How to Choose the Best US Tax Software for Expats
Expat Tax Blog | Tax Tips for US Americans Abroad
All blogs are verified by IRS Enrolled Agents and CPAs
How do you choose the best US tax software for expats? As an American taxpayer and filer living abroad, much needs to be considered – like essential software features that accommodate you, your tax case, and budget.
In this post, we’re going to break down everything you need to know to choose the right expat tax software for you and your tax situation.
Software Includes All Tax Forms an Expat Needs
It’s really important that you, an American abroad, find an expat tax software updated with the latest technology and includes all the tax forms you need to become tax compliant with the IRS.
Tax software like TurboTax, for example, is only designed for American taxpayers living in the United States. Unfortunately, it does not include an all-in-one solution. For example, their Foreign Earned Income Exclusion form is available; however, to claim it, you need to do a lot of preparation work, like calculating the duration of your qualifying time abroad.
Additionally, American expats need Form 8833, Treaty Based Disclosures, but it’s not included in the TurboTax software. Instead, this company will tell you to download and print the form to fill out and mail with your tax return.
Software Must Include the FBAR
Most importantly, when choosing the best US tax software for expats- you need to make sure it includes the Foreign Bank Account Report or FBAR. Why? The FBAR is one of the most critical forms an American expat taxpayer needs to fill out every year if they qualify.
The Foreign Bank Account Report is a form that you, as a US citizen abroad, must fill out if you have had over $10,000 total from all foreign financial accounts at any one time during the year. It is an informational form to fill out and extremely important.
If a tax software company does not include the FBAR, this is a problem. You can get severe monetary penalties – up to $10,000 – from the IRS if you don’t file the FBAR. So frankly, a US tax software should provide this form for you.
A Software Made Only for US Citizens Abroad
Frankly, we wouldn’t be here if popular tax softwares for US tax returns worked well for Americans living abroad. Fortunatly, Yahoo Finance named our US expat tax software the leading, most affordable solution for that.
US tax filers fill out some basic information within our software, how long you have been abroad, and what type of income sources you have. From there, our software determines the best tax benefits and forms for you on your federal tax return. These forms include:
- Form 1116: Foreign Tax Credit
- Form 2555: Foreign Earned Income Exclusion
- Form 8938: Statement of Specified Foreign Financial Assets (FATCA)
- Form 8833: Tax Treaty Disclosure
- Form 8621: PFIC Forms, including QEF and Mark to Market Elections
- Foreign Bank Account Report (FBAR)
We may look like the pricier tax software at first glance. In the end, we’re a very affordable solution for expat tax filing – especially considering the tax forms and human expert tax support you’ll receive.
For the federal US tax return and FBAR, we charge a flat rate of 149 euro already, including all applicable sales tax.
Software Includes Excellent Security Features
You need to trust that the best US tax software for expats provides excellent security for your personal tax information.
We have top-notch security experts on our team who have over 20 years of experience in the IT field. We ensure your safety and security of personal tax information on our software in the following ways:
- On all infrastructure levels, MyExpatTaxes uses state-of-the-art security best practices
- We comply with GDPR guidelines
- No client data is shared with third parties, except the IRS tax authorities, of course, which is the aim of our software.
- Two-factor authentication for passwords – taxes for expats is even more secure
- Passwords or security question answers are stored as hashes only so that not even our team cannot read this data.
The Company is Authentic with Real Credentials
When choosing a US tax company for expats, you want to look for a company with some years under their belt to show they are a leading, trusted company.
Secondly, make sure to double-check if the company claims who they say they are. As the saying goes, there is “proof in the pudding.” Google the company and check sources to ensure you choose an authentic tax software company with real credentials if you want to file expat taxes with them.
We at MyExpatTaxes are proud to have:
- The first and most trusted US tax software for Americans Abroad, founded in 2018
- A CEO is an IRS Enrolled Agent and American abroad that knows precisely what the expatriate taxation process is like. Recently, she was accepted into the Forbes Financial Council!
- A leadership team with CPAs and tax experts
- Listed as having the Best US Tax Software for Expatriates in 2021 by the Balance
- Our software can be licensed to other businesses
- Won the award for Best Expatriate Tax Management Platform 2019 by Acquisition International
- A fun community with over 10k+ customers and influencers who use our service.
You can see all of this on our Media and Press page.
Additional Points to Consider
You Know Who is Behind the Company
You should know who is behind the best US expat tax software company you’re looking into. Transparency is key, and knowing the whole story about a company is essential.
As you can see on our Team page – we share who built this company and why we created a US tax software for expats. In addition, you can read about the co-founders, who have been featured in prominent publications and podcasts. Our CEO, most specifically, holds webinars within expatriate communities, including Democrats Abroad and FAWCO.
Don’t just depend on one website to read customer reviews. Instead, see what customers are saying on different platforms to get a full scope of their US expat tax services. As an example, you can read our reviews on Facebook, Instagram, Google, and Trustpilot.
Bottom Line: Trust Your Gut
We want to share the bottom line regarding how to choose the best US tax software for expats: Trust your gut. Make sure you feel good using the expat tax software you choose and that the company makes your tax situation and budget top priority.
Our software has been proven to be affordable and works for thousands of Americans abroad from all different tax situations. The proof is in the pudding with our customer reviews, and award-winning software. We guarantee you will be in good hands with us.
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