Thanks for any assistance you can provide. I am retired and have no salary or wages. I am a citizen of both the USA and the UK. I have lived in England for the past 25 years, filing USA tax returns each year. In England, I do not have to prepare a tax return, as I am not employed, nor self-employed. England takes its share up front from my annuity and/or State Pension. In the UK, I have an ISA (which is like a Roth IRA). All the income is tax free. I have not drawn on that. I live on my UK State Pension (which is like Social Security), paid monthly, and an annuity which had to be purchased (by law) from a private pension to which I contributed, also paid monthly. Both are subject to tax here in the UK. Also in the UK, I receive my USA Social Security, a reduced sum since I have the UK State Pension, which is sent to me in the UK monthly and deposited in Sterling in my UK bank. The USA Social Security should be taxed here in the UK (rather than the USA) since I live and receive it here; but, for now, I have chosen to have it taxed in the USA because the rate is less ( 20% here in the UK). The issue may come up in the future in the UK, but, for now, with no request for a tax return here, I let sleeping dogs lie. In the USA, I have Mutual Funds, some I set up myself and some from an inheritance from my parents. Those funds have grown over time, but I have not added anything to them in at least two years, and I have sold nothing (although a tax free bond from my parents matured in December---with a minimal gain). They sit and grow, I draw some tax-free income from them, and I get my 1099 each year and declare the dividends, interest, capital gains, etc., as I should. Last year, on the 2013 tax return, I had some UK Income from when I worked as a teacher, and I used FORM 2555 EZ, declaring the income but writing it off, as it was well under the applicable limit. I declared the gains and dividends, and interest, et al. In the end, I did not incur any tax. After I filled in the requisite worksheets, alternative minimum tax form, etc., my "income" for USA tax purposes was offset by my standard deduction and exemption. FOR 2014: QUESTION 1: Other than my address on the 1040, is there is any need or reason for me to confirm to the USA that I am a long time resident of the UK (with dual citizenship, having lived here for 25 years continuously, with no intention of returning to the USA to reside. Form 2555 or 2555 EZ (I submitted with my 1040 for 24 years) always seemed to resolve that potential query, but with no salary or wages or earned income, I don't think I can use that anymore. QUESTION 2 a, and 2 b. The UK annuity income I have written about was borderline $10,000. The UK State Pension income was $9726 (gross), $7678 (net). Net is what I received after the UK took out its 20% tax share--what I received in my bank after tax. I am not quite sure whether to use the gross figure or the net figure (what I received). And where should I place those figures? Last year, I put them together in box 16a, but put the taxable amount as zero in box 16b. As the total was under $10,000 I did not need to submit Schedule 8833; but I did state on the 1040 that the monies were from a UK annuity and State Pension in a few words. This year, I can do the same but the total amount (annuity and state pension) exceeds $10,000. Thus, must I submit Schedule 8833 which is short but seems complicated to me nonetheless? I am not sure how detailed it has to be. I did wonder if instead, I should/could put the annuity in box 16a (as it is definitely a form of pension), but add the UK State Pension to the USA Social Security Payment in box 20a although not count the UK portion in box 20b. The UK State Pension is similar to USA Social Security, everyone who works 40 quarters gets it. If I do not join them in box 16a (and use 16a for one and 20b for the other, do I still need to submit Schedule 8833? And if not, how do I explain it---or do I even need to? I am relying on the Double Tax Treaty between the USA and the UK, ARTICLE 17 (which says that pensions and social security earned from and received in the UK, are to be taxed in the receiving/resident country). In sum, where do I place the UK Annuity and the UK State Pension on the 1040? And can I avoid Schedule 8833 (there seem to be several exceptions, e.g. pensions, annuities, soc. sec.) or must I complete it? And if I can avoid it, how then do I explain why I am not including them for tax purposes----on the 1040 in a few words, separate letter? For me, the briefer and less obvious, the better. Last year, I just wrote, UK Pension, and UK State Pension. QUESTION 3: I placed the appropriate figures on the Qualified Dividends and Capital Gain Tax Worksheet tax, and found, that according to that form, I owe no tax. Line 1 is $6885, line 4 is $11,265, line 25 is zero, and line 26 is $688, but line 27 is also zero and since I am not using Form 2555-EZ, that amount (zero) goes on Line 44 of the 1040. Correct? Thoughts?