Harveyspecter

I'm going to book and appointment with a specialist just to be sure I report it correctly. While I don't need to file one, as pointed out it would be good to have as evidence if if I apply for citizenship.

Steve_

All these answers posted look wrong to me, it sounds like you're dual-status. So assuming you worked abroad during the first part of the year before moving to the US then absolutely yes, you have to file a US tax return otherwise your foreign income becomes subject to US taxes. The fact that you've earned nothing in the US isn't terribly relevant, it's whether you earned anything that is.

If you earned absolutely nothing either in the US or abroad, then no you don't need to file a tax return.

Dual-status tax returns essentially require you to file as a non-resident alien for the first part of the year and you declare your US source income, which is presumably zero, so you file a blank 1040NR-EZ for that bit (except for the address and write dual status at the top) and the 1040EZ for the second part of the year is also blank. Even though they're both blank, it basically implies all your income was foreign.

Have a read of "dual status returns" in IRS publication 519. You cannot file jointly as a dual status filer.

Also, you should always file a tax return because it protects you against the IRS coming after you. If you file something, the IRS has to accept it or reject it within 3 years. If you file nothing, they can come after you at any point.

Harveyspecter

Steve,

Thanks for your comprehensive reply. I went to a tax specialist today and left with more questions than answers so was feeling a bit fed up.

You are correct that my US source income was zero. So are you saying I simply need to file a blank 1040NR-EZ and a blank 1040EZ? Also, file as "Married filing separately?"

Thanks

Cook_County

If you own PFICs you potentially have mandatory US filing. Hopefully the adviser you meet will understand PFICs, UK pension plans, ISAs or whatever else you have to assist you with this.

Steve_

Like I said read "dual-status returns" in IRS publication 519: https://www.irs.gov/pub/irs-pdf/p519.pdf Page 32 onwards.

But essentially yes, you file two returns for either part of the year, both of which would be largely blank other than your SSN, name and address and you write dual-status across the top and state what portion of the year they cover.

There is a printed example in the 2011 edition of 519 which they removed for no apparent reason.

As it mentions you can elect to be resident for the whole year and file jointly with your spouse, but you can't do that if you did get earned income while abroad during the year, as it will become subject to US taxes.

Harveyspecter

Steve, I only just gpt around to seeing this. Thank you so much! It is great to get the info from the Horses' mouth so to speak.

Harveyspecter

Ok all, sorry to bring this up again but I am stuck on line item 11 on the 1040EZ form and I don't know what to do.

Neither my wife nor I have been employed since moving over and therefore haven't had any form of medical insurance. So I presume for this line item we have to file a form 8965 to get an income based exmption? I'm not finding any un-confusing asnwers online so would appreciate some tips. Thanks.