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Topic: Postgrad Student Paying US Taxes?  (Read 1220 times)

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Postgrad Student Paying US Taxes?
« on: June 19, 2018, 11:26:35 PM »
I'm a full US Citizen currently enroled in a full time postgrad programme in London. I worked a job back home stateside before coming here and I am attempting to pay both my Federal and State income taxes. The total amount I owe is around $4,000 max before deductions and likely less then $1,000 total after.

I am trying to work with HR Block's Overseas tax Department since I have UK based expenses etc now. However, they have been incredibly slow, disorganised, and have been poor in communication in what they need from me. Ex. I uploaded my tax information in late Feb and they totally forgot about it for over a month and a half.

I am now past both the US filing deadline, the payment deadline, and the overseas deadline.

Is it worth pouring all of this work into getting them filed/payed, and dealing with an unhelpful tax preparation service at the moment? Or am I better off waiting until I'm back in the US to worry about it? I ask as the amount owed is minor and most of the people I read about in my situation who are facing consequences owe serious amounts of money (eg. more then $50,000).

I was wondering what I should do?

« Last Edit: June 20, 2018, 10:03:37 AM by ProStudent »


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Re: Postgrad Student Paying US Taxes?
« Reply #1 on: June 20, 2018, 12:29:46 PM »
Hi.

My first thought is to ask why you are going with the H&R Block overseas tax department - you should have been able to file your US taxes with the usual online H&R Block system, I would have thought?

As a post-grad, your tuition and fees should have been tax free if you are on a fellowship/scholarship that commenced in the last tax year (prior to 12/31/17). https://www.irs.gov/taxtopics/tc421

You may also get some credits for being in education - the online programs would walk you through your eligibility. https://www.irs.gov/newsroom/tax-benefits-for-education-information-center

I would strongly suggest contacting the IRS to ask if you can have an extension. You would have had an automatic extension to June 15 for being overseas. As you note, that has now passed.

https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad
https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad

I would assume that you will now have a penalty due on the amount you owe, with interest back to April 15th, because you didn't ask for the extension before the June 15 cutoff date, but perhaps you might find a sympathetic agent when you contact them. They can waive fees in some cases. (I owed them money I could not pay, years ago, and they froze the interest on it because it wasn't a huge sum of money and I was low-income at the time.)

In any event, the longer you wait to pay what you owe, the more interest you will pay. I would try to get the extension and then sort it out.


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Re: Postgrad Student Paying US Taxes?
« Reply #2 on: June 22, 2018, 12:09:13 PM »
Even with the extension to FILE, any tax due must still be paid by April 15th, so likely will be penalties, and definitely interest.

File ASAP - you can likely use TurboTax or something similar, which is the way most with simple returns do it.

The H&R Block overseas department has done you no favors, and a huge disservice. I would not be a happy camper, but that ship has sailed. Make the most of it - file the form for the additional extension, do the return ASAP and go from there.
Married December 1992 (my 'old flame' whom I first met in the mid-70s)
1st move to UK - 1993 (Letter of Consent granted at British Embassy in Washington DC)
ILR - 1994 (1 year later - no fee way back then!)
Back to US in 2000
Returned to UK July 2011 (Spousal Visa/KOL endorsement)
ILR - September 2011
Application for naturalization submitted July 2014
Approval received 15-10-14; ceremony scheduled for 10 November!
Passport arrived 25 November 2014. Finally done!


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