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



## jiwkei (12 mo ago)

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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## 255 (Sep 8, 2018)

@jiwkei -- No need to hire anyone. It sounds like your taxes are fairly simple and you shouldn't owe anything (and would even qualify for a refund, if you haven't received the "stimulus" payments.) Just a "paper drill." The F.E.I.E. or FTC should mitigate your offshore earnings, since you are under the limit. Just make sure any DYI software accepts IRS forms 2555 & 1116. In the past, I routinely used the "free" fillable forms on the IRS website, but you'll get your refunds quicker, if you file online. If you are under the FBAR limits, you do not need to file the FBAR. WA does not have state income taxes -- so there are no forms to file there. There are also various education credits and deductions for student loan interest that you may be able to avail yourself. Cheers, 255


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## Bevdeforges (Nov 16, 2007)

jiwkei 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?


Right - though I've often seen it posted as "current year plus 3 years of backfile." At this point, that means you should probably file your 2021 return first (by June 15th of this year - you get an extra 2 months for filing from overseas) and then file the three back years 2020, 2019 and 2018 as your "streamlined" filing following the instructions on the IRS website Streamlined Filing Compliance Procedures | Internal Revenue Service

You only need to file FBARs for any years in which the combined total high balances in any and all foreign accounts exceeds the $10,000 mark. (Though if it makes you feel better, you can always file the current year, showing how far beneath the $10,000 threshold you are and let them figure it out from there.)


> 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+.


Fill out the forms for 2021 first, trying to do them just from the instructions for the various forms. (Definitely skim through IRS Publication 54 on "overseas taxpayers" - just don't get lost in the detail that may or may not apply to you. If you get stuck, see if you qualify for one of the IRS free-file programs and see if that makes it any easier. (There are only a couple of the participating tax prep companies that offer free file services for foreign residents and it changes every year.) Ideally, you should probably file as married, filing separately, especially if you have limited income (avoids having to include your spouse's financial data if you want to file jointly, though you lose a couple of "advantages" as MFS). 

If you can get through the current year return without too much difficulty, use that as a model to prepare the 3 back years. (Be sure to download the correct years' forms from the IRS website - they change a little bit each year.) The goal is a "good faith" return, not perfection. If your situation is fairly simple it will take you some time to get used to the forms, but it avoids all the tax prep fees and angoisse.



> 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?


If you've been living overseas for 7 years, don't bother filing any state forms. A few states have reputations for being unwilling to give up their residents, but even those states won't bother if it's clear from you Federal forms that you don't owe anything. Keep it simple and keep it honest.


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