{"id":4565,"date":"2022-02-02T23:06:46","date_gmt":"2022-02-03T06:06:46","guid":{"rendered":"https:\/\/modernfimily.com\/?p=4565"},"modified":"2022-02-03T11:36:18","modified_gmt":"2022-02-03T18:36:18","slug":"expatfile","status":"publish","type":"post","link":"https:\/\/modernfimily.com\/expatfile\/","title":{"rendered":"Expatfile: My Favourite US Expat Tax Filing Software"},"content":{"rendered":"

It’s now been a few years since moving away from the US and calling Canada home.\u00a0 And let me tell you the worst thing about it.<\/p>\n

The IRS.<\/p>\n

Damn Uncle Sam gives me so much anxiety when it comes to residing abroad.\u00a0 There are so many headaches a US expat has to be aware of when it comes to investing abroad.\u00a0 But the most annoying thing is that the US taxes based off citizenship, not residency.<\/p>\n

Oh suck it up they say.\u00a0 That’s what you get for leaving the country.\u00a0 Everyone who moves away has to do this.<\/p>\n

Everyone?\u00a0 No.<\/p>\n

There are literally two countries in the entire world who tax based on citizenship.\u00a0 TWO!\u00a0<\/strong> The US and Eritrea.<\/p>\n

Call me crazy, but the IRS is out to lunch.\u00a0 They think we are all money launders trying to come up with some tax avoidance scheme.\u00a0 Rather than try to target those people who are actually doing this (or hmm… maybe change the tax structure so people\/corporations don’t feel compelled to do such a thing?!) they just make us all suffer.<\/p>\n

And anyone who is a US expat knows exactly what I’m talking about.<\/p>\n

Here in Canada, the marginal tax rates are higher compared to the US so every single time I’ve filed, I’ve owed the US a whopping $0.\u00a0 But I still have to fill.\u00a0 Every.\u00a0 Single.\u00a0 Year.<\/p>\n

Can you tell I am\u00a0so<\/strong> over it?!<\/p>\n

Breaking Up With Turbo Tax<\/h2>\n

Up until 2021 I had been using Turbo Tax to file my US taxes each year.\u00a0 And every year, there would be some sort of massive headache involved.<\/p>\n

Note that Turbo Tax for US residents is great.\u00a0 It’s like SimpleTax in Canada where if you have a pretty standard filing, you can be done within a few hours.\u00a0 But for those of us abroad, it is NOT built for us. I’d slowly chip away at it for 1-3 hours each night once the kiddo was asleep trying – begging – pleading for it to work.<\/p>\n

For example, last year when clocking in hour 26 (more likely hour 40) on Turbo Tax it asked if I had any property tax from a rental outside of the US to report.\u00a0 Yes, we have a rental now on our townhouse up here.\u00a0 Well Turbo Tax did NOT like this and kept saying that my property taxes outside the US cannot exceed my property taxes from the US.\u00a0 I don’t have any property taxes in the US!!<\/p>\n

The online support questions and answers are pretty useless to help move on and I never felt compelled to pay extra for the online support as again the platform is not built for expats.\u00a0 Let’s just say I always feel so defeated in April and I swear I’m going to renounce my citizenship each year.<\/p>\n

During that frustration I was ready to give up and start from scratch.\u00a0 I was doing a Google search trying to find a good tax filing website for US expats living abroad.<\/p>\n

And that’s when I found my personal savior (ok that’s a bit strong but you know what I mean).<\/p>\n

Not All Hope Is Lost<\/h2>\n

Oh Expatfile<\/a>. Thank you for entering my life. As long time readers know, I only promote things that I personally use and enjoy.\u00a0 And Expatfile is definitely one of those services.<\/p>\n

Expatfile is a relatively new website (I think it started in 2019?) but it’s software is built around you, a US expat.\u00a0 Turbo Tax is definitely not.\u00a0 Each year they are continuing to enhance it’s features to make it more and more user friendly (this year they recently added a way for you to auto-populate your information from last year to make filing even easier if you had relatively minor changes to make year over year).<\/p>\n

Form 1116 (Foreign Tax Credit)? Check<\/p>\n

Form 2555 (Foreign Earned Income Inclusion)? Check<\/p>\n

FBAR Instructions? Check<\/p>\n

See the screen shot below for their pricing and coverage (and for anyone finding this post later on, check their website<\/a> for current pricing):<\/p>\n

\"\"<\/p>\n

I literally cannot tell you how much easier it was to file with this software.\u00a0 I had one question which their online chat feature (with a CPA available real time – NOT A BOT!!) was super helpful with.\u00a0 I was done the same day I started (granted I was very in tune with tax return numbers at this point thanks to all the hours put in with turbo tax!).\u00a0 What?! I honestly could not believe it and refused to file that day as I swear I thought I missed something because it was too easy in comparison.<\/p>\n

Now, of course Expatfile is not the only tax filing software out there to help US expats.\u00a0 So please do your research and find the one that’s right for you.\u00a0 But I can say from personal experience, I was very pleased<\/strong> with Expatfile and plan to continue using them.<\/p>\n

You can also check out Trustpilot which has over 760 reviews for Expatfile<\/a>. At the time of this writing, they have 4.9 out of 5 stars based off all of these reviews.\u00a0 If you are considering using them, please read through this as I cannot stress how helpful this switch has been for me and hopefully any questions\/concerns you have can be found in a review that someone else has written.<\/p>\n

Save $20!<\/h2>\n

I’ve been working with the Expatfile team for a little while now trying to get a promo code for anyone here looking to use them.\u00a0 I’m excited to announce if you use the promo code “MODERNFIMILY” (all caps, no spaces)<\/strong> you will receive $20 off your filing!\u00a0 So if you were planning to use the $99 plan it’s now only $79. Again, here’s the link to their site<\/a> to get started.<\/p>\n

Note that they occasionally have promos going so if you see something for more than $20 of course use that one instead!\u00a0 Some of those have deadlines that you must file by to get that specific promo.\u00a0 But here’s an instant way to get $20 off with no strings attached.<\/p>\n

The IRS has started accepting e-filings for 2021 returns as of January 24th, so happy tax season y’all! \ud83d\ude42 \ud83d\ude41<\/p>\n

And please, if you do end up using them I would love to hear from you!\u00a0 Please leave a comment below letting me know if you found it easy to use as well.\u00a0 \u00a0I am so glad my days with Turbo Tax are over \ud83d\ude42<\/p>\n

Lastly, this is a friendly reminder for any US\/Canadians out there to be aware of also filling out the FBAR<\/a> with the IRA and Form T1135<\/a> with the CRA.<\/p>\n

Support This Blog<\/b><\/h2>\n

If you liked this article and want more content like this, please support this blog by sharing it.\u00a0 Not only does it help spread the FIRE, but it lets me know what content you find beneficial.\u00a0 Writing is NOT my strong suit and it honestly takes me hours to write each post so the more encouragement the better!\u00a0 Engaging in the comments below keeps me motivated.\u00a0 You can also support this blog by subscribing to receive emails anytime a new post is published.\u00a0 Thank you FImily!<\/p>\n

We believe in stacking up life hacks to keep your enjoyment levels to the max without depleting your bank account.\u00a0 Here are some ways to further educate yourself and save thousands of dollars over your lifetime by making some simple adjustments:<\/p>\n