U.s. Federal Tax Filing 2009..which Form, E-file?

[grassroots]

Any ideas on filing U.S. Federal Income Tax from inside Thailand? Which is the correct form...1040NR, 1040, 1040A when married to a Thai National with no personal income of her own? Is e-file possible using IRS 'certified' companies....which is best and easiest to use?

I have tried several e-file companies and NONE can process my return using my Thailand address. In years past I successfully e-filed from Thailand....BUT NOT THIS YEAR....something has changed.

Help is appreciated...

Thanks,

grassroots

[OriginalPoster]

That question comes up on ThaiVisa each year. The "foreign address" problem is a limitation of certain tax filing services, not an IRS limitation. For instance (as of last yet at least) people using Turbotax were not able to file electronically if they had a foerign address but people using Taxact reported that they could.

[grassroots]

That question comes up on ThaiVisa each year. The "foreign address" problem is a limitation of certain tax filing services, not an IRS limitation. For instance (as of last yet at least) people using Turbotax were not able to file electronically if they had a foerign address but people using Taxact reported that they could.

Thanks OriginalPoster ! TaxAct worked like a charm! Easy to use, free and after looking at all of the qualifications for many other services, TaxAct.com was the ONLY service that allowed the use of a foreign address to e-file U.S. Federal Income Tax Returns.

Other U.S. Citizens that want to use TaxAct.com should be aware that they do try to switch you to their premium (Paid Services) often during the interview process. Read carefully and you will be finished fast and free.

[vagabond48]

I have used Taxact for 3 years and last year was the 1st time I used it with my Thailand address. For some illogical reason, last year I was unable to file an efile because of the recovery rebate credit I put in for.

[vagabond48]

For those of you who are using the free downloaded Taxact software and want to save their returns on their PC, just download the free Cutepdf software which acts as a printer and turns anything you want to print into a PDF file.

[Jingthing]

I think if you have anything like capital gains issues they make you pay for it. The Noive!

[moe666]

Yes Jingthing any filing more complicated than a 1040ez I believe will cost you.

[OriginalPoster]

That question comes up on ThaiVisa each year. The "foreign address" problem is a limitation of certain tax filing services, not an IRS limitation. For instance (as of last yet at least) people using Turbotax were not able to file electronically if they had a foerign address but people using Taxact reported that they could.

Thanks OriginalPoster ! TaxAct worked like a charm! Easy to use, free and after looking at all of the qualifications for many other services, TaxAct.com was the ONLY service that allowed the use of a foreign address to e-file U.S. Federal Income Tax Returns.

Other U.S. Citizens that want to use TaxAct.com should be aware that they do try to switch you to their premium (Paid Services) often during the interview process. Read carefully and you will be finished fast and free.

Glad that it worked for you. Where I ran into a roadblock with e-filing last year was that TurboTax and TaxAct both seemed unwilling to let me eFile if I had wages without having a corresponding W2 form (which is generally the case if you work for a non-US employer outside of the US). I was able to get around the foreign address limitation by using a virtual address in the US but I never did find a work-around for not having a W2. Eventually I gave in an and snail-mailed my return in on account of that. Haven't tried to file my taxes yet this year, but I'm guessing that I'll run into the same issue this year too.

[vagabond48]

I think if you have anything like capital gains issues they make you pay for it. The Noive!

Yes Jingthing any filing more complicated than a 1040ez I believe will cost you.

Based on your statements, it doesn't sound like neither of you have used the free downloaded Taxact version?

I file a 1040 return and although it is no longer very complicated, I do have capital gains, stock dividends, IRA transactions etc. . The interview process for the 1040 using this software does not have any gotchas but you are limited to the 1040 federal form only.

Yes the free version doesn't have a few nice features, such as, saving your return as a PDF file which I gave a work-around, import last year's tax information (takes 10 minutes to re-enter for me), do the 1040X amended form etc. . If you want those features, you can fork up $13 and your problem is solved.

[Jingthing]

So it does schedule D free?

[thaihome]

I used the $12 version of Tax Act last year. Worked good, but as with all these programs, they are not really setup for high income expats. They can do the foreign income exclusion and foreign tax credits (though you have to keep track of the carryover manually). The biggest problem is they don’t handle the Alternate Minimum Tax (AMT) correctly. You have to manually calculate the foreign tax credits that can be used to offset that.

TH

[vagabond48]

So it does schedule D free?

Duh UG, I wrote the following regarding the free version,

I file a 1040 return and although it is no longer very complicated, I do have capital gains, stock dividends, IRA transactions etc. . The interview process for the 1040 using this software does not have any gotchas but you are limited to the 1040 federal form only.Yes the free version doesn't have a few nice features, such as, saving your return as a PDF file which I gave a work-around, import last year's tax information (takes 10 minutes to re-enter for me), do the 1040X amended form etc. . If you want those features, you can fork up $13 and your problem is solved.

so capital gains = 1040 schedule D

I hope you didn't think that when I wrote the free software does 1040 federal form only that it would not include all the associated supporting forms, like schedule A, D, E etc..

[Jingthing]

Well I have tried using the free version in previous years and quite soon after starting to use it the software tells me that I MUST buy the software to do what I need. I don't recall the details but I don't think I have anything very unusual going on. I'll try it again this year and have a look (and probably end up doing a paper form again).

[vagabond48]

So it does schedule D free?

Duh UG, I wrote the following regarding the free version,

so capital gains = 1040 schedule D

I need to stop hanging out of my alternate universe.

UG, didn't even post to this thread and probably won't see this but, sorry UG.

I meant Jingthing.

[OriginalPoster]

I used the $12 version of Tax Act last year. Worked good, but as with all these programs, they are not really setup for high income expats. They can do the foreign income exclusion and foreign tax credits (though you have to keep track of the carryover manually). The biggest problem is they don't handle the Alternate Minimum Tax (AMT) correctly. You have to manually calculate the foreign tax credits that can be used to offset that.

TH

Turbotax seems to handle AMT correctly, though you may need to mail in your return rather than e-file depending upon which forms you use.

[xjessie007]

I would not recommend using e/file 3rd party companies or their software. If the 3rd party software messes up, IRS will go after you not after the 3rd party tax sw provider. There are some benefits in the 3rd party tax software, but there are also some drawbacks associated with it. Just reading forms and schedules instructions patiently and thoroughly, and you might be fine. I have run into some tax software that had mistakes. There are many sources online that provide information. For example, see here for the 1040 instructions: 1040 instructions . General advice on the federal tax return completion (rounding, sort order, etc.), here is a good page on federal tax return: federal tax return. There are many sources online, you can find everything online. Using the tax software is not a great benefit. It does not save you very much time, and by using it, you increase your risks of having it wrong.

[Jingthing]

I did manage to e-file use taxact last year.

[craigt3365]

I did manage to e-file use taxact last year.

I've efiled my return as well as my parents for years. Never had a problem...but that doesn't mean it couldn't happen!!!

[lopburi3]

I have also been using TaxAct software for the last decade for online filing from Thailand and no issues. Believe all the software providers pay for any fines caused by there errors in any case.