The US tax for a US citizen or resident alien (who lives abroad UK & Canada) is generally the same whether you are in the United States or abroad. Your worldwide income is subject to US income tax, regardless of where you reside.
American Citizen or Green Card Holders Living Abroad (UK & Canada)
The requirement to file US taxes for all US citizens and Green Card holder living in the US or abroad is the same and are subject to declare their worldwide income. The difference is the taxpayers living in UK and Canada can use Foreign Income Exclusion to exclude or reduce the taxable income or Foreign Tax Credits to get credits paid abroad and avoid double taxation.
A non-us person having US income like rental property, Restricted Stocks, K-1’s, etc
Any non -US person having US-sourced income is required to file US returns. They will file a Non- resident return, the only income reported will be their US income.
Tax Deadline for Expats:
Taxpayers residing in the United States or present in the US on the April deadline are required to file their US taxes by April 15th (Note: for 2019 tax returns, the due date is April 15th,). However, if you are taxpayers Americans living abroad (UK & Canada) or out of the country traveling on the day of April filing deadline, the rules for tax filing deadline are different. They have an automatic extension until June 15th.
Please note any taxes due are required to be paid by April 17th, irrespective of being an Expat.
If you are unable to file your return by the automatic 2-month extension date, you can request an additional extension to October 15 by filing Form 4868 before the automatic 2-month extension date. However, any tax due payments made after the April deadline will be subject to both interest charges and failure to pay penalties.
Paper Filing your returns :
Just like the time associated for filing American tax for expats is different, you need to be aware of the address where you can mail your Federal returns. File your return using the appropriate address for your circumstances:
Requesting a refund, or no check or money order enclosed:
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
USA
Enclosing a check or money order:
Internal Revenue Service
P.O. Box 1303
Charlotte, NC 28201-1303
USA
A clear idea on Electronic Filing or e-file:
It is mandatory for people to learn more about electronic filing or e-file while considering filing US taxes even when living abroad. Read also: How to file us income tax return online through IRS
• Taxpayers with the AGI or the Adjusted Gross Income within a specified threshold can file for their tax return electronically for free by e filing their returns.
• Taxpayers associated with AGI greater than any specified threshold can often use Free File Fillable Form or the e-file by purchasing commercial software.
• There are limited numbers of companies, which offer software, which can be used for accommodating foreign addresses.
Just for determining which one works best for you, get some help in choosing a software provider.
More about Free File:
To save hard earned money while filing for us tax for us citizens living in UK and Canada, you need to be aware of what exactly “Free File” is. Right now, Free File is closed for the season and you can check back in January to file 2018 tax return. In the Free File, you can prepare and file federal individual income tax return for free with the help of tax preparation and filing software. Free File will cover all kinds of hard work on your behalf with brand-name software or for the Free File Fillable Forms.
For income below $66,000, the Free File software can file taxes for free. The software is easy to use, making it simpler for the masses. Furthermore, you will receive Free State Return Options too.