I finally received my FTP remission payment at the end of November. It was paid to my US bank account and I am curious as to how it should get factored in when I file my taxes because I moved to the UK in May. Can I claim those earnings as a UK resident rather than a US resident?

It would seem to me that I should either be allowed to claim it as 2011 US-based income (when I was in a lower tax bracket) or as UK-based current income (where I don't pay taxes on gambling winnings). Are either of those assumptions correct, or is there some IRS stipulation that will work against me?

If you are a US citizen you owe tax on your worldwide income. While gambling income is not taxed by the UK, a US citizen living in the UK will still have to file a tax return noting all of his income. (You may be able to use some combination of the US-UK Tax Treaty, foreign tax credits, and/or the Foreign Earned Income Exclusion to exclude your UK-based income from US tax. That won't apply to the gambling income because it's not taxed by the UK.)

Almost every US citizen is a cash-basis taxpayer. That means the income you received (the FTP remission) is earned in 2015 and reportable on your 2015 tax return. Now, if you included the income on your 2011 (or earlier) tax returns the remission payment isn't income (to that extent). You may also be able to exclude deposits you previously made. Otherwise, though, it's 2015 income to be noted on your 2015 tax return.

-- Russ Fox