US streamline tax return - dual citizen who didn't realise about US tax obligations!

[rrra]

So, I am a US citizen through birth, as my Dad is US and my birth was registered. I also got a US passport a couple of years ago but only just realised about US tax returns. I've never worked or lived in the US as an adult

Pressed post too soon!

So now I need to look into the streamline process. I've emailed Greenback Expat and Taxes for Expats.

I don't have any complicated financial stuff going on, no house sales or inheritance. But I do wonder how child benefit and Disability Living Allowance for my.children are treated as these aren't my income? I also joined a share purchase scheme at my work, which then asked if I was a US person when I tried to look at my account.

Any advice or guidance welcome as feeling very stressed out!

I know a few Americans in the UK (family included) who don't bother to file.
DLA/child benefit just might count as unearned income as going into your account.
Shares make things more complicated as you have to feel out additional forms.
You also need to file FATCA forms in addition. It's a headache.

talk.uk-yankee.com/index.php?board=11.0

The above is a good forum for this

Thank you I have joined that forum!

Im not sure I can ignore it now. Maybe it's better just to face it and work out how to renounce my US citizenship

@rrra sorry you've found out. You need an accountant specialising in US tax for people resident abroad. They will help you become tax compliant. You must be tax compliant before renouncing.
Expect it to cost lots - I was simple and was spending appox £800 a year on accountant feeds to file my tax returns. I earned under the threshold for income tax, but was taxed on a small inheritance from my English grandfather. It also cost a lot to renounce itself.
If you've sold a house in the last few years, they can tax that, as well as stocks and shares and investment ISAs and any interest you've earned from current accounts.
Pay a good accountant, do what they say and get out as soon as you can afford to.

Thanks. Any recommendations for an accountant? I emailed Greenback expats, who already replied, but said I would need an extra $250 appointment with an account to ask about the UK child benefit. I wouldn't have thought it was that unusual? It put me off a bit.

Those fees sound about right. You will get your earnings excluded as long as they are not borne by a US employer. Would not bother filing really.

What's the consequence of not filing? Surely they wouldn't expend resources on an average person living their life and hasn't ever earned wages in the USA? Madness.

Has the US Tax office contacted you about paying taxes?
If not I wouldn’t file either. You haven’t up till now.

Well it's dawned on me after I tried to log in to my company share scheme account and it asked if I was a 'US person'. I mean, I could say no but that would probably be illegal when they listed out below what being a US person meant.

I'm just pretty shook up by it and the thought of fines and not being able to have a bank account because I said I wasn't anUS person but I am.

I recently filed my us taxes for the first time. There is a tax amnesty now so they'll only go back three years. I used H&RBlock in the States. My 3 DC and I ( all dual citizens) are also going to get the covid payments. We'll receive about 10k for all of us, although apparently it will take at least six months to get it. Unfortunately, H&R Block are taking nearly half that because I don't have a straight forward tax situation X 3 years of filing. But it's a weight off my mind to know that I'm up to date.

Incidentally, I think it now costs something like 3-4000 dollars to renounce your citizenship and you have to be current on your taxes.

@hennybeans

I recently filed my us taxes for the first time. There is a tax amnesty now so they'll only go back three years. I used H&RBlock in the States. My 3 DC and I ( all dual citizens) are also going to get the covid payments. We'll receive about 10k for all of us, although apparently it will take at least six months to get it. Unfortunately, H&R Block are taking nearly half that because I don't have a straight forward tax situation X 3 years of filing. But it's a weight off my mind to know that I'm up to date.

Incidentally, I think it now costs something like 3-4000 dollars to renounce your citizenship and you have to be current on your taxes.

I don't suppose you know how they treat UK child benefit? Does it just class as an income? I guess I'm more concerned about DLA as it isn't money for me and it is a higher amount.

Sorry, I'm not really sure about child benefit.
I can say that I didn't owe anything though as the tax I paid in the UK was more than I would have in the US. I think that is generally the case.

If you're on Facebook, there is a very helpful group called US Expat Tax Questions. Some very knowledgeable people are on there