If you’re living in the UK, American Living Abroad Taxes are still a yearly responsibility. The US generally taxes citizens (and some residents) on worldwide income, even when that income is earned and taxed in the UK. That sounds harsher than it usually feels in real life, because the system also gives you tools—exclusions, credits, and treaty rules—to prevent double taxation. The catch is that you still have to file and you still have to report.
This article is written for the practical question people actually ask: How To File US Taxes From UK without getting tripped up by forms like FBAR and Form 8938, and without leaving money on the table through the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC).
For American Living Abroad Taxes, most people think 1040 and done. In reality, your US compliance can have two tracks:
So when someone asks How To File US Taxes From Uk, the most accurate answer is: File the return and complete the required foreign-account reporting.
Here’s the timing that matters for American Living Abroad Taxes:
One important mindset for How To File US Taxes From Uk: extensions help you file later, but if you will owe US tax, waiting to pay can create interest and penalties. Form 4868 is clear that it’s an extension to file, not a free pass on payment.
Before you pick credits or exclusions, build a clean list of income for American Living Abroad Taxes:
This sounds basic, but it’s where How To File US Taxes From UK goes sideways. The US cares about the type of income because FEIE applies to earned income, while FTC can apply across categories with limits.
Most American Living Abroad Taxes outcomes come down to one of these two.
FEIE is claimed using Form 2555. If you qualify, it lets you exclude a set amount of foreign earned income.
For the 2025 tax year, Form 2555 shows a maximum foreign earned income exclusion of $130,000 (per qualifying person).
FEIE often fits well when your income is primarily UK wages and you meet the tests (bona fide residence or physical presence). It can make How To File US Taxes From Uk feel straightforward—but it isn’t automatically the best choice for everyone.
FTC is claimed using Form 1116 (for most individuals). It gives a dollar-for-dollar credit for qualifying foreign income taxes you paid or accrued.
FTC is frequently the better move for American Living Abroad Taxes when UK tax is already higher than what the US would charge on the same income, or when you have investment income that FEIE doesn’t cover cleanly.
For How To File US Taxes From UK, run a simple comparison:
This is also where mature reasoning matters: don’t choose FEIE just because it’s popular. Choose the method that fits your income mix and your longer-term plan.
A lot of people end up with zero US tax due, but still have reporting requirements. That’s a classic American Living Abroad Taxes trap.
You generally must file an FBAR if the aggregate value of your foreign financial accounts exceeded $10,000 at any time during the year. It’s about the combined total—so three accounts with $4,000 max each can trigger it.
FBAR is filed electronically, and the IRS reminds filers not to attach it to the tax return.
Also, Schedule B (Form 1040) asks about foreign accounts. The Schedule B instructions tie that question directly to FBAR rules, including the $10,000 threshold.
Form 8938 is separate from FBAR and attaches to your tax return. If you live abroad, the thresholds are higher. For example, IRS guidance highlights that if you live abroad and file single (or married filing separately), you may need Form 8938 if specified foreign assets exceed $200,000 at year end (or $300,000 at any time), with higher thresholds for married filing jointly.
This matters for How To File US Taxes From UK because UK financial life often means multiple accounts: a current account, savings, maybe an ISA, maybe a workplace pension. You might be under the Form 8938 thresholds but still over the FBAR threshold—or vice versa.
The IRS hosts treaty documents and treaty tables, including information related to the UK treaty. Treaties can affect withholding, pensions, and certain categories of income—but they don’t eliminate the need to file American Living Abroad Taxes as a US taxpayer.
If you’re employed cross-border or temporarily assigned, totalization agreements can help avoid being charged into two social security systems. The IRS explains how these agreements prevent double taxation for social security taxes.
And the Social Security Administration explains what a Certificate of Coverage is and why it matters in practice.
This isn’t something everyone needs, but when it applies, it can be the difference between a clean filing and a confusing one.
If you want How To File US Taxes From UK with fewer surprises, avoid these patterns:
Use this as your recurring process for American Living Abroad Taxes:
If you take one thing away, make it this: American Living Abroad Taxes are mostly predictable when you treat them like a process. First, report your worldwide income on the US return. Then reduce double taxation using FEIE (Form 2555) or the Foreign Tax Credit (Form 1116). Finally, handle the reporting rules—especially FBAR and Form 8938—because those requirements can exist even when your US tax due is zero.
Once you build a repeatable routine, How To File US Taxes From UK stops feeling like a yearly fire drill. It becomes a checklist you run, a set of records you keep, and a decision (FEIE vs FTC) you revisit when your income or life setup changes. That’s the practical way to stay compliant—and keep American Living Abroad Taxes from taking more time than they deserve.
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