- If you are under age 65 and single, your minimum income requirement is $10,400
- If you are 65 or older, then filing requirements raise slightly to $11,950
- For self-employed individuals, the threshold is $400 regardless of age and filing status.
- In most of the cases, it’s better to claim Foreign Tax Credit over using Foreign Earned Income Exclusion (here is the infographic which explains why FTC wins over FEIE),
- A Foreign Housing Exclusion will allow you to have additional exclusions from your income for some amounts paid to cover household expenses due to living in the UK,
- If you are US citizen living in the UK who never filed a tax return, you may be eligible to use Streamlined Procedures to file late back taxes penalty-free,
- Don’t miss any tax deadlines: the UK tax year is different than the US tax year. You submit tax returns to Her Majesty’s Revenue and Customs office (HMRC) by October 31st if you file by paper and by January 31st of the next year if you e-file. There are no any extensions.
3. October 15th, 2018 – final deadline to file your US tax returns and FBAR if the extension was requested before the original due date.
Due to complexity and nuances of both US and UK tax laws, we strongly recommend every taxpayer to consult a US expat tax professional to understand and be aware of all the UK residency and domicile rules, the requirements, available US expat tax deductions, credits, and exclusions which will help to lower the tax bill.