US Student Loans (IBR) and Taxes whilst in UK

Okay so I’m hoping for any advice/opinions, I’m going to have my parents check with their accountant in the US to help me figure out what to do. But basically, I have lived in the UK for 5 years and I’m a dual US/UK citizen. I’ve been in uni since living in the UK and not made a lot of money or filed US taxes. I have a job now making decent money but well under the $90k threshold. My student loans (all in the US) will be coming due soon and they are quite high (I have multiple degrees-probably owe around $150k). I’m wondering if I file taxes as an overseas resident then my Annual Gross Income (AGI) ends up being 0? If I consolidate all of my loans into Income Based Repayment (IBR) and the repayment schedule is based on AGI then my payments will remain at $0? Although I make okay money, I’m still fairly skint after taxes and pension, etc. and helping to support my partner whilst he completes another degree. So paying a huge amount of student loans would kill me. I don’t really have any plans to live in the US again as I have a good career and no debt in the UK (although if I did get the same job in the US I’d likely make a lot more money). Maybe someone could convince me to renounce my US citizenship? Am I right about AGI/IBR?

I just moved over to the UK and I have my own student loan debt, this is what I have learned from my research.

From what I know, you are always to file US taxes for your income, regardless of if you hit the $92,000 threshold. The only difference is, you don't pay tax to the US unless you hit that amount with your earnings. Basically, the only way you stop filing US taxes is to die or renounce your citizenship.

As to your want to do income based repayments, I just set that up on my own debt this January. I'm putting a link here to the income based repayment form as a PDF so you can get an idea of what's required.
http://ifap.ed.gov/dpcletters/attachments/GEN1222AttachFINAL1845dash0102Expires20151131.pdf

My loans are held by NelNet.  The person I worked with to set up my IBR payments told me it's easier to start the application process for IBR with them, rather than online on the Student loan website because I was able to set up a $0 payment with them based on my current earnings, $0 as I was unemployed and staying that way for at least 6 more months on my Fiance Visa. Rather than a payment based off my last years AGI from my taxes. So I spoke with them, they started the process and I just had to send them the form I linked. You do have to follow up every year with proof of income, I'm not sure how that will work, as 2015 will be my first renewal of it.

Hope that was helpful.

*made some typos and they were bothering me.*

Hi guys,

I'm wondering if you have any updates regarding applying for IBR? It asks on the form if you have any taxable income, and since I make okayish money but no where near the threshold, I have income and could make low payments, but should I put that I have no taxable income, and thus the payment will be 0?

Hi guys,

I'm wondering if you have any updates regarding applying for IBR? It asks on the form if you have any taxable income, and since I make okayish money but no where near the threshold, I have income and could make low payments, but should I put that I have no taxable income, and thus the payment will be 0?

You should never lie on a government form. I only said I had zero income because I HAD zero income. I was unemployed from January 2014-October 2014. As you are living in the UK "taxable" income has nothing to do with whether or not you owe tax in the US. You're paying tax here in the UK and the US only asks for a cut when you make over $92,000.00.

To be honest IBR is not always the lowest payment option available to an individual. Have you discussed with your lender what your options are? I know mine will tell me what payment amounts are available to me on the different plans.

To be clear, I wasn't proposing lying on a government form. That would be idiotic, and it's sort of insulting that you insinuated I said that.

My understanding is the form asks for taxable income in the USA -- which is also what they said when I called them -- but also asks if that doesn't accurately show your income. Asking for followup shouldn't be shamed.

Your UK income is taxable in the USA, so it's asking for that.

I have IBR on my loans, based on my income in the UK.