Filing Us Taxes Electronically

[Jingthing]

Its my first time to file with the IRS as an expat and already a hitch.

I loaded up TurboTax and was doing the efile form for getting an extension until October 15, and up comes this message: You cannot efile if using a FOREIGN address.

For real? I could use a US address but I want to make it clear to the IRS that I don't live in the US anymore, and what better way than listing a foreign address?

Am I missing something here? Is this the IRS rule of turbotax rule, though it sounds like it is the IRS rule.

So, I know there are some tax gurus here. Is there a way to efile using a foreign address? If not, doesn't using a US address tie you to the STATE of your US address?

EDIT:

OK, I have new info from the IRS. Clearly, a foreign address is OK, so whats up with TurboTax?

Does My Return Have To Be On Paper?

IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. It's so easy, millions of people use it.

IRS e-file offers accurate, safe, and fast alternatives to filing on paper. IRS computers quickly and automatically check for errors or other missing information. Even returns with a foreign address can be e-filed!

http://www.irs.gov/publications/p54/ch01.html#d0e1060

Edited February 5, 2007 by Jingthing

[Jingthing]

This appears to be a TurboTax issue. It does not support e-filing of any kind of extensions when using a foreign address, either the standard one of the 4 month one after the automatic expat extension.

OK, now this is getting silly. I started to do the actual return and I got the exact same message:

You cannot file your tax return electronically if you have a foreign address.

Whats up? The IRS clearly says you can do this, and isn't TurboTax the biggest online filing software?

Edited February 5, 2007 by Jingthing

[thaihome]

This appears to be a TurboTax issue. It does not support e-filing of any kind of extensions when using a foreign address, either the standard one of the 4 month one after the automatic expat extension.

OK, now this is getting silly. I started to do the actual return and I got the exact same message:

You cannot file your tax return electronically if you have a foreign address.

Whats up? The IRS clearly says you can do this, and isn't TurboTax the biggest online filing software?

Trubo Tax is not setup for expats. Did you buy it in the US hoping to use it with a foreign address? Think about it.

Be a real expat and hire an accountant to take care of it.

Also, you don't have file for first 2 month extension, it is automatic.

TH

Edited February 5, 2007 by thaihome

[Jingthing]

Well, I don't have complex taxes. I don't need an accountant. If I can't efile, I will just file a paper return. And, thinking about it, I still don't get the total discrepancy where TurboTax the leading online tax software doesn't support a foreign address while the IRS says not only can you do it but they want you to do it. So, how exactly? Another software package?

If this makes me an improper expat, I can live with that.

Edited February 5, 2007 by Jingthing

[mbkudu]

Why not use a US address? I have lived in Thailand the past 8 months and just did my 2006 taxes through Turbotax. I listed my mothers home address and had the state and federal refunds electronically direct deposited into her bank account in the US. I could have had it deposited into my own account in the US and withdrawn it from an ATM here in Thailand, but I'm giving the money to my mom anyway. I don't think they care where you live at the moment; it's just a technicality for them.

Edited February 5, 2007 by mbkudu

[Jingthing]

Why not use a US address? I have lived in Thailand the past 8 months and just did my 2006 taxes through Turbotax. I listed my mothers home address and had the state and federal refunds electronically direct deposited into her bank account in the US. I could have had it deposited into my own account in the US and withdrawn it from an ATM here in Thailand, but I'm giving the money to my mom anyway. I don't think they care where you live at the moment; it's just a technicality for them.

The main reason I do not want to use a US address is because I do not want to file a tax return with my old state anymore. If you live outside the US, you shouldn't need to be associated with any state. I would think using a US state address would not clearly show you as a "real" expat. Thats why.

Frankly, it is bad enough that US expats have to file federal taxes, state and local taxes to a place they don't live is ridiculous.

Edited February 5, 2007 by Jingthing

[lopburi3]

I have been filing electronically for the last five years with Taxact using a foreign address so it does not appear to be an IRS issue.

[autonomous_unit]

Right. If you have someone you can trust, using a US address on the filings should not be a problem. According to a preparer I hired previously, and my own experiences now, there is precedence to use a US correspondance address even while filing for the foreign earned income exclusion and disclaiming state residence. She said many expats she helped even used some corporate office address of their employer, who then delivered the IRS correspondance on their behalf.

I used a relative's address in California simultaneously with filing my federal taxes and my non-resident CA taxes (in the first year abroad). I did not try electronic filing however, as I needed a place for a cover letter explaining a very delayed filing... I got my refunds and no issues regarding the address.

[mbkudu]

Why not use a US address? I have lived in Thailand the past 8 months and just did my 2006 taxes through Turbotax. I listed my mothers home address and had the state and federal refunds electronically direct deposited into her bank account in the US. I could have had it deposited into my own account in the US and withdrawn it from an ATM here in Thailand, but I'm giving the money to my mom anyway. I don't think they care where you live at the moment; it's just a technicality for them.

The main reason I do not want to use a US address is because I do not want to file a tax return with my old state anymore. If you live outside the US, you shouldn't need to be associated with any state. I would think using a US state address would not clearly show you as a "real" expat. Thats why.

Frankly, it is bad enough that US expats have to file federal taxes, state and local taxes to a place they don't live is ridiculous.

Sorry Jingthing, but I think you're making a mountain out of a mole hill. I used a US address because I worked and lived most of 2006 in the US (a little over half the year) so I used the address where I last lived.

[Jingthing]

Molehill mountain? Perhaps.

Anyway, thanks for the tip about taxact, Lopburi. Looks promising.

Edited February 5, 2007 by Jingthing

[Jingthing]

Update: I was able to file successfully for a 6 month extension using taxact online, listing a Thailand address (so far for free).

There is one funny glitch if trying to do this. You must state a date (not printed on the filing form) after April 17 or the software will not check the "Living out of country" box.

I also had a look at H & R Block online and they appear to support e-filing using a foreign address as well (though not 100 percent sure at it was difficult to test). I called TurboTax basically to suggest that they add this functionality to their product given they are the largest online tax software company and that the IRS both allows and encourages all tax filers to use e-file.

Edited February 6, 2007 by Jingthing

[mbkudu]

That's good to know. I have one question. I won't be working technically, in the US nor here, for the next four years because I am a student here in Thailand. Should I even bother filing a US tax return? I have heard some say yes, and that I have to file student exempt and others say that I shouldn't bother.

[Jingthing]

That's good to know. I have one question. I won't be working technically, in the US nor here, for the next four years because I am a student here in Thailand. Should I even bother filing a US tax return? I have heard some say yes, and that I have to file student exempt and others say that I shouldn't bother.

Hi there,

Technically, if you do not meet the income requirements of a need to file, you do not need to file. There are a few exceptions. Check irs.gov and go through the questions for about whether you need to file. Most likely, you do not. In fact, the IRS is now making it clear that they do not want you to file if you don't need to, it costs money to process returns that don't bring in the money.

Perhaps some tax gurus would care to comment, but I get the impression that in some cases, it is not a bad idea to file anyway even if you don't need to. If you don't file for several years, and then you file later, it would seem to me there might be some question about whether the previous years were legit. I am retired in Thailand and although I really need to file for this tax year (some big stock sales) some years I probably won't need to technically, but I might anyway, just so the US government knows I still exist, because who knows what the future will bring. Yeah, I am probably a bit paranoid. Oh well.