Tax software for expatriates

DonMurphyCanada · Post by **DonMurphyCanada** » Wed Mar 12, 2014 11:52 pm

Hello,

I saw a post where Nelsona had asked us to please use tax software. I have been manually entering numbers on forms and doing the calculations myself. I like the idea of software.

So I ask you, what US tax software is working well for you folks that includes the forms we need (1040, 1116, 3250, 3250a, 8938 etc.)

What is the relative cost of the software?
Is it available for past years?

TIA

Don

nelsona · Post by **nelsona** » Thu Mar 13, 2014 12:12 am

3520, 3520-a is not part of the tax return, so never expect this from any off-the-shelf software. I use taxact for about $15.
ufile.ca handles emigrant and newcomer taxes as well as 216 and 217 returns.

Frankd1 · Post by **Frankd1** » Tue Mar 18, 2014 11:01 am

TaxAct as well

MGeorge · Post by **MGeorge** » Tue Mar 18, 2014 4:48 pm

I used TaxACT this year. They really improved the foreign tax credit carry over worksheet - which is probably the single most important carryover for an expat.

DonMurphyCanada · Post by **DonMurphyCanada** » Tue Mar 18, 2014 5:55 pm

Yes. I am all filed as of today too. Used TaxAct. Was very impressed.

sunnysga · Post by **sunnysga** » Mon Mar 31, 2014 10:46 am

I am using TaxAct to prepare US return. I notice however, that you can only make 5 copies of form 8621 (for PFICs) within the program. How did you work around that? Thank you.

DonMurphyCanada · Post by **DonMurphyCanada** » Mon Mar 31, 2014 6:08 pm

Sorry did not apply to me.

Don

[quote="sunnysga"]I am using TaxAct to prepare US return. I notice however, that you can only make 5 copies of form 8621 (for PFICs) within the program. How did you work around that? Thank you.[/quote]

DonMurphyCanada · Post by **DonMurphyCanada** » Mon Mar 31, 2014 6:13 pm

I see I may have been wrong about this. My situation is a RESP for $6000. I guess I will now be looking at PFIC now too....

[quote="DonMurphyCanada"]Sorry did not apply to me.

Don

[quote="sunnysga"]I am using TaxAct to prepare US return. I notice however, that you can only make 5 copies of form 8621 (for PFICs) within the program. How did you work around that? Thank you.[/quote][/quote]

sunnysga · Post by **sunnysga** » Mon Mar 31, 2014 7:32 pm

TaxAct tech support supplied the answer. Apparently you can only do 5 Forms 8621 because that is the max # for e-filing. Otherwise, you have to paper file. This is the workaround in TaxACT in case you need to enter more than 5 Form 8621s:

Before starting the steps below, group the forms according to the election that needs to be selected in Part I of the Form 8621. Only forms with the same election are able to be combined on a single Form 8621, which is required in Step 4 below.
1. Set aside all but four (4) of the Forms 8621, ensuring that the remaining forms have the same election chosen in Part I of the form. If this is not possible, see the note below.
2. Enter each of the forms you have grouped together one at a time in the program. Print each of these forms, then delete them from the program so you can enter more. In the end you should have a printed copy of each of the Forms 8621, other then the four set aside.
3. Be sure all of the Forms 8621 are deleted in the return so there is no accidental doubling of amounts in the return.
4. Enter the four forms you set aside. On the fifth form, enter the combined amounts from the printed forms you grouped together. In the field for Name of passive foreign investment company (PFIC) or qualified electing fund (QEF) on that form(s) enter the text TOTALS FROM COMBINED FORMS 8621. Note that these combined amounts must be from forms with the same election selected in Part I of the Form 8621.
When you print the return, do NOT send the Form(s) 8621 with the combined amounts to the IRS. Instead, replace the form(s) with the printed copies of each individual Form 8621 (from Step 2 above). The combined forms were only entered to enable all of the information to flow correctly to federal Form 1040 in TaxACT.

Note: If it is not possible to group all but four of the forms together, you will need to set aside three individual forms and have two groups for the remaining forms. These two groups should have two separate elections in Part I, but the forms within each group must all have the same election.

Junoon123 · Post by **Junoon123** » Wed Apr 02, 2014 5:44 pm

use taxact

hello3520 · Post by **hello3520** » Wed Apr 02, 2014 6:00 pm

I could not get Taxact or TurboTax to figure out the 1116 foreign tax credit.

Even though it was painful, I ended up just doing them by hand using excel and the pdf copy of the form.

The instructions are awful but once I worked through it once I could see what the IRS was asking for.

nelsona · Post by **nelsona** » Wed Apr 02, 2014 6:14 pm

I have never had issue with 1116 and taxact. Possibly you expected 1116 to be more than taxact correctly calculated. 1116 almost never yield 100% credit. That is the way it is supposed to calculate.

DonMurphyCanada · Post by **DonMurphyCanada** » Wed Apr 02, 2014 9:00 pm

I used taxact to file 1116 for 2013 for this year. I had read through the form instructions prior though.

[quote="nelsona"]I have never had issue with 1116 and taxact. Possibly you expected 1116 to be more than taxact correctly calculated. 1116 almost never yield 100% credit. That is the way it is supposed to calculate.[/quote]

nelsona · Post by **nelsona** » Thu Apr 03, 2014 9:53 am

Don please stop using the quute feature, it doesn't work, clutters you posts, and we all know what we wrote.

DonMurphyCanada · Post by **DonMurphyCanada** » Thu Apr 03, 2014 10:53 am

Yes I see what you mean!