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I am a US citizen living in a foreign country and will soon naturalize, which means I must renounce my US citizenship (dual citizenship is not an option).
How will this affect my IBR payments?
If I am no longer a citizen, will I lose the IBR?
Will my IBR be calculated directly on my foreign income?
Would I continue filing taxes with the IRS for the purpose of my student loans if I am able to retain the IBR plan?
To be clear, I am NOT attempting to avoid my debt or repayment. I am simply trying to plan for the future and know what to expect.
Currently, my payments are $0 since my income is not above the foreign income threshold. Yes, I still make payments on my loans, even though I am not technically required to make a payment. However, if I lost the IBR then the actual monthly payments would be too high for me to pay (it would be 80% of my paycheck). I own nothing of value and have zero assets except a small bank account with meager savings. I have been on the IBR for 5 years and have managed to pay 15% of my earnings to my debt each year.
Sincerely, Thank you for your time and help.
that I interrupt you, but it is necessary for me little bit more information.
Hello,
I am also interested in this information. Are there any resources available to read about the particular scenario of having renounced US citizenship and remaining on IBR repayment plans?
thank you
Hello, sadly I’m not a professional in this domain so I can’t help you directly with your question and needs. However, I’ve been paying taxes myself, and I have a way to plan everything just to be prepared when the payment day comes. For example, I make a pay stub online on a platform and print it out as time passes, I can get the details that need to be changed, and I’m well prepared for what is coming next. I’m not sure if this is helpful for you, but you can try and see what you have to expect.