# US Cit did not pay US taxes 4 years, issues when retruning to US?



## rbotes (Aug 20, 2010)

Hi I am hoping for some advise or help. I am a US citizen living in the UK for 4 years and we are thinking of returning in about 2 years time and have never paid US taxes while I have been here(I don't live there so why should I??) but having now exploring the forum it seems I should have been! (still wrong in my eyes)

When I go apply for my husband's visa to move to the US with me (UK citizen) will this hurt us since I will be a sponsor? We will also use my mother as a co-sponsor as we won't have a house yet or maybe a job so does this help as she will have her taxes done?

I have huge government school loans I don't pay and keep putting in forbearance every few years, does this hurt the application??

I have worked most of the time I have been here but just don't tell the US this as I have enough to pay for here, will I have to pay back taxes with late fees etc.????

I appreciate any help as I am desperate to return home soon

Thanks


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## ddang (Jun 21, 2012)

I can't help but I'm really interested in an answer to this as well.

I've been here in the UK nearly 3 years, myself US citizen and husband is UK citizen. I have only worked a year and my pay was under $10k US dollars so I never claimed taxes either. Only my husband has been making money really and since he is UK citizen and we both pay UK taxes I didn't see why I should do my US taxes as I didn't make enough. My dad will also be co sponsoring my husband since I won't have a job or house till I can get back to the states and job hunt. I've always paid my US taxes until I left and never really earned enough here. I know I will have tax returns for my dad when I apply for my husbands visa but I won't have any for Myself for the last 3 years. I do wander what will happen?!


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## DavidMcKeegan (Aug 27, 2012)

First off, don't worry- you are actually in a very common situation and one that is remedied quite simply with paperwork.

Secondly, you are actually very unlikely to owe anything at all to the US. Just because you have to file a return does not mean you will owe taxes. As you are already paying such high taxes to the UK, using a Foreign Tax Credit alone should eliminate any US taxes owed. If you are making less than 100K, you could also use the Foreign Earned Income Exclusion to eliminate any US taxes.

As you have not filed in a while, I would strongly recommend getting caught up while you are still under the radar. The most popular way to get back on track right now is with the Streamlined program. With the Streamlined program you can file the last three years of tax returns and six years of FBAR (FBAR's are needed if you have more than 10K in foreign accounts), and be considered caught up on your US tax obligation.

It is especially important to get on track with your US taxes if you plan on moving back to the US. If you need to sponsor your spouse, you will need at least the last three years of tax returns to include with your visa application. I believe that even if you have a co-sponsor, you still must show your tax returns.

If you are financially savvy, then you can likely complete the forms on your own. If not, then I would strongly recommend hiring an expat accountant. There are many out there, so I would recommend speaking with a couple to find the best fit for your situation.

I hope this helps and good luck!


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## Bevdeforges (Nov 16, 2007)

Like David says, the situation is not that uncommon and fairly easily remedied.

First of all, take a look at IRS publication 54, which explains most of what you need to know about filing from overseas. Publication 54 (2013), Tax Guide for U.S. Citizens and Resident Aliens Abroad is the online version - or you can download a pdf file to have the whole thing in print.

When you go to file for your husband's visa sponsorship, you'll be asked to prove that you are "up to date" on your Federal tax filings. Depending on your filing status (usually, from overseas, you file as "married, filing separately" so that only your earnings are counted) you may not have even had to file during some or all of the last three years, however to support your spouse's visa application you will need to backfile for three years just to "show" them what your status was. If most of your income is from a job, the easiest approach is normally to just take the Foreign Earned Income Exclusion and be done with it. You don't need an ITIN for your husband, nor do you need to include any of "his" earnings on your US tax forms.

And, if you're planning on moving in "a couple of years" it might be best to start filing now so that you'll have your full 3 years filed by the time you need your "proof."

Don't know how things work with student loans (I'm too old to have had to deal with them), but they shouldn't affect your ability to sponsor your spouse for a visa. Once you get back to the US, though, you'll have to deal with them in some manner.

But start on it now. Under the streamlined compliance program, as long as you're resident overseas, you just have to file and be done with it. Streamlined Filing Compliance Procedures Once you're back in the US, things get a little trickier (not to mention more expensive).
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

rbotes said:


> ....have never paid US taxes while I have been here(I don't live there so why should I??)....
> 
> I have huge government school loans I don't pay....


As an aside, many people would think you've just answered the "why should I?" question. Student loans are government subsidized and government guaranteed, and taxes partially pay for that program (and many others) _on a lifecycle basis_. (Even those who fully repay their loans only partially contribute to the full cost of the student loan program.)

U.S. student loan debt is highly collectible and recoverable (to the extent allowed by law), so it's quite likely you will start paying (in compulsory fashion) a larger portion of the full taxpayer cost of your debt upon your return to the U.S.


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## rbotes (Aug 20, 2010)

Thank you everyone that makes me feel a little better that I most likely not pay any money actually and that I can get it fixed before we move and I know that I have to pay back the school loans in time , just id not it to hit us while we are here.

Thanks


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