US and UK Income within Same Tax Year

[krysanders]

Hello, I’d appreciate some advice please as I’m trying to figure out how to file my taxes for 2024. I am a dual citizen with the US and the UK.

I have US earned income while living and working in full time employment in the US during January and February 2024. In March 2024, I left the US to move back to the UK due to pregnancy (I have owned a property in the UK since 2022). I have not been in full time employment for the rest of 2024 but receive a government payment of a care allowance for care needs for an individual, paid by the UK government at a small amount of £350 a month. 

1) For 2024, would I be correct to file with my residence address abroad since that’s where I was the majority of 2024? 
2) Do I need to report the care allowance income on my US tax form or is the amount too small? Where would I report this if so? 
3) Since I have income for Jan & Feb 2024 working in the US, don’t I need to file a State return as well? 
4) What forms do I need to complete my US 2024 tax return? [I have one employment role, one 401k which rolled into a traditional IRA, a HSA account, a HYSA, and two bank accounts] 

5) What do I need to report from the UK side of things? [No current employment other than the care allowance, a few bank accounts (two earning interest), no UK investments (didn’t want to complicate things)]

Thank you in advance.

[MaryK4]

1. Yes, you file the tax return with your current address- where the IRS can contact you if they need to.

2. The UK Carer's Allowance is treated the same as it would be in the U.S.  It seems that is is akin to the Medicaid Waiver payments, which is not taxable income in the U.S. so you would not have to report it. 

3. Yes, you ay have to file a state tax return.  You should also check the state requirements for changing your domicile.  

4. You would file a 1040.

5. Since the UK does not require you to report worldwide income, you would not be required to file a return if your only income was the Carer Allowance- however, you may need to report the intertest income (depending on the amount you received while a UK resident).