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US Tax Returns

US Tax Returns

Old Jan 13th 2020, 12:29 am
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Default 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!
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Old Jan 13th 2020, 1:14 am
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Default 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.
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Old Jan 13th 2020, 1:30 am
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Default 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
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Old Jan 13th 2020, 1:38 am
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Default 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.
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Old Jan 13th 2020, 3:07 am
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Default 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!
​​
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Old Jan 13th 2020, 12:45 pm
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Default 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.
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Old Jan 13th 2020, 2:58 pm
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Default 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.
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Old Jan 13th 2020, 4:37 pm
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Default 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.
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Old Jan 13th 2020, 7:20 pm
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Default 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.

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Old Jan 24th 2020, 11:18 pm
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Default 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
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Old Jan 25th 2020, 4:03 am
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Default 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.
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Old Jan 25th 2020, 12:19 pm
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Sounds like you need to tell the bank you're a tax resident.
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Old Jan 25th 2020, 5:59 pm
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Default Re: US Tax Returns

Originally Posted by benwuk View Post
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!
​​

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.
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Old Jan 26th 2020, 4:43 pm
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Default Re: US Tax Returns

Originally Posted by Hanco View Post
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.
I don't know if TurboTax calculates foreign currency gains on UK mortgages; I doubt it provides Form 8858.
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Old Jan 31st 2020, 3:46 pm
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Default 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.
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