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At what point is it recommended to not use a software like freetaxusa? I've been using it for years.
by KyleJune 4y ago
At what point is it recommended to not use a software like freetaxusa? I've been using it for years.
- moneywoes 4y agoBeing a US citizen abroad. I’m in this situation and have had to pay huge sums to accountants If anyone has any recommendations I’m all ears
- notyourwork 4y agoWhy are you paying an accountant?
- refurb 4y agoIt's pretty complex actually. There are multiple ways to avoid double taxation, but each have their own nuances and limitations (that can extend for years). Ideally you'd complete the return for each scenario and compare across them.
- pclmulqdq 4y agoIt turns out that paying an accountant is a good defense against audits if your tax situation has any complexity at all
- notyourwork 4y agoSorry I assumed my question implied that was what was being asked. What is the complexity because I’ve done my own taxes for two decades, every year things are nuanced and slightly different. Never have I used an accountant.
- JumpCrisscross 4y ago> What is the complexity I send my bank statements, credit card bills and other documents to my accountant. He produces a return, together with optimisation advice for the coming year. It’s well worth the money. (I also have real estate, private equity, fund interests and emerging trust situations, and am multi-state.)
- deleted 4y ago[deleted]
- pclmulqdq 4y agoThe value is: 1. You don't have to figure out which forms to file by yourself. This quickly becomes non-trivial if you run a business, take a lot of deductions, or have weird forms of income. 2. The IRS sees that your return was prepared by a professional, so it is much less likely that they will try for an audit (since a professional will be representing you). If your tax liability is under $100k and your return is under ~20 pages, you mostly don't need one, but an accountant also doesn't charge much either (about the same price as TurboTax).
- pxx 4y agoIs it though. You're the one liable for issues on your tax return. You're the one who signed the return.
- xeromal 4y agoThere is actually a spot on tax forms that indicate the form is being filled and filed by a 3rd party.
- deleted 4y ago[deleted]
- pxx 4y agoSure, and penalties might not be assessed. But that doesn't stop you from being liable for the unpaid taxes.
- pclmulqdq 4y agoIf you file a complicated tax return and the "prepared by" line is not a CPA, you get targeted as someone who probably did something wrong. The IRS is more likely to go for you.
- CalRobert 4y agoI value my time. Learning the details of totalization agreements regarding ss contributions vs public retirement contributions for US vs. Ireland is not how I want to spend it.
- 1123581321 4y agoWhich forms have been driving the need for that? I'm assuming you've tried and found lacking the standard tax software recommendations among expats.
- patrakov 4y agoWhy is custom software necessary at all? In the Philippines, if you are registered with eFPS, and have an account in one of the accredited banks, nothing is needed except a web browser.
- 1123581321 4y agoI’m not sure what you mean by custom non-browser software. It wasn’t something I intended to refer to.
- patrakov 4y agoThen it is a misunderstanding on my side.
- EVa5I7bHFq9mnYK 4y agoFor me, it wasn't the forms, but live person's advice about murky sections of the tax code. I used taxesforexpats.com
- 1123581321 4y agoMakes sense. I used to prepare taxes so I appreciate the value of human insight there. I also have contempt for the industry because so few practitioners will teach easy cases to fish, or refrain from optimizing a return when the cost of prep exceeds the amount saved. (Not saying your situation is easy; it’s not.) Plus I do think it’s time the IRS stepped up automation for simple returns.
- woodson 4y agoI used this in the past for a relatively complex US/foreign situation: https://www.myexpattaxes.com/ https://www.myexpattaxes.com/ No affiliation or anything.
- netfortius 4y agoHave you not found what you need(ed) here (by filtering for expat specifics): https://apps.irs.gov/app/freeFile/browse-all-offers/ https://apps.irs.gov/app/freeFile/browse-all-offers/ ?
- jakobov 4y agoHow much are you paying? I have a good accountant that does my ex-pat taxes for $250
- netfortius 4y agoHave you tried filtering for what you may need here: https://apps.irs.gov/app/freeFile/browse-all-offers/ https://apps.irs.gov/app/freeFile/browse-all-offers/ ?
- ahoyhoy 4y agoI have used Taxes For Expats for years and have been satisfied with their software and level of service, however for my particular case they cost several hundred dollars per return.
- aetherane 4y agoBrightTax worked well for me for several years where i was abroad
- HaloZero 4y agoI volunteer with VITA and do taxes a lot but not a full time accountant. I've been doing my own taxes for years. I would say you need your own accountant and not software if: 1) You have complexities involving trusts/inheritance 2) Anything involving crypto (this is just a grey area to me and things change) 3) Anything that sounds more complex than anything above. If you're getting a bunch of 1099-DIVs/INT & W2/W9s it's not super complex.
- jcranmer 4y ago4) You run your own business. 5) Foreign income, other than simple investment income (e.g., own stocks in foreign companies).
- itake 4y ago6) your employer submits incorrect w2s
- dmoy 4y agoThat's pretty easy to handle with freetaxusa, at least it was the last two times I did it
- roflyear 4y agoYeah. When you start your own business, that should be when you talk to an accountant. Well, maybe as soon as you think you'll make enough money to pay taxes. It saves you a world of heartache.
- EVa5I7bHFq9mnYK 4y agoCrypto is simple. Anything mined/airdroped is ordinary income, anything bought and later sold is capital gains.
- daveguy 4y agoIf you held it for over year. Otherwise it's income of sale price - cost basis. Don't know about fees. I'm not an accountant, but I do know you have to hold an asset for at least 1 yr to count it as capital gains.