# Moving back to US Debt and tax questions!



## SXMFL (May 9, 2012)

Hi all,
My Husband and I have been married for 6 1/2 years, and now have a beautiful 3 year old daughter. My husband and I met while he was on a business visa in the states in 2003, we moved to St. Martin (Caribbean island) in November of 2005 and have been living here ever since. Since leaving the states we have had a child together, born in St.Martin, she has a French passport as well as a US passport, so she's all set. We will be filing from France.

My husband and I were young when leaving the states, so we did not take care of all our financial obligations before we left. My question is this: We will be applying for the green card/visa for my husband so we can start the process of moving back next year, and will the debt that he left in the states keep him from getting his application approved? I also have not filed taxes since living abroad - I left at 18, so I had NO idea I had to, I guess I need an accountant? He also has an unpaid parking ticket that hasn't been taking care of as well. So will any of these things keep our application from being accepted, or should we take care of all that before going back. 

He did have a SS #, should we put that on the I-130 form, or leave that out, seeing that it is a new visa application? We want to make sure we are going back fresh, so any information helps! 

SXMFL


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## Bevdeforges (Nov 16, 2007)

To get a visa for your husband, you will have to act as his sponsor - which means that you'll have to show your financial resources, and part of that is that you will be expected to get up to date on your US income tax filing requirements. Normally, you can get away with the current year (i.e. taxes for 2011 - due June 15th for those living outside the US) plus 3 years in arrears. As long as the filings indicate you don't owe any taxes (the most likely scenario), that should do it.

If you have savings or investment accounts that total $10,000 or more, you'll need to file FBARs (which are simply listings of your financial accounts with the maximum balance for the year being filed). These aren't tax returns, but just declarations.

If you've really got financial assets - like over $200,000 or so - you may be required to file FATCA forms along with your tax returns.

The forms aren't that difficult if your financial situation is pretty straightforward. If you have complicated investments, you may want to consult a tax adviser, but otherwise you mainly want to demonstrate that you don't owe any US taxes. 

Basically, declare you own income only - "exclude" it using form 2555, and then if you still owe any tax based on other earnings (interest, dividends, etc.) use form 1116 to take the tax credit for taxes paid to other countries. You should file as "married, filing separately" and unless you need it to bring your taxes due to 0, don't bother trying to claim your daughter as an exemption.

His unresolved debt shouldn't affect his visa chances, but he may find that it has put a damper on his credit history in the US. He should NOT apply for a new social security number (they really get squiffy about that if they find out you've had a number before - it smacks of fraud).

Before you can start the process of applying to sponsor him, you need to be in the process of moving back to the US - which means you need to start thinking about where you want to live, and how you're going to support yourselves when you get there. The application process requires you to have a place to live and some means of support (whether a firm job offer or a co-sponsor to cover you while you're getting settled).
Cheers,
Bev


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## SXMFL (May 9, 2012)

Thanks for the reply! We are already aware of the sponsor requirement, and are planning on asking a family member to co- sponsor him, just to make things go a little smoother. As far as the debt goes, we'll certainly try to take care of that when we go back, just glad it won't keep him from getting a visa again. I'll go ahead and put the SS# on the form, better to be safe than sorry!

For the taxes, since you are very wise, which forms exactly do I need to fill out?? the 2555 and the 1116? I don't have more than 10k and certainly not over 200k  Sorry, I probably should I looked more into filing taxes before I left..... they really should make filing taxes a requirement in school!! Thanks again for all your help!


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## Bevdeforges (Nov 16, 2007)

Depending on your level of income, you'll probably need to file a 1040 and a 2555 (to exclude your earned income). You only need the 1116 if your taxable income doesn't come down to 0.

Download publication 54 from the IRS website for the details on filing from overseas (and how to do the 2555). Check out the Expat Tax section here on the forum for general help.
Cheers,
Bev


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## bellakem (May 20, 2012)

I would suggest ordering a free copy of his credit report online via one of the credit companies (you get 1 free per year) . If the debts are over 7 years old, you just need to send a letter requesting them to take it off his record. You would have to send a letter to all 3 as they are not linked like that. The clock resets if you attempt to pay the debts, and will be on there for 7 more years! so be careful. It's a screwed up way to do things in my opinion..


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## Bevdeforges (Nov 16, 2007)

bellakem said:


> I would suggest ordering a free copy of his credit report online via one of the credit companies (you get 1 free per year) . If the debts are over 7 years old, you just need to send a letter requesting them to take it off his record. You would have to send a letter to all 3 as they are not linked like that. The clock resets if you attempt to pay the debts, and will be on there for 7 more years! so be careful. It's a screwed up way to do things in my opinion..


Just a note - it can be real difficult to get a copy of your credit report from overseas. If anyone has been able to manage this, perhaps you could share your experience with us. But the online sites won't accept requests from overseas addresses (or didn't last time I tried).
Cheers,
Bev


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## twostep (Apr 3, 2008)

bellakem said:


> I would suggest ordering a free copy of his credit report online via one of the credit companies (you get 1 free per year) . If the debts are over 7 years old, you just need to send a letter requesting them to take it off his record. You would have to send a letter to all 3 as they are not linked like that. The clock resets if you attempt to pay the debts, and will be on there for 7 more years! so be careful. It's a screwed up way to do things in my opinion..


Unless you have a US IP address you cannot request credit reports online.

A legally owed debt does not disappear after seven years:>) It cannot be re-reported.


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## bellakem (May 20, 2012)

As l understand it, the debt stays on your credit report legally for 7 years, 10 years if it is a bankruptcy. They have no obligation to remove it, and you would have to request that in writing. As far as for paying on old debt, perhaps it's better explained this way, when you pay on it, it affects your credit score, pulling it down because your debt ratio increases. The longer the sleeping dog lies, the less effect it has on your score, once you pay anything on it, its active again and moves to the top of your report, so it gets "re reported" because its active , not that you start the 7 years again. Sorry for the confusion.


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## stormgal (Sep 30, 2009)

bellakem said:


> As l understand it, the debt stays on your credit report legally for 7 years, 10 years if it is a bankruptcy. They have no obligation to remove it, and you would have to request that in writing. As far as for paying on old debt, perhaps it's better explained this way, when you pay on it, it affects your credit score, pulling it down because your debt ratio increases. The longer the sleeping dog lies, the less effect it has on your score, once you pay anything on it, its active again and moves to the top of your report, so it gets "re reported" because its active , not that you start the 7 years again. Sorry for the confusion.



The statutes of limitations (SOL) apply on all debt older than 6 years, I believe, but it depends on what State you're in and what kind of debt it is (meaning a car loan, mortgage or credit card debt). For simplicity, I will assume you're referring to credit card debt. Some States have a SOL of only 3 years. Debt does not stay on your credit report after 7 years. It just disappears and the agencies stop reporting it. If you happen to pull up your credit report and still see an old debt, you have every right to contact any or all of the three credit reporting agencies to have it deleted.

If anyone tries to sue you - meaning a junk debt buyer (or even the original creditor), you can always answer the legal complaint and claim that the SOL has expired the debt and therefore the company has lost its right to sue you. You are completely free of this debt! But please keep in mind that if you try to make a payment, you will restart the clock on the debt's clock and now the debt will not only reappear on your credit report but you will have to pay it! I think that it is sad that not many people know about this little bit of information and so they get themselves in a hole by their own ignorance...

Hope this helps!


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## bellakem (May 20, 2012)

Thanks for putting it so eloquently. In my state the SOL is 4 years. From her original inquiry, it sounds like its been more than 6 years, so her best option would probably be to do nothing.


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## SXMFL (May 9, 2012)

Thanks for all the replies! Hopefully by the time we head back (after 8 1/2 years) it will be gone  you've all been a great help!!!


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