# USC Filing Overseas Taxes



## KatyB (Jan 24, 2013)

Hi all

Just looking for some advice. I, shockingly enough, have just realized that I should have been filing my taxes from the UK to the US for foreign earned income. I don't think I am alone here... 

I have been reading lots and I just cant seem to figure out what I need to file. 

Is it the 1040 and the 2555?

I have also seen stuff on Streamlining just the last 3 years. Does anyone have any information on this? I didn't really understand the FBR form for that. 

Also, can I send them all off to the London Embassy or do I need to send them to Austin, TX where most other things seem to go. 

I would be really grateful of any help with this.

Thanks a lot
Kate

PS - I am sorry if this is in the wrong place in the forum!


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## Bevdeforges (Nov 16, 2007)

Exactly what you should be filing depends a bit on your exact financial situation, but for someone living and working in the UK, with your primary source of income being your job, the main forms you need to file are a 1040 and a 2555. As part of the 1040, you also need to file a Schedule B, if only to check "yes" or "no" on the bottom of the form stating whether or not you have foreign bank accounts with a cumulative balance at any point during the year of $10,000 or more (includes any account you have signature authority over, like your employer's bank account, even if you can't help yourself to the balances).

Download Publication 54 from the IRS website for what you need to know about the 2555 form and general filing from overseas. And remember, the point of the exercise is to give them only as much information as it takes to get your taxes due down to 0. (What I mean by this is that, there's no point getting all concerned about deductions if the Foreign Earned Income Exclusion covers your salary in total and your miscellaneous income is no more than a few hundred dollars worth of bank interest.)

If your answer to the question on Schedule B is "yes" then you have to file the so-called FBAR form (actually Treasury form TD F 90-22.1) which is basically a list of all your foreign (i.e. non-US) accounts, Don't get too paranoid about finding the precise high balance for the year - give it a good faith estimate if you don't have all your statements - and then add another 1000 or so. I seriously doubt they'll penalize you for "overestimating" by a bit.

The tax forms go to the address in Austin (which should be in the Pub 54 instructions - there is a specific address for forms filed from overseas). The Treasury forms go to a different address, which is on the form itself.

Normally, if you haven't been filing tax returns from overseas for "a while" you only really need to file the current year and 3 years back (so, 2011,2010, and 2009). If all three of those filings show 0 taxes due, then you're done.

FBARs are supposed to be filed for six years back - different statute of limitations.

Things can get a bit more complicated if you have significant sources of income that are not from employment and thus not subject to the foreign earned income exclusion. Also if you're married to a non-resident alien (i.e. foreigner) and have joint bank or investment accounts.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

There is more information available on the IRS's streamlined compliance program here.


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