Best US Expats Tax Software for Expats in 2024
Exactly which forms each expat needs depends on their particular situation, including where they live, how long they’ll be living there, their income level, where their income is sourced, and their wider finances. The first form TurboTax has available is Form 2555, also known as Foreign Earned Income Exclusion (FEIE), which allows you to exclude a certain amount of foreign earned income from any US tax. For this tax year (2023) you can exclude up to $120,000. Consult an expert with specialization in taxation for expats for more information. However, many property-related charges might mitigate an expatriate’s tax liability. If you have to pay taxes to another country on that income, you may be able to use it to reduce the U.S. taxes you owe.
- You also enter deductions you may be entitled to, such as mortgage or student loan interest, business expenses or contributions to a health savings account.
- Will definitely be a returning customer as it was a delightful experience.
- Second time filing with MyExpatTaxes since I moved to Europe and am very grateful I found them.
- I hadn’t filed my taxes for the last 6 years… I used this website and their service is… awesome!
- Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page.
You can verify the latest price by clicking through to each provider’s site. With NerdWallet Taxes powered by Column Tax, registered NerdWallet members pay one fee, regardless of your tax situation. We believe everyone should be able to make financial decisions with confidence. I’m not someone that normally tells friends about businesses but I’ve recommended MyExpatTaxes to all my fellow expat friends. More expensive than TurboTax and its kin by a little, sure, but MyExpatTaxes has knowledge and service that pays off in spades.
Past-due tax returns
And that’s not a word I typically use when talking about US taxes. I hadn’t filed my taxes for the last 6 years… I used this website and their service is… awesome! I am getting a huge refund, and on top of that, they filed my forms quickly and in a proper manner. For the average U.S. tax filer, a number of tax software choices are currently available for annual filings. TurboTax, TaxSlayer, and TaxAct are some of the more popular off-the-shelf software options in this regard.
U.S. expats can file their taxes and FBARs late without being penalized
If they can’t easily speak to someone who is knowledgeable in both of these areas, the process will be difficult. Like TurboTax, TaxAct is “tax software USA” and does support forms 2555 and 1116. However, with this tax software, you as a US expat will need to know how to find these forms within their software. Finding the forms include shuffling around through the program best tax software for expats with sweats of frustration, which for many expats, they don’t have time for. In this recent age of fake news and too much information, it can be hard to sort through all the online best expat tax software tools options. If you are a U.S. resident living abroad, you are likely aware of the little-known fact that you must file and/or pay taxes annually to the IRS.
I was dreading filing taxes this year as it’s the first year my husband is an expat because we moved back to my home country last year, after I had spent 20 years in his country. The whole filing process was extremely simple, questions were answered very promptly and efficiently. We were delighted with the service and the price was affordable.
Foreign tax credit or foreign tax deduction
If you have a simple tax return, with one W-2 and a couple of deductions, you’ll likely be able to file your taxes for free. Many online tax software providers offer free filing for simple returns on their websites. Our analysis included a thorough review of each platform’s support options. We determined if the online tax software providers offered phone, live chat, email or help articles for users, and we evaluated each option. We contacted customer service departments by phone to assess their hold time and customer service quality. Self-employed freelance workers generally have more complicated income tax filings than employees.
Each category was weighted and scored feature by feature. The author, a certified public accountant (CPA) with more than 20 years of taxation experience, completed all tax software testing by opening accounts with each provider to perform hands-on evaluations. One of the biggest draws of TaxSlayer Self-Employed is that for just over $100, you can file both your federal taxes and a state tax return electronically. TurboTax can charge close to $200 to file your federal and state tax return when you’re self-employed, then charge even more if you want tax advice from an expert. If you work as an employee for the U.S. government, you typically aren’t eligible to claim the Foreign Earned Income Exclusion. However, if you work as an employee of a private company and perform work under contract for the U.S. government, you may still be eligible to claim this exclusion on your tax return.
And if you want to file your own taxes, you can still feel confident you’ll do them right with TurboTax as we guide you step by step. No matter which way you file, we guarantee 100% accuracy and your maximum refund. When you live abroad as a U.S. citizen or resident, you still need to consider the tax consequences back home. Even if you are a U.S. citizen living and working outside of the United States for one or more years, you still likely need to file a U.S. tax return.
The FBAR is electronically submitted via the BSA e-filing system. Even if the account(s) exceeded $10,000 for just one day (or one minute! ), you must file an FBAR. The FBAR is filed independently of your U.S. expatriate tax return.
We found this very useful for someone who feels mostly confident filing their taxes but wants some reassurance they’re doing it right. We called TaxSlayer’s support line, and the hold time was less than 2 minutes. We spoke with Mardae, a customer https://turbo-tax.org/ service representative who was helpful and professional. We asked him how to report business income from a 1099-NEC. He answered our questions within minutes and provided step-by-step guidance to enter the form into the program.
Understanding US Taxes for Expats Living in Portugal
You must file a U.S. tax return even if you have no tax liability. Investment reporting and rental income (Schedules D and E, and K-1s), plus business income, expenses on a Schedule C, home office deductions and features for freelancers. While we are happy to help calculate total income, major expenses, and foreign taxes paid, you will be responsible for calculating any misc. Work with our expat tax experts and get the help you need navigating your unique situation. Bank products and services are offered by Pathward, N.A.
The rules around interest on owed taxes or penalties for filing late or paying late will vary, depending on your state filing requirements. 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. These gross income thresholds typically amount to the Standard Deduction amount for your filing status and age. These amounts are set each year by the federal government and are designed to index with inflation.
How to file taxes while living abroad in 2024 and which online software to use will finally be answered. We’ll walk you through the top expat tax software solutions – plus our own – to see who and what really stacks up. IRS developed the streamlining procedure in 2014 to help taxpayers catch up on taxes and expanded their services to help Americans overseas file overdue US tax returns. It actually explains what you are doing in a simple way. Easily the best online expat tax service I have used so far!
Using form 1040-X, you must file an amended return for the tax year in question if you discover you did not report all of your income or if you did not claim all of your allowable deductions. FATCA is similar to FBAR because it aims to prohibit U.S. taxpayers from hiding money and assets in offshore accounts. Form 8938 must be filed if the amount of certain financial assets exceeds the filing threshold (which varies by filing status and residency).
However, if this happens in the middle of the year then you might need to file as a part-year resident. That said, while you may need to file, you may not need to pay any U.S. taxes. The IRS uses a series of tax items to lower or fully reduce your foreign income tax obligation. If you live abroad as an American expat and have taxable income, you still need to remain compliant with your U.S. expat taxes.
