durham_lad

My mistake, sorry, I was thinking of filing in the UK. While resident in the USA I don’t believe you qualify for FEIE.

https://www.irs.gov/individuals/inte...n-requirements

If you file for the full year to take advantage of MFJ I really don’t know how the ACA penalty is applied since you would not have had HI for part of the year.

jammiie

Did you have to pay any additional tax on the UK income you had earlier in the year before you were in the US?

PBRlad

I'm a bit confused about your 330days thing as the bonafide residence test asks if you have spent 330 days outside the US to qualify for FEIE so for myself that would be from birth to the date I moved which then makes you eligible.

Did your son's partner put him on their insurance plan when he arrived? There is a few options after the health insurance which I can't remember what one we selected Though the next few boxes asked what months were covered and then what months you lived in the UmS for each partner. Then it waived the penalty?!

durham_lad

See my post above - #61

I made a mistake - sorry, wrong country, my son just moved to the UK and is filing as a US citizen abroad.

PBRlad

Ah that makes sense!


Im just confirming that I went through the correct process for the 2555 FEIE

I entered the total value that I earned in a foreign country. The next screen said

1.Was Joe Bloggs a U.S Citizen in 2017�
(Selected No)

The question below that is worded a little strange it says
2.Was Joe Bloggs a U.S resident alien while working outside the U.S.� ????

Note: It is possible for a NRA spouse of a citizen or Rae elect to be treated as a resident alien. If this is your situation, we recommend you consult a tax professional to help file your return.�

�
Yes Joe Bloggs is a us resident alien?

Or�

No, Joe Bloggs is not a us resident alien?

.........


Whilst working in the U.K before marriage I was not a u.s resident alien but when selecting that it mentions that since I was a NRA in 2017 I need to file a 1040NR? It mentions they don't include it in TT and to continue on how to get the form.�

If I select yes it asks if there is an income tax treaty in effect?�

Yes or No�

�

�

Apologies for the long question, I'm guessing it should be yes for resident alien and is this purely because I'm married to a USC.

When selecting yes it asks another question about a bona fide residence test or some other residence test

We selected yes as when viewing information online they don't mention a 1040NR for foreign income exclusion

Giantaxe

Even though you'll get a foreign tax credit, I can certainly think of many situations where you'll owe US tax in addition to what you've paid in the UK. An obvious example is where your US income is far higher than what your UK income had been. However, given that UK rates tend to be higher than their US equivalent (and the US allows far more deductions from income) usually you wouldn't owe any additional US tax on that income, especially if the income is earned as opposed to from dividends/capital gains.

PBRlad

Hi Tom,

Just to clarify for the substantial presence test it mentions a three year period. Is that only if you didn't have the full 183+ days in the current year to pass it, you could use other days from prior years?

Furthermore,with being resident since early May 2017 I have been here over the 183 days in 2017 is a statement still required or can I e-file without statement attached?

tom169

Yes, if you pass 183 days in 2017 you pass Substantial presence test.

If you want to efile you will need to do a married file separately dual status return.

If you want to married file jointly and declare the whole year as a tax resident you will need to file by mail and attach a letter saying so.

PBRlad

I see I thought if you met the substantial presence test you could efile and do married joint filing??

On turbo tax online is there an option to pay and print your return as opposed to doing the e-file?

tom169

If you're a dual status you cannot e-file.

Please read https://www.hrblock.com/tax-center/f...s-alien-taxes/. I know the tax code is a PITA the year you arrive, but I think we are going around in circles.

Either that or have a CPA handle it all and figure out your best option.

PBRlad

Hi Tom,

Apologies for the confusion on my end. We have prepared our statement and we believe we are close to filing which is a relief

I do have one last question in regards to my employer pension scheme from the UK.

My wife has information pulled from her W2 that shows how much she contributed to her 401k. Though am I correct in saying my UK employer pension scheme I dont enter anything about it on my TurboTax? I only do it when I do the FBAR.

Would I enter that information on my US taxes once I am able to pull from it years down the line?

For members who have been in the same situation or know the answer all responses are greatly appreciated. Many Thanks

durham_lad

Although your wife’s W-2 shows how much she contributed to her 401k that does not appear anywhere on the US tax return, just her taxable income which is net of the contribution.

I don’t know if the same applies to your UK salary but would expect that you would report the gross, although that is just speculation on my part. My son will be doing his US taxes this year for 2017 and will be reporting his gross UK earnings which are well below the limit of $102,100 for excluding all of his earned income so contributions to his pension scheme is not an issue for him.

PBRlad

Thanks durhamlad, we did the foreign earned income exclusion on TurboTax already in our return. I was just unsure about the section that asks about pensions etc I believe it is related to US pensions and 401k contributions or if you are currently receiving payments from your pension plan. Though I won't be receiving payment from my small amount in my UK pension plan until years down the line.

durham_lad

In TurboTax under the section “Wages and Income” it is asking about receiving pension income either from a company pension scheme or from withdrawals from a 401k or IRA etc. all of which are reported on a 1099-R. Once I started receiving UK pensions then I started reporting that income on substitute 1099-Rs (I receive 2 UK private pensions). TurboTax walks you through the creation of a substitute 1099-R.

In TurboTax under Credits and Deductions it will ask about contributions to an IRA because if you made contributions and your earned wages are below a limit then you can claim a deduction for those contributions.

PBRlad

I see so since I don't have an IRA account it doesn't apply correct? The 1099-r will be something I'll be completing years down the line once I'm at the eligible age to pull payments from my UK pension scheme plan? So for this year my UK pension plan isn't required on my taxes but will be reported on my fbar.

Sorry for the abundance of questions, I just find taxes a bit overwhelming and want to ensure all is correct.