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How to start paying US taxes as a dual citizen

Personal Finance & Money Asked by throwaway9753 on May 16, 2021

I am a UK/US dual citizen; born and living in the UK. I have travelled to the US several times, but never lived there.

My family’s attitude towards US taxes has always been "stay off the IRS’ radar". This makes me feel slightly uncomfortable, especially since (afaik) the UK/US tax treaty means no one should end up paying more tax than they would have as a citizen of just one of the countries anyway. I understand that there would be additional complexities (work) involved in filing twice, but (to me anyway) it seems like it’s worth the effort to avoid the possibility of being caught for years of back taxes sometime in the future.

I’m currently a little over a year out of university, having been full-time employed for close to a year.

What (if anything) should I be doing to correct my historical lack of US tax filings?

One Answer

You just need to go through the streamlined foreign offshore procedures. It's pretty straightforward although depending on how many years you earned over the threshold to file (around $12k - but since you live abroad that doesn't mean you will have to pay anything because you automatically get a deduction up until you earn over $105k), it could mean a lot of forms.

Assuming you have never earned more than $105k you won't need to pay anything either.

https://www.irs.gov/individuals/international-taxpayers/streamlined-filing-compliance-procedures

Answered by Cameron on May 16, 2021

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