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Discussion Starter · #1 · (Edited)
Hi Guys,

I hope you can help! I have been putting off filing my taxes the last few months just because I simply don't know where to start.

I was paid an end of year bonus from my employer in Feb 2017, and since March 2017 I have been working in the UK and getting paid in the UK.

For some reason, my family haven't received my W-2 from my employer. SHould I have received one?

I have 2 bank accounts - one in US, and one in England. I did have more than £10k in my bank account so I believe i have to file a bank form?

.... I believe the deadline is June 15 2017 so my questions for you geniuses:
- What forms do I file?
- What system/program did you guys use to file (which is simple enough)?

Thank you so much!
 

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I've moved this over to our Expat Tax section, since it's a common issue for all Americans living overseas, not just in the UK.

I was paid an end of year bonus from my employer in Feb 2017, and since March 2017 I have been working in the UK and getting paid in the UK.
You'll claim the bonus on next year's tax return - the US is on a cash basis, so what counts is when you received the bonus. And you'll have to continue filing US tax returns anyhow, but will be able to use the Foreign Earned Income Exclusion to avoid having your UK salary taxed twice.

For some reason, my family haven't received my W-2 from my employer. SHould I have received one?
I believe employers have until January 31st to get your W-2 to you. You may have to contact them to get a duplicate.

I have 2 bank accounts - one in US, and one in England. I did have more than £10k in my bank account so I believe i have to file a bank form?
You only have to report the UK account to the US (on FBAR Individuals Filing the Report of Foreign Bank and Financial Accounts (FBAR) electronic filings only). Check with the UK tax authorities to see what, if any, requirements there are for reporting your US account to the British tax authority.
.... I believe the deadline is June 15 2017 so my questions for you geniuses:
- What forms do I file?
- What system/program did you guys use to file (which is simple enough)?
If you didn't start working/earning in the UK until 2017, you file your US returns exactly like you did when you were in the US. You aren't entitled to any of the overseas special conditions (except that of filing "late") until you have been outside the US for a year (depends on whether you claim "bona fide resident" or "physical presence").

For 2016, you file a plain old 1040 (longform, A or EZ) - just use your current UK address when filing and the filing extension will kick in automatically. However, if you owe taxes, you will have to pay interest from April 15th (the usual filing deadline). No different from what you have done in the past.

It's not until next year when things get "interesting" - because you'll have to establish your residence period if you plan on taking the FEIE.

If you want to use a filing program, most of them are available online - Turbo Tax, TaxAct and H&R Block are the top three in just about all the reviews I've seen. There is the IRS free-file program, but you have to meet pretty strict income and age guidelines - still, worth checking out if you have less than about $64,000 in income. https://www.irs.gov/uac/free-file-do-your-federal-taxes-for-free

All the participants in the Free File program have paid versions available online. TaxAct is normally the cheapest for filing online, and they have a version you can download onto your computer for something like $40 (more expensive than filing online) - but that gives you access to the program to "experiment" for next year. The top three providers all can handle overseas filers (i.e. mainly the FEIE form 2555, Foreign Tax Credit form 1116, and they can take a foreign address).
Cheers,
Bev
 

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>I was paid an end of year bonus from my employer in Feb 2017

Was this your US employer? Have you yet filed your 2016 US taxes (it's now way past due)? Remember that your W-2 is for the previous year's employment. So if you were paid in Feb 2017 by your previous US employer then you should get a W-2 at the beginning of next year when you file 2017 taxes.

You don't normally file taxes in the UK (amazing how this works, it's simply accurately taken out of each pay cheque). But as long as you are a US citizen you need to file US taxes, whether you are resident there or not. In addition to US federal income taxes, and depending on your state you may need to file state taxes, you also need to file FBAR for your UK account over $10k

I usually use H&R Block, they had a decent service (reasonably priced) for expat tax services and I got really good advice which I thought was worth paying for.

Edit: I didn't see the previous response before responding myself, it was still in the UK expat forum when I responded... Sorry
 

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Have you yet filed your 2016 US taxes (it's now way past due)?
For overseas filers returns are due on 15 June. 15 Oct if you apply for an extension using Form 4868.

So plenty of time yet if you get the 4868 filed promptly.
 

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Discussion Starter · #5 ·
I've moved this over to our Expat Tax section, since it's a common issue for all Americans living overseas, not just in the UK.


You'll claim the bonus on next year's tax return - the US is on a cash basis, so what counts is when you received the bonus. And you'll have to continue filing US tax returns anyhow, but will be able to use the Foreign Earned Income Exclusion to avoid having your UK salary taxed twice.


I believe employers have until January 31st to get your W-2 to you. You may have to contact them to get a duplicate.


You only have to report the UK account to the US (on FBAR Individuals Filing the Report of Foreign Bank and Financial Accounts (FBAR) electronic filings only). Check with the UK tax authorities to see what, if any, requirements there are for reporting your US account to the British tax authority.

If you didn't start working/earning in the UK until 2017, you file your US returns exactly like you did when you were in the US. You aren't entitled to any of the overseas special conditions (except that of filing "late") until you have been outside the US for a year (depends on whether you claim "bona fide resident" or "physical presence").

For 2016, you file a plain old 1040 (longform, A or EZ) - just use your current UK address when filing and the filing extension will kick in automatically. However, if you owe taxes, you will have to pay interest from April 15th (the usual filing deadline). No different from what you have done in the past.

It's not until next year when things get "interesting" - because you'll have to establish your residence period if you plan on taking the FEIE.

If you want to use a filing program, most of them are available online - Turbo Tax, TaxAct and H&R Block are the top three in just about all the reviews I've seen. There is the IRS free-file program, but you have to meet pretty strict income and age guidelines - still, worth checking out if you have less than about $64,000 in income. https://www.irs.gov/uac/free-file-do-your-federal-taxes-for-free

All the participants in the Free File program have paid versions available online. TaxAct is normally the cheapest for filing online, and they have a version you can download onto your computer for something like $40 (more expensive than filing online) - but that gives you access to the program to "experiment" for next year. The top three providers all can handle overseas filers (i.e. mainly the FEIE form 2555, Foreign Tax Credit form 1116, and they can take a foreign address).
Cheers,
Bev
I'm a ditz and meant 2016 - I'm using Turbo Tax Deluxe.. so hoping this is done correctly. With regards to FEIE form 2555 - do I need to fill that out separately from TurboTax? Thank you so much!!!
 

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Not sure what you mean by filling out form 2555 "separately" from Turbo Tax. The 2555 form should be available as part of your Turbo Tax package.

If you've been working since March 2016 in the UK, you won't be getting a W-2 from your employer at all. It's only US employers that send those out. The IRS pretty much has to take your word for your earnings. But on the TurboTax, be sure to check for a form to fill out to report FOREIGN employment income. That should cause the 2555 option to pop up. If you fill out a dummy W-2 for foreign income, TurboTax will just assume it's US source employment income.
Cheers,
Bev
 

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Discussion Starter · #7 ·
Not sure what you mean by filling out form 2555 "separately" from Turbo Tax. The 2555 form should be available as part of your Turbo Tax package.

If you've been working since March 2016 in the UK, you won't be getting a W-2 from your employer at all. It's only US employers that send those out. The IRS pretty much has to take your word for your earnings. But on the TurboTax, be sure to check for a form to fill out to report FOREIGN employment income. That should cause the 2555 option to pop up. If you fill out a dummy W-2 for foreign income, TurboTax will just assume it's US source employment income.
Cheers,
Bev
Hi Bev - I think I got it now... It's showing a negative amount for the amount I've put in as my UK earnings (in dollars). Hopefully that's right. Now I've got to the e-filing page and it's asking me last year's adjusted gross income amount... I had filed that with an accountant, and that's sitting in NY. EEEEEEEEEEEK :(
 

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The Other Income line on your 1040... will be line 21 if you are using the long form, is likely to show a negative income reflecting the exclusion of your foreign earned income from form 2555.

Personally, I always recommend ensuring that you get a printed copy of the return even if you have an accountant do it all for you. Because ultimately it is your return and not theirs.

If you cannot e-file because you don't have a copy of your previous return (and thus don't know the AGI used to confirm your identity) you can always simply print off your return and post it in.
 
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