Can someone tell me how i work out the amount of income for forms 1040 & 2555EZ.
What i am finding confusing is that the U.K tax year runs from Apil to April on the P60 & P45, but the U.S tax year runs from January to December, so how do i work this out? and do i need to send any evidence, and what would this be.
Any help is great
cheers Carin

Don't know if this will help but,when we do our returns they work on the previous years income from the U.K , why don't you call the I.R.S we have found them so helpfull.

CHEERS FOR SUCH A QUICK RESPONSE.

Yeh i called all yesterday but could get anybody to speak to then i phone the U.S, spoke to a lovely man was on the phone for over an hr, but this topic never came up!
Do they need any evidence? do i need to send anything.
thanks for ur help, keep it comming pls.
cheers carin

Typically, you need to provide evidence of income and income tax paid.

SOME people might say you should not bother about declaring your UK income prior to arriving in the US. Report your UK income to the IR for the last tax year you worked in the UK and pay whatever tax is necessary (or receive a refund). Then submit your US taxes to the IRS for the first tax year you were in the US and pay whatever taxes (or get refund) for your first US tax year. Then from that point you're good to go. Whether that is correct/appropriate/legal, whatever is another question but that's what a lot of people. Otherwise as you say, the overlap in UK/US tax year is just too complicated.

Thanks thats cleared up some of the confusion.
Having spoke to I.R.S in the states Bona Fide Residence they said that i should go down the Bona Fide Residence route, so that i dont need to pay any tax, is this right and has other people done it this way.
thanks again

Thanks thats cleared up some of the confusion.
Having spoke to I.R.S in the states they said that i should go down the Bona Fide Residence route, so that i dont need to pay any tax, is this right and has other people done it this way.
thanks again

Handy info from the IRS -

http://www.irs.gov/businesses/small/...=96433,00.html

From a US employer you will receive a W-2 form sometime in January for the past calendar year. Banks etc will send a 1099 form for interest paid to you. These would be submitted with your IRS tax return.

cheers for that, ur info most helpful.
carin

My husband is a US citizen who lived in the UK for years so he has had to do this every year.

He set up a spreadsheet, takes his payslips and calculates his UK income and tax paid from Jan to Dec, and puts it in the spreadsheet. He gets the current exchange rate from the internet, puts that in, and puts the resulting income figure in the 2555.

Did that make any sense?

that was great help, thanks.
cheers carin

Any chance of getting a template of that? My Wife has to catch on the last 5 years. This would help a lot. Thanks.

If a template is on the go, can i get a copy, if not nae worries.
Cheers Carin

this kpmg site might be of use too - as it does mention the bone fida situation.

http://www.kpmg.com/Services/Tax/Per...ES/IESPubs.htm

We only just discovered the other day that if you file your taxes too late the IRS has the right to charge you tax on your gross income without giving you any exemptions. My husband had just filed his taxes for 1999 through to 2006 and received a letter from the IRS saying they would not allow him foreign citizen status for 1999. His accountant told us it could be because he'd filed late. We had a sleepless few nights about that one...

Turned out he'd made a mistake on his 2555 and they'd just rejected the whole form, and it is now all sorted.

Thats good to know, that if i fill it in wrongly (which i think i will) will they sort this out with me over the phone or do i need to fill the whole form in again. Do u have a template for working out the tax for the year by any chance.
Carin