British Expats - Filing 2017 Taxes

British Expats (https://britishexpats.com/forum/)

- USA (https://britishexpats.com/forum/usa-57/)

- - Filing 2017 Taxes (https://britishexpats.com/forum/usa-57/filing-2017-taxes-911172/)

Filing 2017 Taxes

Hello Folks

I am British and I've returned to England after spending 5 years working and living in the USA. I did want to square everything off and file my taxes for spending half of the 2017 tax year in the US.

I had a quote from HR Block over here for £650 which is a tad more expensive than the $70 I used to pay them in the US to file taxes for previous years.

Does anyone have any experience with this and if so could you offer any suggestions/advice please?

Thanks!

Re: Filing 2017 Taxes

That sounds jolly reasonable in the UK for preparing a dual status return.... $70 wouldn't even cover the cost of the software and insurance for a professional preparer. A US income tax return for2017 will need to be filedwith the IRS if worldwide income and gains exceed$10,400 (single) $4,050 (married filing separately) or $400 (self-employed). The return is due to befiled by 15 June 2018; but can easily be extended until 15 December ifnecessary. An FBAR for2017 must, however, if needed be filed with the US Treasury by 15 October 2018.

Re: Filing 2017 Taxes

Thanks Cook....but rather than use a professional preparer, isn't this something I could do myself through taxact or turbotax? If this is such a reasonable charge, why is the cost so much more than doing it in the US.

Just thought I'd ask, even though I have no intention of returning what are the repercussions for not filing my taxes at all?

Re: Filing 2017 Taxes

Quote:

Originally Posted by Sooyp (Post 12474071)

If this is such a reasonable charge, why is the cost so much more than doing it in the US.

The minimum cost of having a basic US return completed in the UK (1040, 2555/1116, 8965, and Sch. B - all required) is $400, and that's through one of the online tax return mills. Obviously, a dual status return would be more. Why starting at $400? Because it's a captive market with only a few preparers possessing both US and UK knowledge.

Quote:

Originally Posted by Sooyp (Post 12474071)

Just thought I'd ask, even though I have no intention of returning what are the repercussions for not filing my taxes at all?

There could be no repercussions at all if you owe little US tax, have no assets in the US, including pensions, etc., never return to the US, and are willing to lie about a continuing US status when opening bank accounts etc. in the UK (by not filing you leave the unfiled partial year open to IRS liability with no SOL). On the other hand, perhaps the more appropriate question is 'What is your risk tolerance'?