# Resident Alien Tax Help



## b2552 (Mar 17, 2021)

Hi everyone,

In 2020 I permanently moved back to the UK from the US. I met the substantial presence test for 2020 and have filed as a resident alien.

Towards the end of 2020 I earned UK income (on which I paid UK income tax) and also had a UK bank account containing over £10,000.

My HR Block tax preparer told me I didn't need to include my UK income or disclose my foreign account on my return. After looking into this further I am concerned that these should have been included.

Will I need to go back and file an amended return including my foreign income and bank account? And will I also need to file FBAR?

Any advice on this would be greatly appreciated.

Thanks,


----------



## JustLurking (Mar 25, 2015)

b2552 said:


> Will I need to go back and file an amended return including my foreign income and bank account? And will I also need to file FBAR?


On my reading, no, and no. Provided you used split year treatment for your final (hooray!) US tax return, that is. Did your tax preparer use this treatment? If not, then unless you left the US on or really close to Dec 31, they probably should have. Details here:

IRS publication 519 : Last Year of Residency
Taxation of Dual-Status Aliens

As for part-year FBARs ... despite this form having existed for over half a century, there has never been guidance on this. Yet another US regulatory black hole, then. Both practically and morally, your financial activities when you are a nonresident alien and no longer a 'US taxable person' are _none of the US's business_. If required, file a "part-year" FBAR for non-US accounts held up to your date of departure, but do not report anything on it relating to accounts held after leaving the US. Ditto form 8938, if in scope for that.


----------



## Moulard (Feb 3, 2017)

If you met the substantial presence test then you would file your 1040 as a resident alien for the whole year, unless it is appropriate to file a dual status return. 

Just a note... sometimes it cab be advantageous to file as a resident alien for the full year and use FTCs because Non Resident Aliens and dual status return filers cannot use the standard deduction.

Sometimes it can be advantageous to claim treaty rights.. and force NRA status.

I suspect in part at least it will depend on when in the year you returned to the UK and what your income profile is.

As to the FBAR, the instructions are silent on the matter. A literal reading of the instructions would suggest that if, on 1 January you were no longer a US person, then you would no longer have a filing requirement for the prior year. Some choose to file as per normal. Some choose to file using balances up to the date of expatriation. Some choose to run away screaming.


----------



## b2552 (Mar 17, 2021)

Thanks both for your replies - it's such a minefield so I appreciate the help!

I left the US in July. Income wise there's around $100k from the US and £40k from the UK.

My tax preparer didn’t use split year treatment. Is it therefore best if I amend the return I already filed as a resident alien, this time including my UK income, or refile as a dual status alien (if it's possible to refile this way)?


----------

