Any accountants out there knowledgeable about U.S. tax returns?

[Nampa89]

Or any places in Chiang Mai to do it? I can do it on line but I've never attempted it before.

 

Sent from my VIVO XL using Thailand Forum - Thaivisa mobile app

 

 

[CharlieH]

You might do better with this is the "home country" forum.

 

Let me know if you want this moved.

[Nampa89]

Yes please. Thank you.

Sent from my VIVO XL using Thailand Forum - Thaivisa mobile app

[CharlieH]

Topic moved as requested, link left at origin.

[tonray]

If your income is below a certain level, you can use free software to do your return online...it;'s easy.

 

https://www.irs.gov/uac/free-file-do-your-federal-taxes-for-free

[55Jay]

I'm only guessing your tax/income situation is not complicated.  That being the case, agree with Tonray^, if you can use Facebook and ThaiVisa, you can do your taxes on line in no time.  Just a bit of reading, minor prep work, it's not difficult.

[KhonKaenKowboy]

I used www.taxhawk.com 100% free and it accommodated 70 stock sales.  Accountants use very similar programs.  You can buy audit protection for a nominal amount.

[Thanyaburi Mac]

The embassy has some minimal info:

 

https://th.usembassy.gov/u-s-citizen-services/internal-revenue-service-u-s-taxes/

 

and a list of tax consultants:

 

http://photos.state.gov/libraries/thailand/231771/acs/tax_consultants.pdf

[Jingthing]

3 hours ago, KhonKaenKowboy said:

I used www.taxhawk.com 100% free and it accommodated 70 stock sales.  Accountants use very similar programs.  You can buy audit protection for a nominal amount.

Does taxhawk allow using a foreign address?

[Langsuan Man]

5 hours ago, Jingthing said:

Does taxhawk allow using a foreign address?

appears that they do:

 

Quote

How do I enter a foreign address?

Answer Yes to the Foreign Address? question. This will cause the foreign country information boxes to appear. 

Enter the foreign street address in the Address information box. Enter the foreign city in the City box. Enter any province information in the Province or State box and postal code information in the Postal Code box. Select the foreign country from the Foreign Country box.

source  :https://www.taxhawk.com

[skatewash]

I recommend TurboTax Free Edition https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp as the most popular and the one that has the most hand-holding for those who have not used tax preparation software or filed their returns themselves online before.  Very likely there will be no cost to use their software or to file your federal return online.

 

Be aware that the filing deadline is approaching fast on April 18th, 2017.  If you live outside the US you can apply for an "automatic" extension of time to file (new deadline would be October 16, 2017).  TaxAct https://www.taxact.com/individual-taxes/online/free software allows you to apply for this extension online for free, while TurboTax does not does not support online filing of the extension.  Use TaxAct if you think you will need the extra time.

Finally, be aware that if you had any financial accounts outside the US whose combined total value was at any point in time during 2016 greater than $10,000 (equivalent) then you must file an FBAR report to the US government.  The deadline is April 18, 2016, and cannot be extended.  Failure to file this report can result in drastic penalties.

 

UPDATE:  apparently the due date of the FBAR is now October 16, 2017.  See the following for an explanation and good advice about filing your FBAR:

 

By the way, both TurboTax and TaxAct allow you to enter your foreign (outside US) address.

[Jingthing]

Living abroad, I don't think you even need to file for the first level shorter extension. The second level (till October something) you DO need to file for. I've been using taxact for years to apply for the second level extension as I'm such a procrastinator (but I don't owe taxes). 

taxact as of last year stopped offering stock sales forms free, so if you've got that, there is now a charge. 

[skatewash]

49 minutes ago, Jingthing said:

Living abroad, I don't think you even need to file for the first level shorter extension. The second level (till October something) you DO need to file for. I've been using taxact for years to apply for the second level extension as I'm such a procrastinator (but I don't owe taxes). 

taxact as of last year stopped offering stock sales forms free, so if you've got that, there is now a charge. 

Yes, I think the first extension level doesn't need to be applied for as long as you live outside the US (the one to June 15), while the longer extension (the one to October 16) needs to be applied for before the regular tax deadline (April 18).  My understanding is that as long as it is applied for (with a qualifying reason, such as living outside the US), it is routinely granted.  I know of no way to check that it has been granted, but you can check with the software you used to apply for it online (e.g., TaxAct) and it will tell you that the application has been "accepted by the IRS" which I take to be tantamount to being granted.  That is my understanding, anyway.

[Jingthing]

You get an official email. Have done several times.

[skatewash]

57 minutes ago, Jingthing said:

You get an official email. Have done several times.

I thought I received an official email last year, but have not received one this year.  

I routinely file for the extension every year because I routinely convert a part of my traditional IRA to a Roth IRA and then recharacterize a portion of that conversion back to my traditional IRA when I figure out exactly what my taxes are each year.  I need to know my exact taxable income before I can know how much of my conversion to recharacterize and be below the threshold to pay any income taxes on my income.  Each year it's a slightly different amount, but steadily I'm converting money from my tax deferred accounts to my tax free accounts, a little bit at a time, year by year.  The recharacterization request is a paper-based application (not sure because that's legally required or just the procedure my custodian follows) and I have to wait to receive a confirmation that the recharacterization is completed because it will inform me the actual amount of the transfer from Roth IRA back to traditional IRA (that is, the portion of my original conversion recharacterized, plus any related earnings or minus any related losses, which the custodian calculates for me) in order to put an explanatory notation in my income tax return.  This all takes time and I'm rarely able to get everything done by the normal filing deadline, hence the request for extension of filing deadline.  This year I will probably be able to file before the June 15 date, which extension is automatic for a US taxpayer residing abroad so all should be well either way (whether I actually received the extension to October 16 or not).

[skatewash]

Quote

 

Date: Wednesday, March 22, 2017 08:05 AM
Taxpayer Name: JOHN Q TAXPAYER
Status: Federal Extension Electronic Return Accepted

Great News! TaxAct has received notice that the Federal Extension electronic return for JOHN Q TAXPAYER was accepted by the Internal Revenue Service on 03/22/2017.

The Submission ID for this return is 99999999999999999999.

 

I got the above email from TaxAct this year and received the below email from TurboTax last year.  I guess that's as official as it gets.  The notification directly from the IRS I thought I received in previous years was probably just a figment of my imagination.  Slightly different formats on the email but the notification seems to come through the tax preparation software rather than directly from the IRS.  Unlike the acknowledgement email that comes directly from FinCEN when you file your FBAR.

 

Quote

 

Your extension has been accepted!

Great news, John Q Taxpayer. 
 
You have until 10/17/2016 to file your federal taxes. 
 
Note: An extension to file is NOT an extension to pay. If you owe taxes, be sure to pay the IRS no later than April 18, 2016 to avoid owing extra money in penalties or interest. 
 
Next Step
All that's left to do now is to finish up your federal tax return. Simply sign in to MyTurboTax, and we'll help you pick up right where you left off.

 

 

[Langsuan Man]

18 hours ago, Jingthing said:

taxact as of last year stopped offering stock sales forms free, so if you've got that, there is now a charge. 

Turbo Tax did the same two  years ago, you had to upgrade to the next level to obtain the "schedules".  Their was a massive outcry but they weathered the storm by backing down, but instituted the policy again the following year.  I tried tax act last year but did not like it since it would not "poll" my investment accounts to obtain the information on sales, dividends , interest etc. like Turbo Tax does

 

This  year I used Credit Karma tax preparation software because they show you exactly what it going on the 1040 before you hit the submit button

 

Just a word of warning to anyone that is going to change tax preparation software, your AGI as listed on line 37 of your previous years 1040 is what is needed to prove your identity to the IRS.  So make sure you have that available.  My tax act copy had one figure but the IRS had a different one (not a major discrepancy, but enough for the IRS to refuse e-file).  So double check with what was actually submitted by your previous software, not just what your file copy may show 

[skatewash]

20 minutes ago, Langsuan Man said:

Turbo Tax did the same two  years ago, you had to upgrade to the next level to obtain the "schedules".  Their was a massive outcry but they weathered the storm by backing down, but instituted the policy again the following year.  I tried tax act last year but did not like it since it would not "poll" my investment accounts to obtain the information on sales, dividends , interest etc. like Turbo Tax does

 

This  year I used Credit Karma tax preparation software because they show you exactly what it going on the 1040 before you hit the submit button

 

Just a word of warning to anyone that is going to change tax preparation software, your AGI as listed on line 37 of your previous years 1040 is what is needed to prove your identity to the IRS.  So make sure you have that available.  My tax act copy had one figure but the IRS had a different one (not a major discrepancy, but enough for the IRS to refuse e-file).  So double check with what was actually submitted by your previous software, not just what your file copy may show 

I typically do both TurboTax and TaxAct as an accuracy check and file with the one that does everything I need for free.  I haven't looked into Credit Karma tax preparation software yet, but will take a look next year.

 

They do like to change around what's free every year.  Sometimes TurboTax gives a better deal and sometimes it's TaxAct.   It's like opening a box of chocolates every year, you never know exactly what you'll get ;-)

[KhonKaenKowboy]

going to use the credit karma one but needed a us phone number for the process even though have been a credit karma member for years.....also, tried using one of the free ones recommended by IRS and it completely bombed on my 40th stock sale.  Taxhawk imported my info from last years Taxact....hawk is good, I think they are doing the same as the otyherrs did..give it away for a while then see how much they can charge loyal customers.

[skatewash]

31 minutes ago, KhonKaenKowboy said:

going to use the credit karma one but needed a us phone number for the process even though have been a credit karma member for years.....also, tried using one of the free ones recommended by IRS and it completely bombed on my 40th stock sale.  Taxhawk imported my info from last years Taxact....hawk is good, I think they are doing the same as the otyherrs did..give it away for a while then see how much they can charge loyal customers.

Yes, credit karma (also a member for years) choked because I only have a Thai mobile (not US based) and a US-based VOIP (MagicJack) phone number, so not usable for me either.  Was able to establish a Taxhawk account so will try that one this year to see how it is.

 

[skatewash]

I did my 2016 taxes using TurboTax, TaxAct, and TaxHawk, to see which one I like best.  TaxHawk is out of the running as it doesn't support recharacterization of traditional IRA to Roth IRA conversions, something I do every year (and probably the only complicated thing in my return).  TurboTax and TaxAct are very similar (both support the recharacterization process).  Both were free for me this year.  TaxAct supported getting my long term extension (Oct 16) online, while TurboTax didn't.  I guess I will use TaxAct to file my return this year.  I'm sure things will change around for next year, but I suspect I will be choosing between TurboTax and TaxAct again.

[Jingthing]

I'm hooked on taxact but they've converted me to a paying customer. (Drats!) 

[TallGuyJohninBKK]

On 4/10/2017 at 4:06 PM, skatewash said:

Yes, I think the first extension level doesn't need to be applied for as long as you live outside the US (the one to June 15), while the longer extension (the one to October 16) needs to be applied for before the regular tax deadline (April 18).  My understanding is that as long as it is applied for (with a qualifying reason, such as living outside the US), it is routinely granted.  I know of no way to check that it has been granted, but you can check with the software you used to apply for it online (e.g., TaxAct) and it will tell you that the application has been "accepted by the IRS" which I take to be tantamount to being granted.  That is my understanding, anyway.

From everything I've read, if you're a legitimate expat meaning you've met the physical presence test, you're automatically entitled to the two extra months to file your return. If you also wait to pay any taxes owed until after the normal filing deadline but prior to the auto two month grace period, you won't be penalized for being late, but you will owe interest on the unpaid tax amount.

 

If you're filing a paper return, I've been told you should attach a cover sheet on the front stating that you're living full time outside the U.S. and thus claiming the automatic two month grace period. Obviously, you can't do that with an electronic return. I believe TurboTax support told me last year that even though my tax filing address is a U.S. one, my electronic return would have info in it telling the IRS that I'm living outside the U.S. and thus eligible for the two month grace period.. But I had to file a paper return for other reasons last year, so I didn't get a chance to test that advice.  How other tax prep packages treat that same issue, I can't say.

 

BTW, at least with the paid online version of TurboTax that I use, that version does support electronic filing of the longer/broader general extension of time to file form.

[TallGuyJohninBKK]

8 hours ago, skatewash said:

 TaxHawk is out of the running as it doesn't support recharacterization of traditional IRA to Roth IRA conversions, something I do every year (and probably the only complicated thing in my return). 

Skatewash,, if you don't mind me asking, is there some particular reason why you're re-characterizing IRA to Roth IRA conversions every year?

 

I know the reasons why a person would want to do a IRA to Roth conversion.  But I'm lost on why you'd want to do one every year and then pull it back.

 

BTW, if I recall correctly, starting last year, they changed the rules again to only allow one IRA to Roth conversion per taxpayer in any given tax year. Before that, a person could do multiple conversions from either multiple accounts or even from the same account.

 

 

 

[TallGuyJohninBKK]

BTW, several of the different larger U.S. credit unions usually also offer their members discounts on using the paid TurboTax online services. That's an ongoing thing I see every year. Usually it's $10 or $20 off TT's listed paid plan prices, depending on the plan you pick. But one of my credit unions has a bit better discount than the others, so when I log-in for the first time in a new tax year, I always make sure to go thru that particular credit union's online banking site and TT link, in order to get the best pricing on using TT's paid plan (which I need to use because of stock/dividend etc. details).

[TallGuyJohninBKK]

And in answer to the OP's original question, there used to be an American CPA in Bangkok who used to do the tax prep for a lot of Americans here. But he was getting older and in frail health, and retired from that work a few years back. Since that time, I haven't become aware of anyone in-country who we could recommend for doing a competent job at a fair price (the latter detail excluding dealing with any of the big U.S. accounting firms that may have offices here).

 

If anyone knows of anyone in country who's competent and does tax prep at fair/reasonable prices, I'd certainly like to know also -- even though I've gotten into the habit of doing my own the past several years using TurboTax, and am only slightly worse for wear for having done so.

 

OP, for every virgin, there's always going to be a first time.

 

BTW, OUTSIDE of country, there are a number of expat focused tax preparation firms that do tax returns for a fee after you submit your information to them online. But I've never dealt directly with any of them, so I can't speak to their service, other than that they exist.

 

[skatewash]

4 hours ago, TallGuyJohninBKK said:

Skatewash,, if you don't mind me asking, is there some particular reason why you're re-characterizing IRA to Roth IRA conversions every year?

 

I know the reasons why a person would want to do a IRA to Roth conversion.  But I'm lost on why you'd want to do one every year and then pull it back.

 

BTW, if I recall correctly, starting last year, they changed the rules again to only allow one IRA to Roth conversion per taxpayer in any given tax year. Before that, a person could do multiple conversions from either multiple accounts or even from the same account.

 

 

 

I'm converting the maximum amount of money from my traditional IRA to my Roth IRA every year that doesn't incur any taxes.  To do so, I execute a single conversion from two different asset classes in my traditional IRA account to two different Roth IRA accounts each holding one of those asset classes.  I calculate my taxes due at the beginning of the new year and recharacterize a portion of the conversion that will leave me owing zero taxes for the conversion.  I calculate a recharacterization amount from the worse performing asset class first, and from the better performing asset class second, until I have calculated the total recharacterization amount that will result in me not owing taxes for the year.  I then execute that single recharacterization.  The net result of all this is that I move money from my traditional IRA to my Roth IRA without owing any taxes on the conversion.  In effect, I end up keeping the best performing portion of the traditional IRA to Roth IRA conversion based on the asset class and undoing (recharacterizing) the worst performing portion of the traditional IRA to Roth IRA conversion.

The process of a so-called Roth IRA Conversion Ladder is much better explained here:  http://www.madfientist.com/traditional-ira-vs-roth-ira/  The process of doing so with two different asset classes, a "Roth IRA Horserace," is described here:  http://www.madfientist.com/roth-ira-horse-race/

[skatewash]

4 hours ago, TallGuyJohninBKK said:

 

BTW, if I recall correctly, starting last year, they changed the rules again to only allow one IRA to Roth conversion per taxpayer in any given tax year. Before that, a person could do multiple conversions from either multiple accounts or even from the same account.

 

 

 

Quote

 

Direct transfers of IRA money are not limited

This change won’t affect your ability to transfer funds from one IRA trustee directly to another, because this type of transfer isn’t a rollover (Revenue Ruling 78-406, 1978-2 C.B. 157). The one-rollover-per-year rule of Internal Revenue Code Section 408(d)(3)(B) applies only to rollovers.

 

https://www.irs.gov/retirement-plans/ira-one-rollover-per-year-rule

 

Quote

UPDATE: According to the IRS the one-IRA rollover per year rule doesn't apply to Roth conversions. The IRS specifically says “Rollovers from traditional to Roth IRAs (“conversions”) are not limited”.

http://www.goodfinancialcents.com/roth-ira-conversion-tax-rules/

[TallGuyJohninBKK]

5 hours ago, skatewash said:

I'm converting the maximum amount of money from my traditional IRA to my Roth IRA every year that doesn't incur any taxes.

Thanks for the explanation above. I'd never thought of taking that approach. But it does make sense. Going to look into pursuing that for the future! 

[TallGuyJohninBKK]

Anyone else out there been wrestling with the foreign exchange rate issue for your federal taxes.

 

I was dealing with that today, and unhappily started out being reminded that several of my Thai banks only allow 6 months past access to your account transaction history online, meaning back to October last year, at this point. Which really doesn't help when you're trying to tally interest payments for the 2016 calendar year.

 

And then I noticed the IRS has a webpage where they claim to list the yearly average exchange rates between the U.S. $ and the various foreign currencies for the years 2010 to 2016, at present. They're showing the 2016 average exchange rate for the THB at 36.778!!!   I wonder how they came up with that kind of rate, but it does serve as a benefit when doing your taxes, since the higher rate makes your baht interest equate to lower amounts in U.S. $ for tax purposes.

 

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

 

The Treasury Department's 2016 year-end report for currency exchange shows the THB rate at 35.7700, which seems a lot more realistic based on personal experience from the past year.

 

I also looked at the U.S. Federal Reserve bank's daily exchange rates site for the THB for 2016, and those rates barely got above 36 all year, except for a couple weeks in January where the highest daily number I saw was 36.33. That chart shows the rates ranging in the 35s most of the year, and dropping into the higher 34s at various points.

 

https://www.federalreserve.gov/releases/h10/hist/dat00_th.htm

 

But hey, if the IRS is suggesting I use their higher 2016 average rate for preparing my taxes, thus somewhat lowering the taxable value of THB interest payments, who am I to argue with that?