Emmarrr

My US husband and I moved back to the UK in November and have to file our US tax return. We only have W2s to declare, plus possibly childcare costs to include. My green card is still valid.

Can we file online?

Which form do we have to use?

Do I have to include my UK earnings from Nov and Dec? If so, how?

Thank you!!

Cook_County

As you are both US persons you will both need to file. As you do not have a qualifying period overseas you will want to file Form 4848, and possibly Form 2350.

nun

You will file just as you did before, but including your UK income. You have not lived in the UK long enough to qualify for the Foreign Earned Income Exclusion so you will have to use Foreign Tax Credits.....ie use the UK tax you've paid on UK income to offset your US tax bill.

What are you going to do about your Greencard? The IRS will still consider you a US tax resident and you should actively define your residency status for both US and UK tax now that you have moved to the UK.

Emmarrr

Thank you for the help. I didn't pay tax on my first UK paycheque as it was using an emergency tax code. I'll have to look into how to do this offsetting...

I was going to abandon my green card but have been advised elsewhere on here that I should instead apply for citizenship remotely. Not sure if that is really possible. Either way it looks like we will have to file late.

nun

Getting US citizenship will keep your residence options open which is good when you have a US spouse, but it also makes you forever liable to US tax and makes owning certain foreign accounts and investments very complicated. Research all the implications.

Cook_County

The good news is you are 6 to 9 months to early to file in the US for 2016, so you have time to research & decide the optimum position.

penguinsix

You should also be aware of FBAR and FATCA filing requirements on overseas assets should you cross those thresholds. FBAR is only $10,000 USD equivalent but FATCA is a bit higher.