Tax Season

I am Canadian and use uFile , if you don't have any income in the philipines why can't you use turbo tax ?

Also if you do have income in the philipines you just declare your foreign income, this really has nothing to do with being an expat. I take it you are still considered a US citizen.

Living in the Philippines I managed to use Taxact for the first 4 years. Using a Philippine address was possible but not straight forward. I had tax issues due to investments so a software tax program was worthwhile to purchase.

Eventually, TaxAct become more online and not really a separate software package anymore that you downloaded and I did not and do not like it. Then, we sold land here with US capital gains tax liabilities and TacAct and TurboTax did not seem to be able to handle well due to lack of IRS forms received (it was a Philippine sale). So, I was tempted to give up and waste money on a tax prep service, however I gave it a shot to understand how to file on my own. After much reading I figured it out.

I used IRS ID.me so I had access to online IRS 1040 filing and all other forms needed for the foreign cap gains calculation and I did it myself, manually. Once you understand what they need it is easy and you must create your own IRS tax forms as instructed because no bank or attorney here created them for you. But it is OK, it makes sense once you do it with little concern that you made mistakes doing it yourself. You figure out the calculation in 2 independent ways and if the amounts are the same you are OK.

After that filing,  I just used Id.me every year and navigate to IRS online filing, essentially filling out online 1040 pdfs which even does a minor amount of calculations for you such as figuring out taxable social security income based on your total Income.

I avoided tax preparation services like Greenback due to what I perceived would be prohibitive costs, especially for the year where we incurred cap gains from land sales here, well beyond $1k when the most we ever paid in the US for a very complex return was about $250.

Now my returns are very easy involving SSA and pensions only so I use the free IRS online filing filling out the interactive PDF 1040s.

I read an informed article a couple of years back about US citizen tax returns. Apparently the tax code runs to well over a million words.

The complexity of doing a tax return is such that even your average earning family need assistance to file. A whole cottage industry has sprung up with 'Mom & Pop' businesses who will do this for you.

The penalties for errors can be quite severe.

Presumably the above service can still be availed of in the Philippines with the piece of mind (and bureaucracy free hassle) that it brings.

I mentioned this to my British accountant who was unaware of the magnitude of filing Stateside. He does have a dry sense of humour though. " With that complexity I would have to double my fees" lol.

    I read an informed article a couple of years back about US citizen tax returns. Apparently the tax code runs to well over a million words. The complexity of doing a tax return is such that even your average earning family need assistance to file. A whole cottage industry has sprung up with 'Mom & Pop' businesses who will do this for you.The penalties for errors can be quite severe. Presumably the above service can still be availed of in the Philippines with the piece of mind (and bureaucracy free hassle) that it brings. I mentioned this to my British accountant who was unaware of the magnitude of filing Stateside. He does have a dry sense of humour though. " With that complexity I would have to double my fees" lol.

What you say is pretty scarey and that fear makes the expat tax services happy because it helps drive business

As an engineer, I understand math and I understand their logic. Actually their calculations do make sense and if you don't see that, you are doing something wrong...see a pro. But of all the people that I know who did their own taxes, 95%, none were penalized and none ended up in jail. And, a large percentage of the 5% used pro's to claim and take responsibility for deductions for many things they wouldn't have the guts to declare on their own lol.

Professional tax services are happy if you fear the IRS as you suggest. But you should only fear them if you are trying to cheat or if your tax year involved complex investments, capital gains and the like that you have no idea how to handle. That may cause honest mistakes so avoid that. But IRS are also experienced at spotting fraud and then it becomes criminal. If you might be that way, step back and hire a cpa or enlisted agent and stay out of jail.

Many of us run into situations where we had company stocks whose dividends were re-invested into new stocks, year after year, for many years, where tax laws changed in between, things like that which become very complex and for the year you cash that in you get an enlisted agent to be responsible for your return and pay him a REASONABLE sum for it. I would not use some ripoff expat tax service for this, just contact a normal service in the USA like HR Block and they will do expat taxes. In my case I evaluate how complex the calculations are and, in the rare cases they are over my head, I see a pro. I do not default to using a tax service every year no matter how simple.

Yes the tax man always has his hand out but the same government are tight as a fishes ass when it comes to pensions or giving to the needy.

I wrapped up all my taxes 5 years ago in Oz with a "no further returns" by my accountant. I can earn up to 20K a year not taxable which covers my income from banks and other small incomes and now I draw a pension from my superannuation they don't get their 15% of the income derived from that fund, this month alone was an extra AU3.5K in my pocket (no tax on dividends)

Took myself off the electoral roll 5 years ago knowing they are all tarred with the same brush. notified all for digital mail only and have not looked back.

Stopped paying ASIC for my company as it was going to cost me around 1.5K to deregister, my accountant said ignore as after 2/3 years of fines they will wipe you and deregister with no fees,,,,, they try it on for the unwary.

Back to the OP I used my Accountant in Oz 12 years ago and then 5 years ago and all digital from the Philippines, the 7 interim years I was back in Oz and accomplished there.

Hope you fid your answers.

Cheer, Steve.

The last year I was required to file taxes, I used the previous four years professional done as my blue print. I received about $1500 refund back and then the dreaded later from the IRS.

It seems I made an error the dreaded letter had a check attached for a little over $400.

Well Nothing now for 5 years and I hope never Bob, they seem to try it on with the small fish like me and leave the big boys alone,,,,,, too hard.

Time will tell and I am about to start destroying files over 5 years old, save space.

Cheers, Steve.

Hmm, I used Turbo tax from here the first couple of years, no problem, then I switched to

OLT (On line Tax) whom I'm with now because its free for me. I Use philippines as my address with IRS

    Hmm, I used Turbo tax from here the first couple of years, no problem, then I switched to
OLT (On line Tax) whom I'm with now because its free for me. I Use philippines as my address with IRS
   

    -@vehicross100

Excellent resonse to the exact topic of the OP.

I used to use TaxAct online with no problems filing as long as I had a certain number, otherwise I had to print out and  file paper returns to Austin IRS by DHL Let me explain. 

My case is kind of special; several years ago there was a fraud attempt to get my refund. IRS was suspicious so they contacted me by mail. Given that there was fraud, IRS required me to use an identity pin, assigned each year, forever. They send you the identity pin in January which is fine if you live in the states; however, in the Philippines you are dealing with PhilPost and several months delay and I never received the pin on time to file electronically; I had to use the TaxAct software to print out a softcopy and mail that to Austin via DHL.

Then, IRS came up with IRS ID.me; fantastic! It was very difficult to get a sign on; I even needed an online zoom interview from the Phils with an id.me human but it worked. Now I have complete online access to all of my IRS records including the letter with each year's new identity pin SO I CAN NOW FILE ELECTRONICALLY ONLINE FROM HERE with Mt Philippine address using TacAct, TurboTax or IRS online forms.

Sorry, this is not the concise short response that the OP expects BUT it does reflect the BS that some of us have to go thru to comply. If for you it is much simpler, be thankful. All you need is something out of your control to F up your life like an attempted ID theft for your tax refund and that  will permanently complicate your US tax filings.

danfinn said and it's worth repeating: however, in the Philippines you are dealing with PhilPost and several months delay and I never received the pin on time to file electronically;

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Peoples don't learn the hard way, PhilPost is the Giant Sloth of mail delivery.

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It was a good thing that I use a mail forwarder, the error in my tax return resulted in my refund being sent with a paper check.

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Possibly if it would have been sent via PhilPost I would have never received it and not even known about it either.

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PhilPost is like having  a post under review on this forum.

@Enzyte Bob

Giant Sloth is an interesting way to look at many things as they are extinct, trouble is Phil Post still try to operate, my definition would be as useless as tits on a bull.

We talk about tax and how to accomplish from afar, I never had any issues dealing with my accountant in Oz nor the Australian tax office from the Philippines, all done on the laptop including digital signatures. My accountant submits and I pay or get a refund (rare) all digitally, not received nor written a cheque to the tax office for 20 years, it's all electronic. My account to theirs or their account to mine. Ben, a permanent resident in Oz the same, all digital.

I will add that I mentioned getting rid of old tax files, going through them I found my 3 cheque books, family trust, the last entry was 12 years, the company 10 years and personal 14 years, they will be incinerated with the files.

To the OP perhaps change your provider that can accomplish your needs from the Philippines, as another member mentioned Turbo tax.

Good luck. 

Cheers, Steve.

I read from Turbo Tax Help site that Turbo Tax does not support IRS Form 1040-NR (U.S. Nonresident) they have partnered with Sprintax to offer both federal and state preparation for nonresident. I plan on using the Philippine address on my tax forms since we will not claim residency  in the state I'm currently living in. Just trying to make sure we have everything in order before we move to the Philippines. Thanks again for your input.

    I read from Turbo Tax Help site that Turbo Tax does not support IRS Form 1040-NR (U.S. Nonresident) they have partnered with Sprintax to offer both federal and state preparation for nonresident. I plan on using the Philippine address on my tax forms since we will not claim residency  in the state I'm currently living in. Just trying to make sure we have everything in order before we move to the Philippines. Thanks again for your input.

• To ensure I have this correctly, 1040-NR, which is for a very limited set of earners in the US i.e. Non-resident aliens (no green card) who legally earn income in the US, is not supported by TurboTax. Based upon your interest in 1040-NR, you must be a foreign couple living in the US without a green card who earned income. You will use the Philippine address on your USA tax form; why? which one, 1040-NR? Filed manually without TurboTax? You really earn taxable income as Non-resident foreigners in the US? How? It cannot be by working or investments, possibly inheritance or casino winnings? Just curious as I never encountered this kind of filing situation before.

   
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PhilPost is like having  a post under review on this forum.
   

    -@Enzyte Bob

7 days and counting for Spanish American War (diary)

@Dave & Ruby

Understand, you don't/won't have an address in the states? No current accountant there? No bank accounts there?

Perhaps Australia is different as I'm sure they are aware I am O/S now for 5 years but no dramas, My sister is my registered address and well as holding power of attorney, She gets 2/3 letters a year and generally crap.

I spent a lot of time notifying government instrumentalities, banks, electoral roll (Non resident take me off the roll) Superannuation and the list goes on, please all correspondence digital, no snail mail and has worked perfectly. No mail comes through the postal system here as it's useless.

Why not engage an accountant that is prepared to work with you digitally, sure a meeting initially to clarify before you move here.

Cheers, Steve.

@mugteck

Maybe off topic and perhaps best to let it go? Contact admin if there is an issue but it seems minute man or what ever the name has disappeared as some do.

A real interest then start a new thread.

Cheers, Steve.

          Wanted to read more of the diary

   

A real interest then start a new thread.

Cheers, Steve.

I do not have the diary.
   

    -@bigpearl

@bigpearl apprised:Maybe off topic and perhaps best to let it go? Contact admin if there is an issue but it seems minute man or what ever the name has disappeared as some do.

A real interest then start a new thread
   

One could tell from the start that minuteman had trolling tendencies but for a hit and run, that was about the longest "hit" before he attempted to sow discord by antagonizing people in the group and reporting them to admin and then running.

@danfinn

And was it all hypothetical? Made up? Trolling? Or simply out for a spat?

We have seen the same likes over the years.

@mugteck

After reading minuteman's submission on the dairy's? Perhaps reread. A supposed diary never verified that you or I could compose with a little study of 19th century literature.

Simply look at his/her first post and the turn around to create another debate/phishing?

Cynical I am, realist also and hypothetical submissions need to be weighed up correctly.

The Spanish American upheaval as well the Spanish Philippines 350 years of occupation or the 45 years for the Filipinos to finally shake off the US and gain their own democracy/republic are all available and well documented online for all to consume, digest or spit out.

OMO.

Cheers, Steve. 

Minnman claimed he was from Minnesota.   You have him confused with Lexington and Concord.

I am not confused mugteck as my memory is pretty good, I know who minute man is but I have to admit no idea Lexington nor Concord, perhaps the same flight?

Talk about off tax season, sorry all.

Cheers, Steve.

          The shot heard round the world was fired, unknown by whom, as the American minutemen stood up to the British army at Lexington and Concord, the start of the revolutionary war, 1775 to 1783.

@mugteck

A great topic for a new post I will read with interest.

Cheers, Steve.

    @mugteck
A great topic for a new post I will read with interest.

Cheers, Steve.
   

    -@bigpearl

Has nothing to do with the Philippines.

mugteck said. . . . Wanted to read more of the diary

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What's missing from the diary is that Spanish-American war started in the Havana Cuba Harbor. As a result was the acquisition of Puerto Rico, Guam & Philippines.

Filipinos just can't get a break.