Yes, you do have to file US tax returns as long as you remain a US citizen - and giving up your US nationality "for tax purposes" can be a dangerous route as there are potential penalties for so doing. It's far easier to clear your record with the IRS, and chances are it won't cost you anything in back taxes or penalties.
What you need to do is to file the last 3 years of US returns (2006,2007 and 2008). Take the overseas earned income exclusion for your salary. You may wind up paying some small amount of taxes if you have big income from your US investments. But read the instructions (publication 54) carefully, as you'll probably be filing as "married, filing separately" and if any of the investments or bank accounts are in joint name, you may be able to avoid declaring interest or dividends on those in whole or in part since your husband is not subject to US taxes.
Once you've filed those back 3 years, and assuming you're not found to owe much or any taxes, you're square and can just continue filing your annual "love letter to the IRS". (And you have until June 15th to file the current return, since you're out of the country.)
There is also a requirement to file a form with the Treasury Dept listing your foreign bank accounts if the total in all accounts you hold signature authority over exceeds $10,000 at any point during the year. In your situation, I'd just file the report this year (i.e. for 2009) if you need to and let the Treasury Dept. decide if they want you to file for any back years. (Most likely, they won't bother.)
Cheers,
Bev
What you need to do is to file the last 3 years of US returns (2006,2007 and 2008). Take the overseas earned income exclusion for your salary. You may wind up paying some small amount of taxes if you have big income from your US investments. But read the instructions (publication 54) carefully, as you'll probably be filing as "married, filing separately" and if any of the investments or bank accounts are in joint name, you may be able to avoid declaring interest or dividends on those in whole or in part since your husband is not subject to US taxes.
Once you've filed those back 3 years, and assuming you're not found to owe much or any taxes, you're square and can just continue filing your annual "love letter to the IRS". (And you have until June 15th to file the current return, since you're out of the country.)
There is also a requirement to file a form with the Treasury Dept listing your foreign bank accounts if the total in all accounts you hold signature authority over exceeds $10,000 at any point during the year. In your situation, I'd just file the report this year (i.e. for 2009) if you need to and let the Treasury Dept. decide if they want you to file for any back years. (Most likely, they won't bother.)
Cheers,
Bev