American Student Loans and UK Taxes

I'm trying to organize a general budget for myself and my husband so that when I am applying for jobs next year, I have a general idea of how much we need to survive.

I found a website online that helps calculate UK taxes so that I can have a general idea of what my "net" salary will be. It has a button for "include student loans" but it doesn't allow me to put in my own figure.

My main question is - if I am paying student loans that are American, will that figure into my UK taxes at all?

I will be paying about 12,552.72 pounds a year towards my American student loans (according to the current exchange rate of about 1.65). I am a total dunce when it comes to business and personal finance so this is a huge stretch for me, but budgeting is important - and I realize I will have to draw up a budget for my ILE as well. Sigh! I really appreciate any help!!

No, I wouldn't think your American student loans would have anything to do with your UK taxes. I think you would include that separately on your budget.

Over here UK student loans get taken out of your pay cheque automatically once you reach a certain earnings threshold, so it's probably got an automatic calculation for it and that's why you can't put in your own number. US student loan payments have no effect on your UK taxes, but you can get a US tax credit for the interest you pay.

Over here UK student loans get taken out of your pay cheque automatically once you reach a certain earnings threshold, so it's probably got an automatic calculation for it and that's why you can't put in your own number. US student loan payments have no effect on your UK taxes, but you can get a US tax credit for the interest you pay.

Thanks - that makes sense now!

US student loan payments have no effect on your UK taxes, but you can get a US tax credit for the interest you pay.

Correct me, please, if I am under the wrong impression (keep in mind, too, that I'm brand new to learning all of this, too), but I thought that I wouldn't be filing US taxes on the wages I earn in the UK. Or, that after a certain period of time that I wouldn't be filing them, at least. Does this mean that I can expect to do so?

I'm worried now that this actually makes it more expensive to pay back my student loans than I initially thought.

Correct me, please, if I am under the wrong impression (keep in mind, too, that I'm brand new to learning all of this, too), but I thought that I wouldn't be filing US taxes on the wages I earn in the UK. Or, that after a certain period of time that I wouldn't be filing them, at least. Does this mean that I can expect to do so?

I'm worried now that this actually makes it more expensive to pay back my student loans than I initially thought.

You must report your UK earnings. This does not necessarily mean that you will pay US income tax on those earnings; your first $82,400 is exempt from US income taxes. You will be taxed on your foreign wages that exceed that amount, but credits and exemptions exist that will help reduce what you owe.

If you are from a state that has a state income tax, you may also be required to file a tax return and pay state income tax on your foreign earnings as well.

For more information on this, check out some other threads in this board.

For more information on this, check out some other threads in this board.

Will do! Thanks!