Finally, we managed to get money from our US account into our UK account.  The best advice our US bank gave us was to use our Visa card to get a cash advance against our US account.  It worked, although the manager seemed a bit skeptical.  Was she suspicious that we were trying to run off with someone else’s money?  It’s our money, in our account, and we have ID to prove who we are.  Granted, the initial advice to initiate an international wire transfer from the receiving end was dud advice, but that wasn’t our fault.[ad#ad-1]

One of the reasons that we had such difficulty is that we are transferring money internationally, which meant dealing with the currency exchange.  Another reason, and probably the bigger reason, is that the US cards do not contain a special chip that the UK ones do.  We can use it to draw money from ATMs, but there are daily limits and you need to know the exchange rate, etc.  However, you may not use it as a debit card at any place here.  That’s because they have a special card reader that reads the chip.  At some places, they may be able to swipe it and use it as a Visa.  There’s no guarantee that it will work.  Our card has been rejected at several places.  Some places cannot even manually input the card numbers.

My question is, is this chip technology required in the EU?  Do all European countries implement it?  Will the US follow suit?  How much revenue is or will be lost if the UK shops cannot accept US cards?


Tax time again. Just got my W-2s, so I’ll have to get down to filing that return. Unfortunately, I’ve already run into some obstacles. The first is that we now have an international address and that may cause problems. And until we resolve those issues, we cannot file.

Yes, even though we’ve moved out of the country, we still have to file taxes. Our reason is obvious, though. We are expecting a refund. However, even if we weren’t, they recommend that we do. This is to ensure that we will be able to claim deductions in the future. Apparently, expatriates are not aware of that. However, their website does state that those expatriates who want to make up for the past should download the last 3 years of tax forms and start filing. There are no deadlines and they will not be fined. In addition, the filing deadline each year for those living abroad is automatically extended until June 16th. Nevertheless, if you owe money, it needs to be sent by April 15th. If you cannot file by June 16th, you must submit a request for extension by that date, in order to extend the deadline until October 15th. They will accept whatever date is postmarked on the envelope as the filing date.

Expatriates need to also be aware that if they live and work outside the US, their income may be liable to taxation from both the US and the foreign country. The current level of income that is excluded from US taxation is now at $85,700. Anything above that would be liable for US taxes. However, when you file, you may be able to claim foreign tax credit – that is, you may be able to deduct the taxes that you paid towards the foreign government. For more information, you should contact a tax advisor at the US embassy.

I think the real killer in this taxing business is the exchange rate. It is not based on the current exchange at all, but on the rate in 2007. For example, the UK exchange rate is currently at $2.0018 per pound sterling. That means, if I earned 40K in the UK it equals a little over 80K in the US, rather than closer to 60K, at the current exchange rate. Only a few more grand and I would be liable to double taxation. Fortunately, or unfortunately, I am currently unemployed.

Some people may be confused about which forms to fill out for filing their taxes. The simple rule is to assume your status in the US prior to living abroad. That is, if you are a US citizen or if you had been a resident alien, you should file Form 1040. If you were and are a US nonresident alien, then you use Form 1040NR. Nonresident status only applies to those who were not given full residential rights, such as temporary students.[ad#ad-1]

Finally, if you choose to file your taxes on paper (we have not done this in years), you may either turn it into the US Embassy in London, Paris, or Frankfurt (depending on where you live), or you may send it to Austin, Texas. And, if you have any questions, the US Embassy may be able to answer them. Or, if you were as lucky as I was, you will get a message stating they are understaffed and you may not have your call answered. They will instead direct you to call their Philadelphia office. I wonder what their walk-in service would be like.