Software suggestions for 1040, form 2555 & possible 1116

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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fangle
Posts: 22
Joined: Tue Feb 18, 2014 1:00 pm

Software suggestions for 1040, form 2555 & possible 1116

Post by fangle »

Dual can/us citizen: can resident, working & planning to remain in Can. Nothing in the US but my 401k.

I am looking for software to help me with the mechanics of late filing my 2016 US, as well as 2017 US returns. I'm past e-file deadline for 2016, but I will use the 2017 results as a template to make sure I'm filing out the 2016 forms correctly as income sources will be similar. Solo on paper is not for me. (I was distracted by family member health issues, but I am up to date on the FBAR)

I will not have any US tax either year as most of my Canadian income will be taken care of with foreign earned income exclusion (form 2555). I have selected the exclusion in the past so I don't think the late 2016 is an issue.

My non-excluded Can income in both years is a small amount of interest and some Employment Insurance benefits. I have learned here that the EI is not considered earned income and cannot be excluded, so I will report it as other income on the 1040 on the line for employment insurance. However, my standard deduction should prevent any US tax.

I am uncertain therefore if there any benefit to form 1116 for the proportion of Can tax related to the EI and interest. I believe this would results in a carry forward since I have no need for the credit? I don't know how or if a carry forward could be of use in the future? I have read posts, but I'm just not getting it.

As for software, I've used US turbotax in the past, but they don't allow me to buy it with a foreign billing address. Last year they stopped giving me a free code to solve the problem and suggested I make up a US address. Too sketchy.

My income is modest so I've been been checking out the list of free e-file providers on the IRS site, but I would appreciate any pointers to one that doesn't require much expertise for the forms I require.

Thanks all.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I use taxact.

Some others living in Canada must have a solution, because I've never heard of any on this board not being able to do their US taxes using current software.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
shabooga
Posts: 9
Joined: Sat Jan 21, 2017 3:52 pm

Post by shabooga »

I tried to use H&R Block but experiencing issues when I tried to e-file. I second nelsona's opinion since I changed to TaxAct and never had an issue with them.
totality6666
Posts: 16
Joined: Sat Nov 18, 2017 6:39 pm

Post by totality6666 »

I used taxact for 1040NR, could not be smoother.
rafa02
Posts: 95
Joined: Sat May 26, 2012 3:18 pm

Post by rafa02 »

I have used TaxAct for many years and have always been satisfied, although I am disappointed in the significant price increase the past two years.

Last year I decided to try H&R Block. I was curious about it and it was less costly, but it had numerous limitations for cross border filing and when I attempted to e-file a family members return, it was rejected. First time I ever had an e-file rejected, and after numerous edits, I could never successfully e-file the return.

I ended up purchasing Taxact and had no more issues with the returns. If they continue increasing the price of Taxact, I will find another way.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

$13 for taxact is too much for you?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
rafa02
Posts: 95
Joined: Sat May 26, 2012 3:18 pm

Post by rafa02 »

13$? That seems like a price from a couple of years ago. The price I see on the Taxact website is 27$ for Plus and 39$ for Freelancer and those are for online versions. I have three returns to complete and use the desktop versions, and the Plus version is $64 and Freelancer $76.

I prepurchased an early version of Plus desktop for $43.40, and one of my requirements was that it include form EZ-C, as I have two familly members with some self-employmet income. The Taxact website listed this form as part of the Plus version, so I purchased. When the preview version became available, this EZ-C form was not included, and I engaged a chat session and was assured that this was only a preview version, and this form would be included in the final release.

When the updated version was released, this form was not included, and I engaged another chat session explaining all of this. After considerable time and being transferred to several people, I was provided with the Freelancer version at no additional cost. I am pleased with the efforts of Taxact to resolve this, but the idea of requiring this Freelancer version at $76, seems excessive to me, and there are alternatives.
rafa02
Posts: 95
Joined: Sat May 26, 2012 3:18 pm

Post by rafa02 »

According to the Taxact website, prices are going up as of January 29th.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I use online plus version, lock in price during the year, and pay 13. Next year I'll pay maybe 27. I don't buy any state version. I let then run it and give me a total, then fill the state one on the state website.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Post by CdnAmerican »

I was able to order TurboTax from amazon.com. They didn't mind shipping it to Canada, I presume since they didn't offer it at amazon.ca. Good luck!
Not a professional opinion.
rafa02
Posts: 95
Joined: Sat May 26, 2012 3:18 pm

Post by rafa02 »

I am not surprised that Amazon would ship to Canada, for the price of TurboTax I would think they would ship to the North Pole. The so-called Deluxe version is $40 (per return) and apparently, accordingly to the Turbotax website does not include form 8833 (if you need it), and apparently it does not include a fairly basic schedule D. For that you need the Premier version, at $60. If you have self employment income, apparently the Deluxe version will allow recording the income, but no expenses. For that you need the self-employed version at $90. Or, depending on you particular situation, you could go to the IRS freefile website and use one of the free options.
CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Post by CdnAmerican »

And, for what it's worth, the US Deluxe TurboTax is not Deluxe enough to account for a Canada-US totalization agreement for Social Security. Is there any way to note the Canada-US treaty so that it does not compute Self-employment tax (SE)?
Not a professional opinion.
rafa02
Posts: 95
Joined: Sat May 26, 2012 3:18 pm

Post by rafa02 »

I am not aware of any tax software that will provide an option to exempt SE tax. As far as I can discern, you will need to override the SE amount on line 57, which will require mailing a paper return to the IRS. Also, it is suggested to write "exempt by treaty" on line 57, on the printed copy.

Also a good idea to get a "certificate of coverage" (CPT56) from CRA to verify that you are covered by Canada and include this certificate with your US return.

I did notice that Taxact now includes an option to exempt Canadian social security benefits from taxable benefits, so perhaps in the future it will be possible to exempt SE tax, as well.
CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Post by CdnAmerican »

Thanks rafa02! I can see why software manufacturers would not put a lot of effort into forms for expatriates ... lots of work for them, for little payoff.
Not a professional opinion.
MaggieA
Posts: 150
Joined: Sun Oct 31, 2004 4:06 pm

Post by MaggieA »

I use my US work VPN to buy US TurboTax and download it from Amazon. It's my one exception to self imposed rule of not using the company VPN for personal stuff.

Last year I entered an SE adjustment for negative the amount of SE tax TurboTax had computed for my self-employed spouse, and typed in a sentence about the bilateral agreement between US and Canada as explanation. This was successfully e-filed (from Canadian ISP, no need for VPN) and accepted by IRS. Intending the same this year.
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