How to file US taxes from the UK?

If you’re a US citizen or green card holder living in the UK, you’re still required to file a US tax return each year. The IRS taxes Americans on their worldwide income, even if you’re already paying UK taxes.

The good news is that most expats can reduce or eliminate double taxation by using provisions such as the Foreign Earned Income Exclusion or the Foreign Tax Credit. This guide explains how to file US taxes from the UK, including the key requirements, forms, and deadlines you need to know.

Last updated April 27, 2026

Written By: Rose-Ann De Villa, EA, CPA

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Table of Contents

Do Americans in the UK have to file US taxes?

Yes. US citizens and Green Card holders living in the UK usually must file a US tax return every year if their income exceeds IRS filing thresholds. This requirement applies even if all income is earned in the UK and UK taxes are already paid.

The United States tax system is based on citizenship rather than residency, which means Americans abroad generally must report their worldwide income to the IRS.

However, filing a US tax return does not always mean paying US tax. Many Americans living in the UK eliminate or significantly reduce their US tax by using:

Because UK tax rates are often higher than US rates, many Americans in the UK ultimately owe little or no US tax after these rules are applied.

Who usually must file US taxes while living in the UK

Person	Must file a US tax return?
US citizen living in the UK	Yes
Dual US-UK citizen	Yes
US Green Card holder living abroad	Yes
Non-US spouse of a US citizen	Usually no

Filing does not automatically mean you will owe US tax. Many Americans abroad file every year and end up paying little or nothing once credits or exclusions are applied.

How much do I need to earn to file US taxes in 2025?

It depends on your filing status and how much income you earned during the year. If your income is above the IRS filing threshold, you usually need to file a US tax return.

For the 2025 tax year (filed in 2026), here are the standard IRS filing thresholds for most taxpayers:

Filing status	Income amount
Single	US$15,750
Married filing jointly	US$31,500
Head of Household	US$23,625
Married filing separately (foreign spouse)	US$5
Self-employed	US$400

Even if your income is below the normal threshold, you may still need to file in some cases. For example, this can happen if you owe special taxes, have self-employment income, or need to file to claim certain tax benefits.

For Americans abroad, many people also file voluntarily even below the threshold to:

Claim the Foreign Earned Income Exclusion
Claim Foreign Tax Credits
Maintain compliance with IRS filing rules

When are US taxes due if I live in the UK?

If you live in the UK, you still follow the US tax calendar, but you get extra time to file. Most Americans abroad automatically receive a 2-month extension.

For the 2025 tax year (filed in 2026), here are the key deadlines you need to know:

Deadline	Meaning
April 15, 2026	Standard filing and payment deadline
June 15, 2026	Automatic filing extension for expats
October 15, 2026	Final deadline if an extension is requested

Americans abroad usually get until June 15 to file automatically. However, if you owe tax, interest usually starts running from April 15. That is why many expats estimate what they owe before filing later.

Deadlines are only one piece of the puzzle. Another major difference between the US and UK tax systems can create confusion.

Also read: US tax deadline 2025 for 2026

Why are the US and UK tax years different?

The US and UK use different tax calendars, which often surprises Americans moving to the UK. The US tax year runs from January to December, while the UK tax year runs from April to April.

This difference can affect how and when your income is reported in each country.

US vs UK tax year comparison

Country	Tax year
United States	January 1 to December 31
United Kingdom	April 6 to April 5

Because of this mismatch, the figures on your UK tax documents may not line up neatly with your US return. For example, a P60 usually reflects the UK tax year from April 6 to April 5, while the IRS wants income reported from January 1 to December 31.

In practice, Americans in the UK usually rely on payroll records or annual income summaries to determine how much income belongs in each calendar year.

Also read: What is the UK tax year?

What are the most common tax situations for Americans in the UK?

The most common tax situations depend on how and when you moved to the UK, as well as how you earn your income. Your filing requirements can change based on your job, residency status, and financial setup.

Most Americans in the UK fall into a few typical scenarios, such as:

Moving to the UK during the year

If you relocated mid-year, part of your income may have been earned while you were still living in the US. Some expat tax benefits apply only to the period you lived abroad.

Working remotely for a US company

Income is usually treated as foreign-earned if the work is physically performed in the UK, even if your employer is based in the US.

Filing with a UK spouse

If your spouse is not a US citizen or a Green Card holder, you generally have two options:

File jointly and include your spouse in the US tax system
File separately and keep their income outside US reporting

Each option affects tax credits, deductions, and reporting obligations.

What income do I need to report to the US if I live in the UK?

If you live in the UK, you still need to report your worldwide income to the US. The IRS does not only look at UK income. It looks at everything you earn, no matter where it comes from.

This can include income such as:

Salary and wages
Self-employment income
Dividends and interest
Rental income
Capital gains
Foreign pension payments
Equity compensation such as stock options or RSUs

Will I be taxed twice in the US and UK?

In most cases, no. Even though you still need to file a US tax return, there are rules in place to prevent the same income from being taxed twice.

These include tax credits, exclusions, and agreements between the US and UK that help reduce or eliminate double taxation.

Here are the 2 main tools that US expats use to prevent double taxation:

Foreign earned income exclusion

The Foreign Earned Income Exclusion, or FEIE, lets some Americans abroad exclude part of their foreign earned income from US tax.

For the 2025 tax year, the exclusion amount is US$130,000 per person (IRS Form 2555 guidance).

To claim the exclusion, taxpayers must meet one of two residency tests:
1. Physical presence test: 330 days outside the US within a 12-month period
2. Bona fide residence test: genuine residence in a foreign country for an entire tax year
The exclusion applies only to earned income, such as salary or self-employment earnings.
Foreign tax credit

The Foreign Tax Credit lets you reduce your US tax bill by claiming credit for income tax you already paid to HMRC. Because UK tax rates can be higher than US rates, the credit often reduces the US tax bill to zero.

The credit is usually claimed on Form 1116. Some expats combine both strategies in the same return, depending on their income sources.

How does the US-UK tax treaty help me?

The US and the UK have a tax treaty that helps decide which country can tax certain types of income. This helps reduce the chance of being taxed twice on the same money.

The treaty can help by:

Clarifying which country has primary taxing rights for certain types of income
Reducing withholding taxes in specific situations
Supporting the use of foreign tax credits

However, the treaty does not remove the requirement for US citizens to file US tax returns.

What US tax forms do I need if I live in the UK?

If you live in the UK, filing US taxes may require a few extra forms beyond your standard tax return. The exact forms depend on your income, assets, and financial situation.

Common US tax forms for Americans living in the UK

Form	Purpose
Form 1040	Main US individual tax return
Form 2555	Claims the Foreign Earned Income Exclusion
Form 1116	Claims the Foreign Tax Credit
Schedule B	Reports interest, dividends, and foreign accounts
FinCEN Form 114	FBAR reporting for foreign bank accounts
Form 8938	FATCA reporting for foreign financial assets

Not every expat files every form. The exact combination depends on income sources and the value of foreign assets.

Do I need to report my UK bank accounts to the US?

If you have bank or investment accounts in the UK, you may need to report them to the US separately from your tax return. This depends on the total value of your accounts and other reporting thresholds.

The US requires Americans abroad to report certain foreign accounts, even if no tax is owed. This is done through two main reporting rules: FBAR and FATCA.

FBAR vs FATCA: What you need to report and when

Requirement	Threshold
FBAR	US$10,000 combined foreign accounts
FATCA reporting	US$200,000 in foreign assets for single filers abroad

The FBAR (FinCEN Form 114) applies if your combined foreign account balances exceed US$10,000 at any point during the year.

These accounts can include UK bank accounts, investment accounts, and, in some cases, pension accounts.

FATCA reporting (Form 8938) may also apply, but only at higher asset thresholds and as part of your US tax return.

Note: Failing to file these reports can result in significant penalties, even if you do not owe any US tax.

How do I file US taxes from the UK?

Filing US taxes from the UK can feel complicated at first, but the process is easier to manage when you break it into clear steps.

Step-by-step guide to filing US taxes from the UK

Gather your income records: Collect documents that show your income for the year. Americans in the UK commonly rely on records such as:
- P60 forms or annual salary summaries
- payslips from UK employers
- investment or dividend statements
- records of self-employment or rental income
Convert income into US dollars: US tax returns must be filed in US dollars, even when income is earned in pounds. The IRS does not require a single official exchange rate. Most expats use a reliable yearly average exchange rate, applied consistently, though some income may require the rate on the date received.
Report worldwide income on Form 1040: Form 1040 is the main US individual tax return. Worldwide income usually includes:
- salary and wages
- self-employment income
- dividends and interest
- pension or retirement income
Apply tax relief for foreign income: After reporting income, many Americans abroad apply relief provisions such as the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC) to reduce or eliminate double taxation.
File additional reports if required: Some expats must also file extra forms, such as the FBAR (FinCEN Form 114) if foreign accounts exceed US$10,000, or Form 8938 if foreign financial assets exceed FATCA thresholds.

Once you know what income to report, which forms apply, and what deadlines to follow, the filing process becomes much more straightforward.

Are UK investments taxed by the US?

If you live in the UK, some local investments can create extra US tax reporting requirements. This is especially true for certain UK-based funds.

Many UK investment funds are treated as Passive Foreign Investment Companies (PFICs) under US tax rules. These investments can trigger additional reporting on Form 8621 and often come with more complex tax treatment than standard US investments.

Because of this, many Americans in the UK review the types of funds they hold to avoid unnecessary reporting issues. UK pension-related investments can also raise similar questions.

Also read: Passive Foreign Investment Company rules

How are UK dividends reported on a US tax return?

UK investment accounts usually do not issue Form 1099-DIV. Instead, you report dividends using your brokerage statements or annual summaries.

You also need to convert the income into US dollars when preparing your US tax return.

How are UK pensions taxed in the US?

If you live in the UK, your pension may still be subject to US tax rules. Even though UK pensions receive favorable tax treatment locally, the US may treat contributions, growth, and withdrawals differently.

Americans working in the UK often have workplace pensions or Self-Invested Personal Pensions (SIPPs), both of which can come with specific US reporting considerations.

Common UK pension types:

Pension type	Description
Workplace pension	Employer-sponsored retirement plan
SIPP	Individual pension with flexible investments
Personal pension	Individual retirement account
UK State Pension	Government retirement benefit

Some UK pensions may receive favorable treatment under the US-UK tax treaty. However, the exact result depends on the type of pension and the taxpayer’s situation.

For instance:

A UK SIPP usually triggers Forms 3520 and 3520-A reporting as a Foreign Grantor Trust.
Pension accounts may also need to be included in US reporting forms such as the FBAR or Form 8938 in some cases.

The complexity often depends on the underlying investments held inside the pension.

Also read: Self-invested personal pensions for American Expats

Are UK tax-free accounts taxed in the US?

Yes, in many cases. Some UK accounts that are tax-free locally do not receive the same treatment under US tax rules. This means income from these accounts may still need to be reported and taxed in the US.

ISAs (Individual Savings Accounts)

ISAs are tax-free in the UK for dividends and capital gains. However, the US does not usually recognize this tax-free treatment, so the income is often still taxable on a US return.

ISA treatment: UK vs US

Feature	UK treatment	US treatment
Investment income	Tax-free	Usually taxable
Capital gains	Tax-free	Usually taxable
Reporting	None required	May require FBAR or FATCA

UK funds and PFIC rules

Many funds held inside ISAs or UK brokerage accounts are treated as Passive Foreign Investment Companies (PFICs) under US tax law. These investments can trigger extra reporting and more complex tax calculations.

Because of this, some Americans in the UK choose US-based investments instead of foreign funds. The right approach depends on your situation.

What happens if I haven’t filed US taxes while living in the UK?

If you haven’t been filing US taxes while living in the UK, you’re not alone. Many Americans only discover their US filing obligations after spending years abroad.

The good news is that the IRS offers ways to catch up without facing the full range of penalties, especially if your situation was non-willful.

Two common options include:

These programs are designed for taxpayers whose failure to file was non-willful. When used correctly, they often allow Americans abroad to become fully compliant while avoiding significant penalties.

Many expats in the UK use these programs to catch up on several years of missed tax returns and reporting forms.

When should you consider professional help?

Catching up on US tax filings can involve multiple forms, including:

Form 1040
FBAR (FinCEN Form 114)
Form 8938
Form 2555 or Form 1116

Because the rules can be complex, many Americans abroad choose to work with a specialist expat tax firm to ensure everything is filed correctly. If you are unsure about your situation, the first step is usually to get a quote or review of your filing requirements.

Frequently Asked Questions

Do I have to report my UK salary to the IRS if it is already taxed in the UK?

Yes. The IRS still requires US citizens and Green Card holders to report their worldwide income, including salary earned in the UK.

However, reporting the income does not automatically mean paying US tax. Many Americans in the UK reduce or eliminate their US tax liability by using the Foreign Earned Income Exclusion or the Foreign Tax Credit.
What happens if my employer does not provide US tax forms like a W-2?
Many UK employers do not issue US tax documents. In that situation, expats usually rely on UK payroll records such as:

P60 forms

payslips

annual income statements

These documents can be used to calculate income and convert it to US dollars when preparing a US tax return.
Do I need to convert my UK income into US dollars when filing?
Are UK social security contributions deductible on a US tax return?

Generally, UK National Insurance contributions are not deductible as US income tax and usually do not qualify for the Foreign Tax Credit.

However, the US-UK totalization agreement often ensures that workers pay social security contributions to only one country at a time.
Do I still need to file if I already pay taxes through the UK PAYE system?
Usually yes. The PAYE system only satisfies UK tax obligations. It does not replace the requirement to file a US tax return.

Americans living in the UK typically file both:

a UK tax return or PAYE-based reporting to HMRC

a US tax return with the IRS
Can I contribute to US retirement accounts while living in the UK?

In some cases, yes. Americans abroad may still contribute to certain US retirement accounts such as traditional IRAs, depending on their income and tax situation.

However, if you exclude income using the Foreign Earned Income Exclusion, that income generally cannot also be used to qualify for IRA contributions.

File US Taxes from the UK Guide for American Expats

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Rose-ann De Villa, IRS Enrolled Agent and CPA, brings 15 years of expat tax expertise in US tax preparation, planning, and advisory for Americans and Green Card holders in the UK.

Rose-ann has been mentioned in the Daily Express UK news wherein she talked about Stimulus payments and Child Tax Credit refunds for US expats in the UK.