My Taxes For Expats Review For Americans Living Abroad: Are They Legit?

by smb@builders, December 3, 2020

It also provides tips and templates in case you want to file an objection. One drawback of Taxfix is that it does not support complicated tax cases such as self-employed, freelancers, financial support of adult relatives, income from private pensions and real estate, etc. You must file the FBAR if your combined account values surpass $10,000 at any time during the year, regardless of whether those accounts produce income. The US Embassy in Germany has a website page with information on the IRS at this link.

H&R Block offers a DIY filing solution built specifically for expats to avoid double taxation and ensure an accurate tax return that meets filing requirements. Given the IRS’s backlog of paper tax returns, filing your taxes online is the best way to ensure your forms get processed on time. If you’re using tax preparation software, filing your taxes online is as simple as following the software’s instructions. You have 4 important deadlines to remember if you are filing U.S. expat tax return as an American or dual citizen living overseas. As a U.S. person in the U.S. who files their tax returns on a calendar year basis, the due date is April 15th of the following year (April 18th for 2023). But if you file on a fiscal year basis, meaning a year ending on the last day of any month, except for December, then the due date is 3 months and 15 days after the close of your fiscal year.

Best for Simple Tax Returns:

Additionally, you may need more time to determine if your IRA contributions were permitted. As a U.S. citizen living abroad, you need to know exactly how much you can contribute and when. If you weren’t clear on that in the last year, the extension will give you additional time to correct any excess contributions as needed. To claim the Child Tax Credit benefits or the third stimulus payment for a new family member, you’ll need a Social Security number for the dependent. Sometimes processing can take a while, especially now, thanks to delays caused by the pandemic.

They have worked with ex-pats in 212 countries and have served over 8,400 ex-pats in filing their tax returns. They offer straightforward pricing for basic returns and CPAs and EAs who work remotely throughout the world. With many Americans residing abroad, a niche market for Expatriate Tax Return preparation has developed.

File with a tax advisor

In the IRS response, they said that Free File partners require a US phone number to establish an account, but the IRS can’t change this requirement. Essentially, the IRS can’t dictate to Free File providers how an online account to submit an electronic return is set up. I personally find this frustrating, because a consequence of this action is that Americans abroad aren’t provided equivalent filing tools offered to stateside Americans.

Best Tax Software For Expatriates In 2021

Sorted is a great online accounting tool for freelancers and self-employed professionals. Sorted is directly connected to the tax office via ELSTER. You can submit all your tax reports to the tax office through Sorted. It is an official tool from the government to submit your tax return electronically. The Taxman software provides a very comprehensive explanation of the tax terms.


Likewise, most use some form of secure electronic communication method or portal. These have always been two of the essential elements when you begin considering doing tax business online. Nonetheless, there are some tax software options for expats. You can file your taxes directly with the IRS by using e-File, or you can use the IRS Free File program to find a free tax filing option. Keep an eye on any extra fees for state tax returns as well.

How do I file taxes if I live outside the US?

A common question you may have is “Does a US citizen living abroad file a 1040 or 1040NR?” The answer is, it depends. If you are a nonresident alien, you will file the 1040 NR. Foreign Tax Credit Form 1116 – The is the form you use to claim the foreign tax credit.

Any commune that has this designation can – if the local authority decides to – impose extra property taxes, namely a surcharge on second homes and an ’empty homes tax’. You can do your own taxes as a US citizen abroad, but there are some tools that can assist you. For example, if you have $5,000 in a savings account and $4,750 in an investment account and the investment account jumps to $5,025 for even a single day, you must report those balances. “You have people doing what seems to them like very normal things, like saving for retirement, or buying a home,” said David McKeegan, co-founder of Greenback Expat Tax Services. “But when you do it overseas, sometimes you can get yourself into a whole lot of trouble.” I had all of my necessary financial information in an electronic folder in the cloud before starting and this helped immensely.

And perhaps the biggest gripe most users have is the lack of payroll support. With Sage this is an optional extra for all packages that is easy to implement for a small additional monthly fee. Start priced at £12/month gives you all the basics you need as an individual to deal with your taxes. It lets you create and send invoices, track what you’re owed, calculate and submit VAT and enables you to check that your accounting records tally up with your bank account.

The company offers DIY preparation and filing, of course. But if you get partway through and realize you’re not sure of some tax issues, you can have an H&R Block tax professional review your return, complete it, share the results with you, and sign and e-file it. You can even just upload your tax documents and the pro will take over.

Best for Free Federal Filing

TaxAct allows retirement income, unemployment, and support for the Earned Income Tax Credit (EITC), in addition to the W-2 and the CTC, but you must pay $36.99 per state filed. TurboTax lets you report W-2 income, the EITC, the CTC, student loan interest, and limited interest and dividend income. Using TaxSlayer, you can enter your education expenses, in addition to the W-2 and other topics.

Whenever you’re going to be sending sensitive information over a network you don’t control, you should be concerned. Since taxes are nothing but sensitive data, you ought to be doubly concerned if you’re filing from a coffee shop, say, or the airport. Sometimes a friendly and understandable user experience isn’t enough, so tax websites offer online assistance. Some, including H&R Block, provide context-sensitive explanations in panes attached to the main working area. The Earned Income Tax Credit (EITC) provides a tax break to low- and moderate-income families and workers.

What is the tax return process in Germany?

To get form SS-5, or to find out if you are eligible for a social security card, contact a Social Security office or visit Social Security International Operations. If you, or your spouse, are not eligible for a SSN, you can obtain an ITIN by filing form W-7 along with appropriate documentation. Taxpayers with an AGI (Adjusted Gross Income) within a specified threshold can electronically file their tax return for free using Free File.

Best Tax Software For Expatriates In 2021

If you take advantage of the automatic 2-month extension, you should still try to pay any tax that is due by the original due date to avoid accruing interest on the outstanding balance. TAP is comprised of approximately 75 members who volunteer to serve a three-year term, and represent all 50 states, District of Columbia, Puerto Rico and a member to represent U.S. Eligibility for some tax credits depends on your tax bracket, so if you’re not sure where you fall this year, check out the 2023 tax brackets. Before you make a choice, it’s important to understand what tax software is, how it works and what you can expect. Apart from its in-person options at your local mall during tax season, its customer support is comprehensive and even includes IRS audit assistance.

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