Me and my wife will be filing as "married filing jointly" for tax year 2006 as RESIDENT ALIENS based on passing the substantial presence test. We left the US for UK in June and have lived here ever since ( I cannot claim closer connection to UK based on applications made for change of status in USA during 2006). Now, my question is - because I am filing as a resident alien, do I have to report income earned in the UK through sources having absolutely no connection with the US what so ever ? I was going to file taxes based only on the W2 sent from my previous US employer for the half-year that I earned wages there, and the 1099 forms from banks for earned interest.

Can someone with the knowledge or similar experience help please.