Tax Expert?

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antitravolta
Posts: 88
Joined: Sun Jul 22, 2012 10:35 am
Location: United States

Tax Expert?

Post by antitravolta »

I am in the middle of my first year overseas and not sure how to handle my taxes back home. Is that something I can easily do on my own (and if so, how?) or if that's not the case, does anybody have a tax expert they recommend in the states who is an expert in such matters. Thanks in advance for your help.
wrldtrvlr123
Posts: 1173
Joined: Sat Feb 06, 2010 10:59 am
Location: Japan

Re: Tax Expert?

Post by wrldtrvlr123 »

[quote="antitravolta"]I am in the middle of my first year overseas and not sure how to handle my taxes back home. Is that something I can easily do on my own (and if so, how?) or if that's not the case, does anybody have a tax expert they recommend in the states who is an expert in such matters. Thanks in advance for your help.[/quote]
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If you are from the US then using Turbotax is really very easy and reasonable. You will need to determine your eligibility for the foreign income exclusion of $80K+ (dates out of country, etc) but the software on the website asks you questions and guides you through the steps, completing the necessary forms and then e-filing everything.

We've used it for years and never had a problem.
sid
Posts: 1392
Joined: Sat Dec 02, 2006 11:44 am

Re: Tax Expert?

Post by sid »

I recommend finding a specialist who works in expat tax.
I did my own taxes for years, then worked with TurboTax for years, all overseas. I felt it was all pretty straightforward, if time consuming, and that I was pretty good at it. But as things got more complicated with my investments and properties, I got tired of the ridiculous amount of time it took, so I hired a professional. He looked over my past filings, fixed them up, re-filed, and I got several checks, both state and federal, covering several past years, amounting to several thousand dollars. I had to pay him several hundred dollars, but all in all it was quite a win.
There are different options out there. Some tax guys specialize in expat teachers, and I'd really recommend them. They're used to our ways...
antitravolta
Posts: 88
Joined: Sun Jul 22, 2012 10:35 am
Location: United States

Re: Tax Expert?

Post by antitravolta »

Thanks guys. I've always done mine myself, but pretty sure I ended up giving the government money I shouldn't have. I'll probably hire somebody this year. Does anybody have a U.S. based expert they recommend?
vettievette
Posts: 101
Joined: Fri Oct 14, 2011 1:31 am

Re: Tax Expert?

Post by vettievette »

antitravolta wrote:
> I am in the middle of my first year overseas and not sure how to handle my taxes
> back home. Is that something I can easily do on my own (and if so, how?) or if
> that's not the case, does anybody have a tax expert they recommend in the states
> who is an expert in such matters. Thanks in advance for your help.

I use http://globaltaxonline.net/. They're very thorough and respond quickly. They're services are geared for ex-pats. They also handle any IRS-related inquiries I have during the offseason. I know my taxes aren't too complicated - no properties, etc. yet but the $250 I pay them each year is well-spent since I don't have to worry about messing up the paperwork, which is a bit of a hassle to correct in my current part of the world. They also saved me some $ my first year dealing w/ taxes in my US job - part of that coming from freelance counseling work (1099).
emilysue1212
Posts: 21
Joined: Thu Jan 26, 2012 3:55 pm
Location: Colorado

Re: Tax Expert?

Post by emilysue1212 »

I just looked into this extensively last year because I'm a chicken and couldn't stand to do anything shady or anything in a gray area when it comes to taxes. ;)

For one, I found this service--they seemed to know what they're doing. Didn't use them, but seems legit:

http://www.greenbacktaxservices.com/

In the end, I ended up going with an accountant friend of my parents. Not an expert by any means, but he was able to file for what I needed. Basically, what I *think* you have to do is this:

1. File for an extension for your 2013 taxes. If you were in the US last year (I assume that's where you were), then you haven't been out of the country long enough to qualify for tax-free this year. In order to meet the requirements to not pay tax on your foreign income this year, you have to either meet the bona ride residence test (which, if you have a residency permit or something of that nature and have no intentions of returning to the US to work in the near future, you will probably qualify for, but only after a certain period of time) or the physical presence test (something like having to be out of the US for 330 consecutive days). Again, if you're like me and arrived at your school in August, you don't meet either for 2013. But hallelujah legal loophole--you file form 2350 and put the date when you expect to meet one of the two tests above and if everything is filled out correctly, the IRS will grant you an extension to file. Mine was until January 2 of this year (2014) so I literally just filed my 2012 taxes. After the first year, the filing is no big deal because you definitely meet one or the other tests so no taxes on your foreign income if it's below $90,000 or something like that.

There are other options, of course. I tried to use TurboTax first, but when it asks you about foreign income, it asks you stuff like "do you pay taxes currently in the country you live in?" We don't, because we live in a country with no income tax. So, you either have to fudge your way through or TurboTax figures you don't qualify and taxes your foreign income. At least it did when I tried it--I went from supposedly getting a couple grand back in a refund to having to pay $1200 or something. That's when I decided to talk to an accountant and see what I could figure out.

You could always, of course, just declare the income you made in the US before you moved abroad. Some people I know have done that. I'm guessing the chance for getting audited is quite low, but I don't know. Seems risky. But I'm a rule-follower. :)

Anyway, that was what I did! And the IRS approved my extension for 2350. Fingers crossed, but I should be getting my refund directly deposited in my account in a few weeks.
Dawson
Posts: 75
Joined: Thu Apr 11, 2013 5:26 am
Location: Bahrain

Re: Tax Expert?

Post by Dawson »

I always used a tax program when I was in the US, but now that I'm overseas I find it very easy to do my own taxes. You just follow the steps on the tax form. As a teacher in a foreign country you will be able to claim the foreign tax income which is really high. I can't remember off-hand what it is, but almost certainly you would be under that (unless you are some lucky teacher making 100K per year). That means all your income is tax free. So basically you will end up at 0 for your tax return and you won't owe any money, but you won't get a refund either. This is based on my experience as a single male, so if you have a spouse and dependents it could be slightly different, but it's still easy to do yourself. Also, if you own property back in the States you could qualify for a state refund based on what you pay for property taxes. I wouldn't waste my time with any tax programs when you can do this all yourself. Good luck, and like I said you definitely shouldn't end up owing anything and if you have dependents you could get a pretty nice refund.
Green
Posts: 7
Joined: Wed Apr 14, 2010 7:59 am

Re: Tax Expert?

Post by Green »

My first year out I just filed normally but added the foreign tax exclusion since the taxes in the county I worked in were higher than in the US. You can also get money back from your move. Don't forget to do your state taxes. After that I was Bona Fide, now I file the foreign earned income exclusion which is S97500 for 2013. If you're lucky to be over that number, then tack on the housing deduction based on where you live. The form 2555 is pretty easy. I do all my US investments as usual and I no longer file state. Good luck.

PS after doing taxes in 3 different countries since then, all I can say about the IRS is "Wow, wtf"
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