Post: #1

I was hoping to get some advice on moving back to the US from Europe.

For some background, I've been here since college graduation (about 7 years now) so the US feels like a foreign country in terms of logistics. Some questions:

- Taxes: I haven't filed any in the US since I moved abroad. I know this is a problem, but will I be jailed or slammed with penalties? I pay significantly higher taxes in Europe than I would in the US, and I have pay stubs and work contracts for when I do decide to file. Best to get a tax advisor as soon as I get back?
- Health Insurance: Is it still possible to get decent insurance through an employer, or do private plans through ObamaCare actually work? When would I be required to have it after moving back?
- Credit: My credit is abysmal in the US but perfect in the EU (Germany, UK). Will it be difficult opening a new US bank account because of this? Mostly just defaulted student loans since I couldn't pay from Europe.

The good news is that I'm eligible to have all my tax contributions in Germany (about €40k in social security) refunded back after 2 years being outside the country.

Any advice on getting set up again back home would be appreciated. This seems like a nightmare when moving between countries in the EU is cake.

Post: #2

For taxes, you will want to speak with an adviser. I am not sure but I think it depends on how much you actually made if you even have to file or not (like over a certain amount)... I am not completely sure but my friend lived abroad and he said something similar to that effect.

For health insurance, yes, it is still possible to get decent insurance through an employer. As to whether or not you can get an Obamacare plan, it depends on the state you return to because some states have their own health care exchanges. I work in healthcare. I live in a state that was part of the federal exchange but I work in a state that has their own state-run exchange. From what I have seen, most of the new plans are simply Medicaid plans. They did increase eligibility to get onto Medicaid but I doubt that is you. If you are coming back to work for a major company, you wont have a problem getting healthcare as a benefit but if you work for a small business, it depends. I heard lots of small businesses had to drop their benefits and their employees had to go to the exchanges.

Will you have trouble: Opening a bank account, no. Opening a credit card, maybe. Getting a loan, maybe. Also, are your student loans truly defaulted? Most student loans you cannot avoid paying.

Post: #3

Unless you were making way over $100K, you almost certainly don't owe any U.S. taxes, but failure to file is still an offense. It's not an offense which is prosecuted except in extreme cases, though. For example, illegal aliens who worked off the books or using a fake SSN and never filed tax returns often have to file all their back returns for years, but aren't prosecuted when they get their Green Cards through marriage or other laws.

I think the best strategy there is to prepare all of the back returns then consult with a good tax lawyer specializing in individual cases to determine the best approach to the IRS. Or maybe just stop by an IRS office and talk to someone (without leaving your name).

The concern isn't really prosecution, but the IRS assessing a penalty.

Post: #4

Sp5, you like grape nehis?

Post: #5

Did you have any american credit cards prior to leaving? If so, they should still be reporting on your credit reports. If you have no cards, old closed cards still report for 10 years usually. This would help you, because you'd still have credit history on file file. This puts you in a great position comoared to someone without any credit history.

What's up with defaulted student loans? Were these from the gubbamin? If not, you need to find out the state of limitations etc on these. You need to become a credit expert dude, or you're gonna get sued and slammed. But if you put a little effort in planning, you'll be fine.

Post: #6

Thanks for the tips here everyone.

On my student loans: I received a medical discharge from the Army (Honorable) but because my contract ended before 6 years, my grants were turned in to loans. They're all Federal, I have no private loans. By that time I was out of the country and they defaulted. I know they can garnish wages & withhold income tax, but only if I file US taxes (which I don't). It's also possible to underreport my earnings abroad so any income-based repayment option would be more favorable.

Paying them back is no problem as a comparable job in the U.S. would put me around $75-80k and I'll have enough to cover the loans ($50k) from my German tax refunds, but this will take 2 years.

I don't have American credit cards unfortunately, only EU stuff (e.g. I took out a loan and paid it back early) so I'm sure renting or getting a car will be a headache.

Post: #7

(01-12-2015 04:40 AM)Blick Mang Wrote:  Thanks for the tips here everyone.

On my student loans: I received a medical discharge from the Army (Honorable) but because my contract ended before 6 years, my grants were turned in to loans. They're all Federal, I have no private loans. By that time I was out of the country and they defaulted. I know they can garnish wages & withhold income tax, but only if I file US taxes (which I don't). It's also possible to underreport my earnings abroad so any income-based repayment option would be more favorable.

Paying them back is no problem as a comparable job in the U.S. would put me around $75-80k and I'll have enough to cover the loans ($50k) from my German tax refunds, but this will take 2 years.

I don't have American credit cards unfortunately, only EU stuff (e.g. I took out a loan and paid it back early) so I'm sure renting or getting a car will be a headache.

Student loans are specifically excluded from any "expiration" , bankruptcy, statute of limitations, and are extremely hard to get discharged-- you'd have to be seriously disabled like lost both legs and can't work.

So the banks keep the profits and the taxpayers cover any losses. Socialize the risk and privatize the profits.

However, because they don't want to put the loans on the books as a loss they are extremely flexible with paying back.

Lenders won't mention it to you but if they are government loans they MUST allow you to do Income Based Repayment IBR, ironically started the Bush administration.

It makes payments no matter how much your loans something like 15% of the amount you make in excess of 150% of the poverty income for your family size. The payments come out very reasonable.

If you call them up and negotiate you are much better than if they come after you, they use trailer park collection agencies that impersonate people, lie and harass you at work.

If you get a job, they generally find out you have a job and start harassing you. Much better to be proactive.

When I was having problems they called me up and pretended to be offering me a credit card-- the collection agency was impersonating a bank employee. Once they found out where I worked they started calling up the company and harassing them.