US Tax Returns
 

Hello

UK expat here, been working in the US for two years now. In my first year, my company arranged for PwC to support my US/UK tax returns and this year I am on my own!

I've heard of options such as TurboTax to help with the filing, does anyone have experience using them as an expat? Or, have any other recommendations?

I am paid here in the US and US tax is taken from my salary - if that makes any difference to your recommendations.

Thanks in advance!

Re: US Tax Returns
 

Use Turbotax or similar.

If you've been in the US the entire year of 2019, with no or minimal investments outside the U.S. it should be a piece of cake. You'll probably end up doing a better (more thorough) job of it doing it yourself also.

Re: US Tax Returns
 

Turbo Tax - been using it for years and it works fine.

Take the option where is leads you through the process practically line by line.

Unless you have mightily complicated taxes you'll be OK

Re: US Tax Returns
 

I use TurboTax. I've used it each year I've been here. Probably takes a couple hours once I have all the documents in.

Re: US Tax Returns
 

Great, thanks for the quick replies!

I was here for all of 2019 and I do have a flat I'm renting in the UK - I presume that won't complicate things too much :)

​​​​​I'll start looking into Turbo Tax.

Thanks again!
​​

Re: US Tax Returns
 

I use TurboTax too.

CreditKarma Tax is free and apparently works quite well now they've ironed the bugs out. Unfortunately they don't yet support certain circumstances - I always have to file both a NJ and NY state return and it doesn't support filing more than one state so I can't use it but it's worth a look if your situation is simpler.

Re: US Tax Returns
 

I've been a Turbotax user for the last 5 years, never had a problem. Although the cost to file can be a little painful if you end up with some complicating factors and you go up the chain of the 'versions' that they offer in order to be able to do what you need to do..

Last year my wife had a 1099-R and it cost us just over $100 to file Federal and State if I remember correctly.

Re: US Tax Returns
 

I doubt that TurboTax will support Form 8858 to report so-called "Foreign Branch" operations in relation to the rental property. You may decide you want professional advice.

Re: US Tax Returns
 

We pay around $700 a year for a local CPA to file ours. I have some complicated interests in Europe and Asia but they also have an international affairs specialist who takes care of it all. Pretty good bargain I think.

H

Re: US Tax Returns
 

Can anybody explain what a 1042-S form is? I have received two, one for a checking account and one for a savings account (but not one for my other, joint, savings account).

After moving in February last year this is my first experience of filing taxes. My wife is a USC and has never seen one before. They only list a small (both under $5) level of gross income with the savings code of 'Deposit Interest' - though I have received much more interest in the savings account as listed on my 1099 for that account, and not been able to decipher what the 1042-S form is actually for and how it is to be used. Is anybody able to roughly explain in Layman's terms before I sit down and try to complete our tax returns in the next few days.

Thank you in advance

Re: US Tax Returns
 

Google tells me that a 1042-S form is for a foreign person's tax withholding.

This means 1. They think you're not a US taxpayer, and 2. They have therefore withheld the percentage required by law from your account interest. When you fill in your tax return you should include this interest as income and include the withholding as tax already paid.

Hopefully that is clear, but I'm not sure I'd understand if this was the first time someone explained to to me.

Re: US Tax Returns
 

Sounds like you need to tell the bank you're a tax resident.

Re: US Tax Returns
 

Ben, I know folks that have a rental property in the UK and have been here several years. Like me, they use TurboTax. The best thing about it is the fact it has your prior year details when you are into your second+ year using it, so it prompts for the things that are likely ongoing.

For rental property I am sure it offers input of income and expenses, plus capital purchases like replacement boiler/cooker etc (I think)

One thing to watch out for might be paying off any of an interest only mortgage early. I’m not familiar with the details, but I think I read that it can complicate matters. Others might chime in on it.

Re: US Tax Returns
 

I don't know if TurboTax calculates foreign currency gains on UK mortgages; I doubt it provides Form 8858.

Re: US Tax Returns
 

good thread.
similar situation, relocated in October 2018, used Deloitte for 2018, now on my own.
Just gone through everything using Turbo Tax, seems quite straightforward, but I haven't got an ITIN number for my wife and 3 kids. So i believe i need to file for an extension, send the ITIN applications forms off to the IRS and meet up in person.
I might pay the extra money through Turbotax for a CPA to check over everything.

Re: US Tax Returns
 

That is what we did, although that was 5 years ago. There may be a trip to the nearest IRS office that can authorise you - ours was 3 hrs away

Re: US Tax Returns
 

As far as the ITIN applications are concerned a CAA would be wise.

Re: US Tax Returns
 

You have until April 15 to file your return. Why not apply for the numbers and see if you can avoid the extension.

Re: US Tax Returns
 

yes will try to, i believe it might take 8-10weeks in processing.
and they were accepting appointments end of Feb.

Re: US Tax Returns
 

One question when applying for the ITIN.
Just noticed one of my sons UK Passports has expired. Didnt even Realize.
His US Visa though is valid.
Would this be a problem when applying for the ITIN?

Re: US Tax Returns
 

Well more importantly you might want to check his I-94 because usually CBP only admit people until their passport expiration date - he could be out of status :blink:

Re: US Tax Returns
 

I-94 expires next year, we had a 3year work visa L-1a and my wife/kids on the L2.
can extend upto 7years in total.

Re: US Tax Returns
 

Each person is issued their own I-94 - have you actually checked your son's at https://i94.cbp.dhs.gov/ ?

Re: US Tax Returns
 

Yes for sure. as i mentioned, all our I-94 are the same expiry as mine.
so our status here is not the issue.
It was whether when applying for a New ITIN number, would his expired passport become an issue in terms of getting him classed as a dependent.
thanks

Re: US Tax Returns
 

When I did this a few years a go you needed a reason to get the ITIN, which was to file taxes. I prepared our returns on TurboTax, printed it and took it with the ITIN applications to the IRS office. They then completed the ITIN verification process, numbers were attached to the file which then processed the tax return.
It takes longer to get any refund, but no need for the extension as the official date of filing was when we visited the office.

Re: US Tax Returns
 

hey thanks for that. Yes thats what i'm planning to do. just about finished everything on Turbotax. will finalise the ITIN forms today and print it all off. will most likely send everything in the Post, because our meeting with the IRS is not until 3rd March. we would all have to go to that appointment, which is a little tricky for us as a family. thanks again

Re: US Tax Returns
 

benwuk Interested in your experience of PWC and your first year tax return experiences. I have moved to California 3 weeks ago on an 3yr L1 Visa and my company are also engaging PWC to handle the first yr return, using a combination of US and UK tax specialists knowledge.

Just keen to ensure I start of on the right footing in what sounds an evermore complex area.

Thanks

Re: US Tax Returns
 

The work will mainly be carried out in Bangalore. The tasks offered will be limited to those agreed in PwCs service level agreement with your employer. This may include taking positions that lower your employer's risk rather than those to your specific advantage.