Cashing my check from the IRS

Hello,

I didn't realise I needed to file my US taxes, I know, I know, shame on me! But I've had a lot on my plate since moving here nearly 3 years ago.

I found an online tax accountant service and after research decided to use them. I got a great deal and filed my taxes.

Today I received a refund check from the IRS! Yay me and I went into Halifax to deposit it and am having a hard time understanding what needs to be done. I was told they will attempt to "negotiate" however if they cannot then they will "collect" and when I asked the banker to explain, she couldn't!!

Does anyone have experience with depositing a check from the US into a UK bank account?

Hello,

I didn't realise I needed to file my US taxes, I know, I know, shame on me! But I've had a lot on my plate since moving here nearly 3 years ago.

I found an online tax accountant service and after research decided to use them. I got a great deal and filed my taxes.

Today I received a refund check from the IRS! Yay me and I went into Halifax to deposit it and am having a hard time understanding what needs to be done. I was told they will attempt to "negotiate" however if they cannot then they will "collect" and when I asked the banker to explain, she couldn't!!

Does anyone have experience with depositing a check from the US into a UK bank account?

Huh... I've never heard of anyone getting a refund back on their taxes from overseas before.

Not paying anything to the IRS is usual since we don't usually meet or exceed the $92k threshold.

I'll keep my eye on this one. You've got me curious.

Hello,

I didn't realise I needed to file my US taxes, I know, I know, shame on me! But I've had a lot on my plate since moving here nearly 3 years ago.

I found an online tax accountant service and after research decided to use them. I got a great deal and filed my taxes.

Today I received a refund check from the IRS! Yay me and I went into Halifax to deposit it and am having a hard time understanding what needs to be done. I was told they will attempt to "negotiate" however if they cannot then they will "collect" and when I asked the banker to explain, she couldn't!!

Does anyone have experience with depositing a check from the US into a UK bank account?

This may help you to understand the process/terminology:
http://www.gocompare.com/money/cashing-cheques-in-foreign-currencies/#3JhUpOgDXAJudDFL.97

It has been many years since I have done this but I used to endorse the back of the cheque and send it to my bank in the U.K. (HSBC, although back then it was the Midland Bank). Weeks later £'s would appear in my account but lousy exchange rate.

(Now that I am back in the UK I am still receiving some US checks, and I have kept a US account and can do mobile deposits taking a photo of the cheque front and back etc.)

Huh... I've never heard of anyone getting a refund back on their taxes from overseas before.

Not paying anything to the IRS is usual since we don't usually meet or exceed the $92k threshold.

I'll keep my eye on this one. You've got me curious.

Lyonaria I have 3 kids so I received the refund from the credit the US gives for having children. I was shocked as well, I didn't think I would get anything!

Thank you durhamlad and Anchor, I did have a US bank account however didn't realise I had a payment go through and had a negative 5 cents so they closed it
Thank you for the info, I will definitely have to figure out what to do in the future.

Lyonaria, if you file using tax credits and have kids, you get $1,000 per kid! 

Mrs. Roberts, it'll just take a while for it to clear.  But it will!

Claiming a refundable child tax credit is the correct method. Hopefully the returns included UK child benefit as taxable income if you received any and considered how best to report any UK pension plans of which you are a member.

You will have lost out on several earlier years of up to $1,000 per child; so ideally would have filed rather earlier.

You will find it will take a few weeks for a British bank to clear a foreign cheque.  Now you have the money, you will also want to review if it might be taxable in the UK.

Thank you KFdancer and Guya

I figured it would take a few weeks but wasn't sure about the charges etc.

Just as an addition: "negotiation" means a faster form of getting money into your account, where the banks (US and UK) agree on a conversion sum, and the money appears in your account within a week or so.

 I do not know the exact form this negotiation takes, nor whether the sum that appears in your account is available for withdrawal immediately.

"Collection" is a six to ten week process where the cheque is sent back physically to the US bank, and various time consuming procedures which I also don't understand are used to make the US bank actually wire the real final amount to the UK bank.  In this case there is a huge delay but once the money is in, it's available for complete withdrawal instantly.

I know this because one of my offshore banks used to be able to cash US dollar cheques within a week by negotiation, but later changed to collection only with a 6-10 week delay.

Better to use a bank like Barclays as Halifax was a Building Society and is now a part of the Bank of Scotland.  I didn't even know they had a foreign department. I had no problem depositing a US Fidelity check at Barclays, it cleared in no time and the rate they used was excellent.   I think it cost around £10 but can't actually remember.

Thanks Tallyho,

I do bank with Halifax and both of my checks have cleared within 4 days! I was so surprised as thought I would be waiting weeks.