US personal tax compliance

US 1040 and 1040-NR filing, category by category

The United States taxes citizens and Green Card holders on worldwide income wherever they live, and taxes everyone else on US-source income — often at 30% of the gross amount. Which category you fall into decides the whole engagement.

10401040-NR1040-X146538938FinCEN 1148288-A88051042-S

If you are a US person

Form 1040 filing categories

1040

Annual expat return

Worldwide income, the Foreign Earned Income Exclusion, foreign tax credits and state filing where a state connection remains.

14653

Streamlined Foreign Offshore

Three years of returns and six years of FBARs for non-wilful filers who are behind — with no penalty where you qualify.

Dual-status

Arrival and departure years

Part-year resident, part-year non-resident: two sets of rules in a single tax year, and the expatriation position on exit.

FinCEN 114

FBAR and Form 8938

Foreign account reporting once aggregate balances exceed USD 10,000, and FATCA asset reporting above the Form 8938 thresholds.

5471

Foreign company owners

Controlled foreign corporation reporting, GILTI and Subpart F positions for US persons owning non-US businesses.

If you are not a US person

Form 1040-NR filing categories

Sch. E

US rental income

Either 30% of gross rent, or net profit after expenses and depreciation under a §871(d) election. The difference is usually the whole liability.

8288-A

Selling US property

FIRPTA withholding of 15% of the gross sale price, reduced with Form 8288-B or reclaimed on a 1040-NR.

1042-S

Gambling and lottery winnings

UK residents are exempt under the treaty. The casino still withholds 30% — a 1040-NR is how you get it back.

8805

Partnership income

Section 1446 withholding on effectively connected income allocated to foreign partners, plus 1446(f) on selling the interest.

Sch. NEC

Royalties and investments

Authors, creators, dividends, interest and capital gains — treaty rates are often far below the default 30%.

1042-S

401(k), IRA and pensions

Distributions to non-resident beneficiaries, and the treaty article that decides which country taxes them.

Key dates

US filing deadlines

15 April

Standard US filing and payment deadline for the prior tax year.

15 June

Automatic extension for US citizens and residents living abroad.

15 October

Extended deadline where Form 4868 was filed.

15 December

Additional discretionary extension available to filers abroad on request.

Dates shift to the next business day when they fall on a weekend or US federal holiday.

Behind on US returns, or unsure which form applies?

Consultations start at £150 for 30 minutes. If you then decide to work with us, we quote a fixed fee based on the complexity of your case, in writing, before any work begins.

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