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How to File a U.S. Tax Return if You Are Living in the UK 



How to File a U.S. Tax Return if You Are Living in the UK 

How do you file taxes as an American expat living in the UK? Why is it important to file US taxes when you live in the UK? Taxes can be confusing, especially if you are an American living abroad.

In this article, you will learn who is required to file a US tax return and how to file a U.S. tax return if you are living in the UK. 

Who is Required to File a U.S. Tax Return when you are living in the UK?

Every person who works and belongs to a U.S. citizen and Green Card holder must submit tax returns regardless of where they live or work in another country.

Every person who earns the minimum amount of money must submit a US income tax form and settle any tax they might have to pay.

Here are the most important brackets for the 2021’s tax return that must be filed in 2022:

  • If you’re under the age of 65 and are single, the minimum amount you must earn is $12,400.
  • If you’re 65 years old or older, the filing requirements rise slightly to $14,050.
  • For self-employed people, the minimum limit is $400, regardless of age or their filing status.

How to File a U.S. Tax Return if You Are Living in the United Kingdom

Below are the tips you can use to file a US tax return. An expat tax consultant can also help you to file US taxes in the United Kingdom.

Income Threshold for US Expats

If your earnings exceed the threshold for tax filing, it is essential to file tax returns to keep the IRS aware that you are adhering to your American obligation. US tax laws for expats can assist you in remaining on track to avoid tax penalties and penalties.

If you’re a US citizen who is living abroad, you must file any of these conditions:

  • Personal income from salaries, wages, rental properties commissions, tips, capital gains, pension funds, and alimony. 
  • A different country taxed all or some of your earnings; you’ll be required to file tax returns to ensure you’re not taxed twice!

Combining FEIE and Foreign Tax Credit

However, just because you may avail of any or all of them isn’t a guarantee that you can avoid filing taxes! US Americans working overseas taxes must be aware of this.

It is possible to also combine FEIE along with it being able to be combined with the Foreign Tax Credit by applying to the Foreign Tax Credit, which will cut the amount of your US tax bill to the point of zero. If you determine your tax bill lower than zero, you’ll still have to pay your US taxes.


The Foreign Account Tax Compliance Act governs Form 8938. If any of your foreign assets exceed the following limits, this form must be filed with Form 1040.

Since 2015, banks from abroad, with the permission of the IRS, are required to report their income from the bank account to IRS Americans. This is why it’s crucial to submit your FBAR and FATCA (Form 8938) properly.

Final thought

Both Americans in the United States, as well as in other countries, are required by law to submit a tax return each year. So if you want to file a US tax return if you are living in the Uk, the above tips will be useful.

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