Filing US Taxes from the UK
Here are the deadlines you should be aware of in 2017:
- April 18th: This is the first US tax deadline. US expats receive a two-month extension for filing, but any taxes owed must be paid by this date or interest will accrue.
- June 15th: This is the expat tax deadline for all Americans living overseas. This is also the deadline for requesting an extension until October 16th.
- October 16th: This is the final tax deadline for those who requested an extension.
A key challenge of getting ready to file your taxes is gathering all the documents needed to prepare your return. This can be harder for Americans living in the UK because the two countries have different tax years.
Although it is common belief you need to wait until your P60 is issued to file, you can usually file much sooner than that. When filing your US tax return, it is best to use your payslips rather than your P60 to report your wages. You can determine exactly how much you earned during the calendar year by using YTD amounts from just a few of your payslips. The same rule applies to other types of income statements, including interest, dividend, or investment sale statements you receive from your banks.
Accounts and Assets
Living in the UK commonly have foreign accounts and financial assets which can create additional US reporting requirements. Even if your accounts and assets don’t generate any income, you are still required to report them. This list includes:
- Bank accounts
- Retirement accounts
- Investment accounts (including ISAs)
- Interests in foreign businesses
- Interests in foreign entities (trusts & estates)
- And other types of other foreign investments.
This information is reported on a variety of international forms, the two primary forms being an FBAR and Form 8938. Read more here - http://www.derrenjoseph.com/2014/11/fbars-and-form-8938.html
These are just some basic guidelines to get you started. Regardless of where you live, our tax experts can prepare your return through our virtual tax preparation service.