# Back filing taxes, need to hire a service or can do on my own?



## yavanzhai55 (Mar 13, 2021)

Hello, thanks in advance for the help. I've looked through previous posts, but didn't find answers to all my questions. For background, I've been living outside the US for 7 years and just found out I'm supposed to file taxes. I've never earned close to $100k and I don't think my bank account balance has crossed $10k except maybe for a day this year (2021). If it matters I'm married to a foreign national.
I have a US debit card account and have been paying my student loans and credit card debt all these years. I finally just paid off all my credit cards and want to start doing some investing, so want to make sure everything is in order. I get paid local currency into a local bank account (Singapore), and have always just wired money back to pay for the debt mentioned.
From looking through past posts I understand I will need to file for the past 3 years. I saw FBAR is for 6 years, but if I haven't ever had more than $10k USD do I need to file those? I am also wondering if I an use a DIY service like TurboTax or should I bite the bit and pay someone to help? It looks like there are online services ranging from $300 to $1k+. Do I need to file for state taxes as well (WA)? I'm guessing that even though it would only help me if I owed taxes, which I shouldn't because of my income, I'll also need to file details of my student loan payments? Thanks again!


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## Nononymous (Jul 12, 2011)

In case you weren't aware, if you have student loans on an Income Based Repayment scheme, claiming the FEIE will reduce your payments to zero (as they are based on "Adjusted Gross Income" after applying the FEIE). After 25 years the loans are forgiven (although the principal amount is then considered taxable income). Pretty good deal if you don't plan on returning to the US. (Then again, if you don't plan on returning to the US, you can basically walk away from student loans and credit card debt!)


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## Bevdeforges (Nov 16, 2007)

yavanzhai55 said:


> From looking through past posts I understand I will need to file for the past 3 years. I saw FBAR is for 6 years, but if I haven't ever had more than $10k USD do I need to file those? I am also wondering if I an use a DIY service like TurboTax or should I bite the bit and pay someone to help? It looks like there are online services ranging from $300 to $1k+. Do I need to file for state taxes as well (WA)? I'm guessing that even though it would only help me if I owed taxes, which I shouldn't because of my income, I'll also need to file details of my student loan payments? Thanks again!


If you go the Streamlined Compliance route, you need to file the current year (i.e. 2020) plus 3 years back (2019,2018,2017). If you don't have a combined high balance of at least $10,000 in any of those years you don't have to file an FBAR for the years where you don't meet the threshold. 

If you decide to go with a DIY type service online, you may want to check to see if you can file the current year's returns using the IRS free-file set-up, just to get the hang of how the forms work. There is usually a limited selection of free-file services available to overseas taxpayers - and of course it's only for the current tax year. For your back filings, you may have to buy the relevant software for each of the years you backfile - and you'll have to file those returns on paper. But first see if you can use your 2020 returns as a guide for doing the paper returns on your own. Tax services are super expensive - as you note - and if your situation is relatively simple with little or no taxes due, a "good faith" effort is usually more than sufficient. (And no, you do not need to file a state return unless you have ongoing ties to the state that constitute a "tax residence" there.)

I don't know much about student loans and how (or whether) they need to be reported on your Federal returns so I'll let others advise you on that score.


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## 255 (Sep 8, 2018)

yavanzhai55 -- Bev is correct, as far as your filing requirements: "If you go the Streamlined Compliance route, you need to file the current year (i.e. 2020) plus 3 years back (2019,2018,2017). If you don't have a combined high balance of at least $10,000 in any of those years you don't have to file an FBAR for the years where you don't meet the threshold."

As far as your tax filings, I personally would forgo both paid advisors or buying tax software -- all the required forms (including past years) are available on the IRS website, for free. Internal Revenue Service | An official website of the United States government (irs.gov) Most of the forms are "fillable, so just complete them on-line, print them off, sign where appropriate, and dispatch them to the appropriate IRS office for foreign filers (see 1040 instructions.) 

WA (Washington?) has no state income tax -- so nothing to file there. Even if it did, you've been out of the system for 7 years, so don't "rock the boat."

The FEIE and any foreign tax credits will eliminate any U.S. taxes owed, so we're really just talking about a paperwork drill (except of course for the stimulus payments for TYs 2020 and 2021.) If you haven't received the two stimulus payments for 2020, you'll be able to claim them and receive a refund on your 2020 taxes (line 30, IRS form 1040.) Also any other credits that might possible be due (EITC maybe.)

Congratulations on paying off all your credit cards!

Reference your student loans, they are debts -- no filing required for paying off (or on) a debt. In certain circumstances, you may be able to deduct interest paid, as an adjustment to income on IRS form 1040, Schedule 1 2020 Schedule 1 (Form 1040) (irs.gov) In your case, the FEIE should eliminate any tax liability, so any adjustment will be for naught (unless you income increases significantly.) Please stay abreast of what's happening in Congress -- there is much talk about some level of student loan relief. Cheers, 255


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