offers Optional Electronic Filing for FBAR Forms ) but when I tried to use it it didn't seem to be working. Easier just to print them off and mail them in. But perhaps the site is working better now.
Cheers,
Bev


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## manny.j (Dec 4, 2011)

Bevdeforges said:


> Take a look over in our Expat Tax section for more information on all this Expat Tax - Expat Forum For Expats, For Moving Overseas And For Jobs Abroad
> 
> The FBAR forms don't go to the same address or office as your tax forms, so they have to be dealt with separately. There is a new online filing system (free, even!) for the FBARs ( see FinCEN Offers Optional Electronic Filing for FBAR Forms ) but when I tried to use it it didn't seem to be working. Easier just to print them off and mail them in. But perhaps the site is working better now.
> Cheers,
> Bev


Hey Bev: I am aware of the Expat Tax Section (in fact you helped me there) and its pretty good  ...Hope we had a link for that in the "British Expat Forum" somewhere everyone can see clearly.

I just filed FBAR and 1040 yesterday and yes, as you stated, they are both at two separate addresses. I am hoping any of these commercial softwares will work reliably so I can mail them online than go through hassle of sending registered/ certified mail which is both time and money consuming.


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## Bevdeforges (Nov 16, 2007)

I've never bothered to send my tax returns or FBARs in registered or certified and so far have had no problems. I suppose it will become more critical when I start actually having taxable income back in the US in a few years. (Withdrawals from my IRA, on which I will owe taxes, but hopefully not too much.)

I'm opposed in principle to pay to file my taxes when I don't owe any taxes, but I don't qualify for their "free filing" services. The cheapest I've found so far is $7.95 to file federal income tax (which is still more than two overseas stamps). 

Have you tried the site for e-filing FBARs? I got as far as getting an e-mail telling me my access was good to go, but then couldn't get the site to accept any response to my "secret question" to get me started on actually filling out the form. 
Cheers,
Bev


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## manny.j (Dec 4, 2011)

Well, we were getting refund from our tax-returns hence we didn't mind spending some money to insure they are safely delivered but I do understand not being too concern if you don't owe any taxes 

For me, I probably would spend $8 to file taxes online even if its more expensive than stamp just for peace of mind that they have received my tax-returns as well as pretty instantly. I am 100% a cheapo but for certain things I don't hesitate spending money especially when it comes to the Govt. related documentations.

No, I have not yet e-filed FBAR but will try next year when we are abroad.


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