# Queries about US Resident Alien Filing for US Tax from UK



## usresalieninuk (Mar 29, 2015)

Hi All :wave: ,

I had a query regarding if I should be filing US taxes for 2014. I have been reading around a bit on the internet and also on this forum (which is a really useful one ) but cannot find a concrete answer hence would appreciate any assistance from anyone who is in a similar position.

I am a Resident Alien (Green Card Holder) currently based in UK. My green card application was approved in March 2014 and I entered the US in August 2014 and had to leave the US in September 2014 and have been in the UK since then. I got my physical Green card in November 2014.

I was going through the process of filing a US tax return but my queries are:

(1) I am not sure if I really should be filing one? 
Cause I have been a US resident only since August 2014. And my understanding is you should file taxes only if you were a resident for the whole tax period (i.e. Jan - Dec 2014). I have been working in the UK from Jan. - Dec. 2014 and have been paying the taxes over here.

(2) If I am supposed to be filing a return, then is it Form 1040?

(3) If it is form 1040 that needs to be filled, then which section under 1040 should I be filing my Income earned in UK? And which section should I enter my tax paid in UK?

(4) I have been using a website called Online Taxes to file my taxes, but the process is really confusing / complicated (maybe because it is the first time i am doing this!:confused2: )

(5) I am not sure if I have enough time before the April 15th deadline to file my taxes. What is the procedure is I have to apply for an extension? Or is there a process where I can defer my tax filing to next year?

Sorry for the long post, hope this is clear and would appreciate any assistance or guidance to get a start in this matter.

Thanks in advance.


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## Bevdeforges (Nov 16, 2007)

OK, so you have a green card, but you're resident in the UK? 

A green card is a residence permit. If you intend in staying in the UK, you need to surrender your green card - and in that case, then your US tax obligation is over and done with. You can't hang onto a green card just "in case" you decide to return to the US some day.
Cheers,
Bev


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## usresalieninuk (Mar 29, 2015)

Hi,

Yes, I am a residing in the UK currently and I intend to move to the US in the coming months. But wanted to file the return before the deadline.

Would you be able to assist with my queries?

Thanks


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## BBCWatcher (Dec 28, 2012)

You're what's known as a "dual status" tax filer for 2014. Take a look at IRS Publication 519 for details.

As a dual status alien you can file IRS Form 1040NR for the period from January 1, 2014, until you entered the U.S. For that period only your U.S. source income (if you have any) is taxed. Then you file IRS Form 1040 to cover the remainder of the year. During that second period (from your U.S. entry date) your worldwide income is taxable (though not necessarily taxed).

You may also have the option, alternatively, to file as a full year resident using only IRS Form 1040. That would probably be an attractive option if you had low worldwide income during that period in 2014 before you entered the U.S., or that income was taxed at rates about the same or higher than U.S. rates, or you had mostly earned income (income from work) of about $9,000 or less per month and you can take the Foreign Earned Income Exclusion for that period (which you probably can). Check Publication 519 to see if this option is available, if it interests you.

Finally, you may also have the option to start tax filing from 2015 when you re-enter the United States if that short period in the U.S. was not really the start of your residence. However, that approach may be in conflict with your green card status, so I would check that option very carefully.


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## usresalieninuk (Mar 29, 2015)

Hi BBCWatcher,

Thanks for the response and for the details.

I was not aware of the "dual status" option, thanks.

I am thinking of going with the 1040 application as my monthly income is less than $9,000. So for this, do i just fill the "Foreign Earned Income (Form 2555)" subsection under the "Income" section?

Also, where do i fill the tax paid? Is it under "Foreign Tax Credit (form 1116) " subsection under "Credits" section?

Would there be any other sections that needs to be filled to enter Income and Tax details?

Also, how do we apply for an extension? Or is there an automatic extension for those filing from outside US?

Sorry for all the questions!  

Thanks again.


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## Bevdeforges (Nov 16, 2007)

For what and how to file, you may want to take a look at IRS publications 17 and 54
Publication 17 (2014), Your Federal Income Tax
Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad

Chances are you won't be able to use the 2555 form at all, as you probably cannot qualify under either the physical presence test nor under the bona fide resident test - certainly not if you only entered the US on your green card part way through 2014. But see what the information on dual status filing has to say about that. Taxation of Dual-Status Aliens

But in any event, have you received your US Social Security number yet? You need that in order to file taxes at all.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

Bev, I don't think IRS Publication 54 is going to be _particularly_ helpful in this situation, and it might be more confusing than anything else. Publication 54 is more outbound from the U.S. than inbound into the U.S., and this poster is inbound. Publication 519 is likely to be the most useful, especially the "dual status" sections.

The FEIE _might_ be possible if the original poster is allowed to file 2014 as a full year resident. If that is allowed, and if the FEIE is then allowed, only the portion of the year prior to U.S. entry would be eligible for the FEIE. But the original poster should be able to easily satisfy the FEIE's physical presence test because he (or she) wasn't physically in the United States until August, 2014. That's what I had in mind.


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## usresalieninuk (Mar 29, 2015)

Hi Bev,
Thanks for the links. I had gone through Pub. 54 before but not through the Dual Status one. But these documentations are a bit hard to read through and understand. Maybe its just me since I am doing this for the first time.

Yes, I do have my SSN.

Hi BBCWatcher,
Thanks again for the details.

So if i understand this right. 

1) I don't have to file "Foreign Earned Income - Form 2555"? If so then is it "Foreign Employer Compensation/Pension (not reported on W-2/1099-R) - FEC" ? Cause i don't have a W2 form from my employer.

2) Where do i file the foreign taxes i have paid - "Foreign Tax Credit Form 1116" ?

Thanks again.


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## Bevdeforges (Nov 16, 2007)

usresalieninuk said:


> 1) I don't have to file "Foreign Earned Income - Form 2555"? If so then is it "Foreign Employer Compensation/Pension (not reported on W-2/1099-R) - FEC" ? Cause i don't have a W2 form from my employer.


exactly! The FEC form is what you use for non W-2 salary income.



> 2) Where do i file the foreign taxes i have paid - "Foreign Tax Credit Form 1116" ?.


Right again! 

See, you're getting the hang of it. Though I'll admit, the first time through is definitely the toughest.
Cheers,
Bev


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## usresalieninuk (Mar 29, 2015)

Great! thanks a lot Bev appreciate it. Yeah kinda getting the flow. 

Just taking each section...
(1) For Foreign Employer Compensation/Pension (not reported on W-2/1099-R) - FEC. 

Under this there is this field - "Foreign Employer Compensation Amount". This is where I enter my pay from Aug - Dec. 2014 right?

(2) For Foreign Tax Credit Form 1116 (This is where it is getting a bit complicated)

For this field "Select the Category of Income. " - I am selecting General Category Income as my taxes are deducted from my pay itself.

Then there are different PARTs
PART - I TAXABLE INCOME OR LOSS FROM SOURCES OUTSIDE THE UNITED STATES
This is where I enter AGAIN my income from Aug - Dec. 2014 ?

PART II. FOREIGN TAXES PAID OR ACCRUED.
This is where i enter my actual taxes paid?

Thanks again


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