carls247

Hi, sorry if this has been mentioned multiple times, but having read many forums and websites i wanted to see if what i have below if correct and if there is anything i'm missing.

Having asked for help from accountants/tax advisors they want to charge me from $1,500 to $20,000 to help. With no spare cash I need to do this myself.

- I'm a UK Passport holder (with residence since 1 month) and also US Passport holder.
- Bank contacted me with FACTA asking for my relation with USA.
- Realised i should have been submitting Tax returns for all previous years!!
- Looking at the IRS Streamline Process, so understand i have to submit 3 years of returns and 6 years of FBAR.
- I use 1040 form for tax returns (and post to the USA to Streamline address) and fill out the FBAR online forms. All using yearly conversion rates from IRS website.
- Also fill out a 2555 form for each year of tax return to i don't pay double tax and attach to the 1040 forms.

Is there anything else i need to consider? I'm not self employed, have no dependents, my salary has been under the threshold all previous years and still is. Do I have to register for the Streamline Process? Is there any other form i should consider?

I only came on the radar for FATCA as i sold my sole residents and am in transition mode to my new house so lots of money turned up in my account, so BOOM, hello US Person.

Most of this info i actually got from BritishGuy36's page on this website. Very helpful (although i can't message him yet for a copy of a completed 1040 form as i'm too new

Any help is very much appreciated.

dave2702

Normally I do all my stuff through Turbotax, if this is your first year so you have the problem with half UK and half US stuff then probably will need a accountant

I just went to an H&R Block, they referred me to one of their specialists (not the ones in the shops) who did all the complex stuff and took his fee out of the Return

carls247

Thanks, although I think this has confused me more. Half UK and Half USA? I've paid my taxes in the U.K. so just need to submit my US tax returns from 2013. Surely it can't be that difficult to fill out a 1040?

durham_lad

FBAR uses the official Dec 31st exchange rate on the Treasury Site.

https://www.fiscal.treasury.gov/fsre...eExch_home.htm

IRS 1040 returns use the IRS Site official average exchange rate

https://www.irs.gov/individuals/inte...exchange-rates

Confusing it is.

Cook_County

Well - you haven't mentioned Form 8938, your FBAR, the currency gain on repaying your Sterling mortgage [which is why I doubt that you would want to elect to claim the FEIE], Form 8965 and Form 14653. The streamlined procedures would start from the 2013 US return.

robin1234

No, you're right, it isn't that difficult to fill out a 1040. dave2702 has mentioned two ways of doing tax returns - using software packages such as turbotax, and employing an accountant. There is a third way, simply filling in the 1040 and related forms the old fashioned way, with a pen or pencil. I'd strongly recommend the third way. That way you'll really understand the process. That way, if you employ an accountant in the future, or use turbotax, you can eyeball the resulting forms & hopefully spot errors and omissions.

carls247

Isn't Form 8938 only used if my assets are more than $200k?
Already on the case with form 14653 as that's how I declare myself being totally unaware of needing to do it.
Not sure what form 8965 means...

carls247

Thanks Robin, that's what I thought. I also struggled to get TurboTax for previous years as you must have a US address and US credit card, both of which I don't have.

robin1234

I believe (unless things have changed) there are different filing thresholds for 8938, a lower one for folks living in the US, and a much higher one for those living abroad, for instance in the UK. The rationale, I think, is that folks living abroad are likely to have their accounts in the foreign country they live in, whereas people in the US should be subject to a higher level of scrutiny if they have foreign accounts.

Edited to add this link https://www.irs.gov/businesses/corpo...nancial-assets

Cook_County

Do you participate in a UK pension plan, hold an ISA or some other investment..

carls247

Yes i've just started a new pension plan, and my old one has around 8k in it. Can't touch either till i'm 65.
No ISA, but savings in an easy saver. Which for 2017 might tip the 200k mark (just) because of the money from my property (but surely this is property gains which has a threshold of $250k?)

Cook_County

There is no $250k exemption on a foreign currency gain; if you have one. Are either of your foreign pension plans considered as foreign grantor trusts? If so, the filing deadline for Form 3520-A is quite soon on 15 March.

carls247

This is the house sale exemption I was referring to - https://www.irs.gov/taxtopics/tc701.html
And no, my pensions of for me, no one else so no Grantor Trusts.

Cook_County

I was referring to Internal Revenue Code Section 988 gains.