How do you file taxes as an American expat?
Posted by honestserpent@reddit | expats | View on Reddit | 39 comments
Me (Italian) and my wife (US citizen) live in Italy. Every year she go through the painful process of filing taxes. In the past she used turbo tax and last year tax act. Problem is, her US credit cards expired and this year, contrary to last year, TaxAct requires a payment which can only be done with a US credit card.
We have kids and filing correctly means receiving 1000s of $ for children.
What service do you use?
mabexim@reddit
Ugh, that expired card roadblock sounds incredibly frustrating, especially when you're trying to claim thousands in Child Tax Credits. Standard US software like TaxAct always seems to glitch out when you try using it from overseas.
You guys should check out Expat Tax Online instead. They deal specifically with Americans living abroad, so they completely get the payment logistics and know exactly how to maximize expat child credits without all the typical glitches. For us, it's a lifesaver for skipping that annual tax headache.
Bookluster@reddit
https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free
My spouse and I were under the AGI limit with out combined incomes (both US citizens living in S. Korea) and used the free software program to file.
internetetmoi@reddit
This requires a US cell phone number... which I do not have because I do not live in the US...
WafflerTO@reddit
relevant? https://apnews.com/article/irs-direct-file-tax-returns-free-trump-4bb0bca02fab9b3d06ae6f45ac67b7ab
Bokbreath@reddit
I don't use a service, I download the forms, fill them in and mail them off. The first time you do it will take some careful reading but once you have one valid return you can crib from it next year. Mine takes about 6 weeks for the refund to clear.
Gloomy_Challenge_137@reddit
Would you mind sharing which forms you download and from where? Thank you!
Bokbreath@reddit
https://www.irs.gov/forms-instructions
Gloomy_Challenge_137@reddit
awesome, thank you so much!
biotechconundrum@reddit
Yeah, if you are just tabulating income and using the FEIE or foreign tax credit and have a simple case without anything crazy going on in the US, it's a few forms and generally you're just zeroing out your liability with either the exclusion or credit and it takes maybe 2 hours to do it. Why pay for it? I always just did it myself. I greatly prefer using the foreign tax credit (from a higher tax country than US anyway) because it gives you an AGI that lets you keep contributing to a Roth IRA. The form is a bit more annoying but once you fill it out once, you can use it as a template each year.
EscapeKind9072@reddit
I have an accountant friend who does the taxes for me. She’s pretty good and not too expensive. https://frwvirtualtaxandbookkeepingservices.com/
Objective-Toe3091@reddit
Nothing against DIY software, but I’ve had many clients come to me after receiving IRS notices from returns filed through Block/TaxAct. If you have anything even slightly complex (especially expat/international pieces), I’d strongly recommend using an accountant to avoid headaches later.
mohamed427@reddit
You would be better off seeking the services of a US attorney.
hunnersbomb@reddit
0
Sure-Produce-3896@reddit
I keep a spreadsheet for everything, so when I needed to understand penalty abatement criteria, I called Anthem Tax Services just to confirm the documentation order.
Several_Emotion_4717@reddit
My friend used to take someone's help to do it, but he also mentioned that there's this upcoming platform in which expats can manage their money and tax world-wide. Don't remember the name though.
gadgetvirtuoso@reddit
I’m guessing she doesn’t have a US bank account at all? A debit card would work. No friend or family she can ask?
My tax guy has done mine in recent years. He was a former expat too. https://livingabroadtaxes.com/
3_Seagrass@reddit
Hi, just a quick question, are you happy with his services and would you recommend him to other Americans living abroad?
gadgetvirtuoso@reddit
I am and I have.
3_Seagrass@reddit
Thank you!
Narkanin@reddit
Keep a credit card? Do you have any friends or family in the US you can use as a mailing address and they can send it to you?
al_tanwir@reddit
I've tried a few options out there like expatfile, but I just don't like the headache of having to manage that sort of stuff. And my situation is a bit unique with my self-employment/company work.
For the past few years, I've found evotax.us, the guy Yasin does everything for me, he doesn't doesn't charge upfront which is pretty cool. (He's on Insta too)
I just send all my invoices to him and he keeps me updated on my refund.
asselfoley@reddit
I don't
Caliopebookworm@reddit
I hire an accountant that specializes in expat tax returns.
honestserpent@reddit (OP)
How much do you pay? Where did you find it?
Caliopebookworm@reddit
Around $65usd per return and I searched for US Expat Tax Specialists.
PurpleNurple105@reddit
TurboTax takes PayPal and H&R Block accepts non-US cards. I got audited a few years back with H&R. Since then I use an accountant in the US. My taxes are simple so it doesn’t cost much.
slainte2you@reddit
I have used https://expatfile.tax/ for the past couple years and am happy with it.
According_Horse_1067@reddit
I have also used expat file. Kinda expensive but overall have had no issues
Intrepid-Leather-417@reddit
Also had good experience with their service
akiber@reddit
I’ve used this successfully as well until my taxes got more complicated.
Be aware you probably have to file an fbar as well which you can do on your one! There are few good YouTube video explainers on how to do it
denareru@reddit
Same! It's a bit more expensive but is easier since my husband is not from the US.
Mysterious-Ad-6690@reddit
I’ve been using my expat taxes with good results, although at times it’s difficult to get answers to basic questions. I think they offloaded some operations to contractors outside their office last year.
akiber@reddit
Just to add that if she is declaring foreign earned income then she can’t get the child credit on it. Thats what my accountant told me. But she should fine regardless so its not a future headache
ShiftyBastardo@reddit
used TFX for the first time last year, and would recommend them.
full service, fair price. they even send reminders when quarterly tax payments are due.
No-Pea-8967@reddit
I have a professional and use Wise for the payment/refund through an ACH which means I have an American ABA and account number. Would that work for your partner?
NeNeJBeanie@reddit
I have not tried either of them yet but these two sites are specifically for expats...
MyExpatTaxes https://share.google/za0g0IJuOuze1HkH2 Or Expatfile https://share.google/iOrhIbN5NX8tvhsj2
Also maybe check this article out: https://www.reddit.com/r/USExpatTaxes/s/6VeoWfJ22Z
jatguy@reddit
This is another service you can check out: https://www.myexpattaxes.com/.
I believe the basic plan is 119 euros and includes them filing the FBAR and FATCA forms.
Glass_Confusion448@reddit
Then isn't it worth spending €300 to hire a professional?
elijha@reddit
If you were happy with TaxAct otherwise, the credit card issue should be pretty straightforward to solve