Software suggestions for 1040, form 2555 & possible 1116
Moderator: Mark T Serbinski CA CPA
Software suggestions for 1040, form 2555 & possible 1116
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.
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.
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- Posts: 16
- Joined: Sat Nov 18, 2017 6:39 pm
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.
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.
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.
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.
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
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- Posts: 245
- Joined: Tue Aug 30, 2011 12:15 am
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.
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- Posts: 245
- Joined: Tue Aug 30, 2011 12:15 am
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.
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.
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- Posts: 245
- Joined: Tue Aug 30, 2011 12:15 am
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.
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.