US Citizen living in UK ... self unemployed unaware of taxes. HELP!!

[andrea92 0]

Hi,

So I am a us citizen been living in England for three years. Well I just found out I have to file for my taxes. I am self employed and when I go to file it says I owe over $7000.. I read online that I can apply for a certificate of coverage here in England. How long does this usually take and how do I file so I get this written off? I appreciate anything you can share with me.  I just find it really upsetting to see that I payed over 10,000 pounds here in England and to find out I owe America as well. 

 

Thanks a lot.

 

[milimelo 4,477]

There are cpas in UK who can handle this. Hire one to help with your taxes. 

[Crazy Cat 41,850]

You need to make sure you are making use of the foreign income exclusion......I agree with @milimelo

[Nitas_man 3,100]

On 7/18/2019 at 7:02 AM, missileman said:

You need to make sure you are making use of the foreign income exclusion......I agree with @milimelo

Self employed involves FICA etc but there is a treaty in place and credit applied for equivalent taxes paid.  

OP definitely needs a tax professional.

[Tesco 70]

File an IRS form 1116 to take a credit for UK tax paid, or if you meet the boni fide UK residence test, (which as you have been living in the UK for 3 years you should), file a 2555, to exclude up to around $100,000 of earned income. Check current exclusion amounts.

 

You can file via TaxAct online, for less the $30.

 

Remember your FINCIN 114 and 8938 (check thresholds and if you meet them)

 

As a U.S.C or GC holder you report your worldwide income to Uncle Sam 

 

Finally, you don't pay tax twice on the same income - You take a credit to IRS for tax paid to HMRC