Which IRS Tax form do I need?

Question

I am an American living in the UK. I need to file an 2006 income tax form for the money I have made while living here. I will not have to pay any tax on it, I just have to file for records purposes and for my British wife's visa application. (we are moving to Virginia)

Answer 1

A U.S. citizen or resident must report world-wide income and file tax return if the income exceeds the filing limit. You file the same return as U.S. citizen or resident living in the U.S., which is Form 1040.
For 2006 you can only file paper return. Also if your address is in a foreign country you can't file online.

If you had a taxable income then you may need to file Form 2555 (to exclude earned income up to around $85,000) and/or Form 1116 for foreign tax credit.

Answer 2

Sorry, but your UK income is subject to US tax! Don't know who told you otherwise but they told you wrong.

US citizens are subject to US income tax on their worldwide income. Where you live and where you earned the income does not matter.

You MIGHT be able to exclude some or all of your income from US tax if you qualify for the Foreign Earned Income Exclusion. If you don't qualify you can take a credit on your US tax return for any foreign income taxes paid. You can also use the credit if it results in less tax than the exclusion does.

Your return is way overdue. Assuming that you resided in the UK on April 17, 2007 your return was due on June 15, 2007. If there is any tax due you will be hit with penalties for late filing and penalties and interest for late payment. You won't know if you owe until you prepare your return.

You file a Form 1040 return just like any other US citizen. You file Form 2555 to claim the Foreign Earned Income Exclusion or Form 1116 to claim the credit for foreign income taxes paid.

Get a copy of IRS Pub 54 to learn about the tax rules for US citizens living abroad. And get on the stick with the return; you're very late as I noted earlier!

BTW, your tax liability has nothing to do with your wife's visa application. If SHE owes any US taxes she must be current on any filings and payments. It would be unlikely that she has any US tax liability as she is neither a US citizen nor a US resident yet.