How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15996
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

I AM FILING MY AMERICAN TAX RETURN FORMS FROM THE UK FOR

Customer Question

HI I AM FILING MY AMERICAN TAX RETURN FORMS FROM THE UK FOR THE FIRST TIME, AT THE TOP OF THE FORM IT GIVES YOU AN OPTION TO PUT IN AN OTHER TAX YEAR OTHER THAN THE AMERICAN TAX YEAR FROM JAN TO DEC. CAN I PUT THE UK TAX YEAR HERE APRIL-APRIL AND FILE MY TAXES FOR THIS PERIOD AS PER MY TAX RETURNS FOR PAST YEARS ?
IF NOT HOW CAN I USE MY ALREADY COMPLETED TAX RETURNS TO FILE MY USA TAXES CORRECTLY ?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
Your US tax return is for the calendar year (Jan - Dec). The US form you use should already have the year preprinted at the top (1040, 1040A, or 1040EZ if you are a US citizen).
You would need the form 2555 if you have been outside the US for 12 months and in that 12 months 330 days. Then you can exclude up to the limit for the year ($99,200 for 2014).
You would need to report on your US return the income you earned form all sources in the tax year from Jan - Dec 31.
If you are not a citizen but have left the US and you are completing the 1040NR to report US sourced income you enter the dates that are relevant only for the calendar year still. EXAMPLE: you left the US in April but worked prior to leaving, you would show Jan 1, 2014 - April ? 2014. This would report just your time in the US and received US sourced income.
Let me know what your true status is (citizen or not of the US) and I can assist further.
Customer: replied 2 years ago.

Thanks Robin, I am a US citizen but i have lived in the uK since 1979.

I am filling in the 1040 form and at the top it has the tax year filled in but the it says or other tax year beginning ,2013, ending ,2014.

what is this for ?

Do i still need to fill in the 2555 ?

If i have to stick to Jan- dec do i just add up the figures for two years on my completed uk tax returns and divide them by 2 ?

Expert:  TaxRobin replied 2 years ago.
Thank you for the additional. no you do not change the year. You still look to Jan -Dec of the tax year to file the 2014 tax return. That date would be used for non citizens if the have a dual status in a year (not for you).You need the 2555 if you had earned income. If you did not have earned income you need the form 1116 to claim a credit for taxes paid.Yes you add up the income you had from Jan - Dec of 2014. It is a little more difficult but that is what you do.
Expert:  TaxRobin replied 2 years ago.
The tax treaty between the US and UK allows for relief from double taxation. So if you paid tax in the UK on income that is also taxable in the US you can claim a credit (form 1116).If you had wages in the UK or self employment that was taxed in the UK you will want to use the 2555 and just exclude the earned income from the US tax. Excluding is easier but it is just for earned income (not pensions or investments).
TaxRobin and other Tax Specialists are ready to help you
Expert:  TaxRobin replied 2 years ago.
Let me know if you still need assistance.
Customer: replied 2 years ago.

Thank you, ***** ***** now subscribed, so can i keep asking you questions without paying for every answer ?

Expert:  TaxRobin replied 2 years ago.
You are more than welcome to continue asking me questions in this thread as they relate to your original question. So if you need more info on the filing of the US portion please let me know..If you have a tax question that is different or new you should post it as a new question.
Customer: replied 2 years ago.

Ok Thanks

Over the last 3 years , i have received dividends from a limited company , a minimal salary to cover my tax free uk allowance from that company, some page payments from a university with tax already deducted and some self employment profit. Do all of these go on my 1040 form and if so is that before or after tax for the PAYe part, and do i need to attach my p60 instead of w-2 ?

If so do the PAYE payments go under no. 7 wages, dividends go under 9a ordinary dividends, self employment under no.7 wages.

Self employment must include a gross figure and then expenses educated separately correct ?

Expert:  TaxRobin replied 2 years ago.
You would report on the US return all income you have received.
You always list the before tax amounts for the income. The amounts that are for salary would be listed as wages and those are subject to exclusion.
The self employment you have to list on Schedule C (or C EZ which is shorter if you do not have expenses to claim), and you can exclude these too using the 2555.
The dividends are 9 and you can use the 1116 form for any tax that you may have paid to the UK on the dividends. The UK rate is probably more than the US rate so you will most likely have no US tax to actually pay when you are finished.
the Dividends
Customer: replied 2 years ago.

thanks, ***** ***** self employed part do i put that in no.12 and is that the full earning prior to deducting expenses ?

Please can you tell me whether i am on my subscription now ?

or whether i will get charged for every question answered?

Expert:  TaxRobin replied 2 years ago.
You are not charged for these follow up questions. These are all under the original post you made (and rated positively which I thank you).
The self employed income you have to do a Schedule C (or C EZ) first. On that you show your expenses and then only the NET (profit) goes to the US return 1040 Line 12.
Customer: replied 2 years ago.

Also should I fill in the 2555 or 2555EZ

Expert:  TaxRobin replied 2 years ago.
Yes, the 2555 will allow you to exclude the income from the wages and the self employment so you would not pay tax on those to the US.
The result is entered in parentheses on Form 1040, line 21.
Next to the amount enter “Form 2555.” On Form 1040, subtract this amount from your income to arrive at total income on Form 1040, line 22.
You have a reporting requirement so you list the earned income then you subtract it on Line 21 too.
Customer: replied 2 years ago.

if i list my salary and self employment under wages(line 7), self employment under business income (line 12) , then the sum of both under other income won't i be doubling up ?

Expert:  TaxRobin replied 2 years ago.
You do not put the self employment on line 7. You do the Schedule C then list the profit on line 12. Only wages goes on line 7.
I looked back over what I advised and I do not see where I included Self Employment with the wages for line 7. If I posted something in such a way as to lead you to believe you include self employment with wages I am sorry but, you only list employment as an employee on line 7.
Customer: replied 2 years ago.

sorry just realised it would be a minus figure

Expert:  TaxRobin replied 2 years ago.
The line 21 is in parenthesis to show as negative or subtracted amount.
Customer: replied 2 years ago.

sorry my mistake

Expert:  TaxRobin replied 2 years ago.
That is Ok. It is a learning curve. :)