USA Taxes due while in OZ...??

[vbrown99]

The US is one of the few countries where it's citizens are on the hook for filing and paying income taxes while living abroad (I understand the only other country is Syria...).

Does anyone have a good CPA contact in Oz, who knows the US tax code in regards to US citizens living in Oz?

I don't wanna try to deal with an accountant here in the States when trying to file my tax return every year...

3 months, 22 days... but who's counting??

Thanks!

[amaslam]

I don't have an accountant but I went with H&R Block. Since they have a strong presence in both countries they can do the taxes just fine. They'll file for all the exemptions for foreign income and housing, or extensions that allow you to get more exemptions. Also your filing date is automatically extended to June 15th (instead of April) as you are outside the US, you may also file forms to extend the filing date past June 15th as well (I did one year when I filed sometime in September).

Originally Posted by vbrown99

The US is one of the few countries where it's citizens are on the hook for filing and paying income taxes while living abroad (I understand the only other country is Syria...).

Does anyone have a good CPA contact in Oz, who knows the US tax code in regards to US citizens living in Oz?

I don't wanna try to deal with an accountant here in the States when trying to file my tax return every year...

3 months, 22 days... but who's counting??

Thanks!

[interplanetjanet]

Amaslam, what are the fees for tax preparation here? Do they charge a percentage? Is it possible to have your taxes done here but the refund go into your US account?

[amaslam]

When I did it the one time (it's easier after the first year) they charged about AU$230. I'm fairly sure a CPA or global accountancy (i.e. PWC) would charge way more.

I don't think they charge a percentage, it's usually on a time basis (how long it took to prepare the return).

Should be no problem to get the refund put into your US bank account, as the return is still mailed and filed in the US, just your mailing address is overseas. I usually get my refunds deposited electronically like all my US returns (before or after moving out of the US).

Originally Posted by interplanetjanet

Amaslam, what are the fees for tax preparation here? Do they charge a percentage? Is it possible to have your taxes done here but the refund go into your US account?

[interplanetjanet]

Thanks!

I had a big argument with my husband last night about doing taxes. He doesn't think he should have to report his Australian income to the US at all (he's got PR). I tried to explain to him that a treaty means we won't get taxed twice, but he still thinks it's pointless. He just wants to be able to do his taxes himself and not have to pay someone.

[amaslam]

You can do it yourself. It's just that the first year has the fractional calculations based on the number of days in the US and number of days outside the US and they have to be applied to the deductions, exemptions, etc. , it's difficult to get it right if you haven't done them before.

After the first year it's much easier as you can refer to the previous year for the forms and you don't have fractional calculations.

Oh you both have to file and report all income (worldwide), once you're a PR or US Citizen of the US it's file taxes for life, and if your kids are PR or US Citizens they will also have to once they're adults (even if they've never lived in the US).

It's still pretty much 'honor system' but with the IRS you never know what data they have access to.

Originally Posted by interplanetjanet

Thanks!

I had a big argument with my husband last night about doing taxes. He doesn't think he should have to report his Australian income to the US at all (he's got PR). I tried to explain to him that a treaty means we won't get taxed twice, but he still thinks it's pointless. He just wants to be able to do his taxes himself and not have to pay someone.

[vbrown99]

H&R Block- great to hear. We've been using them online for the last few years with relative success.

As always, Thanks for the reply!

[matjones]

Originally Posted by vbrown99

H&R Block- great to hear. We've been using them online for the last few years with relative success.

As always, Thanks for the reply!

Glad to hear that too about HR Block, I've done my taxes online with them for many years. Glad they have AU offices.

[Bevdeforges]

Originally Posted by interplanetjanet

Thanks!

I had a big argument with my husband last night about doing taxes. He doesn't think he should have to report his Australian income to the US at all (he's got PR). I tried to explain to him that a treaty means we won't get taxed twice, but he still thinks it's pointless. He just wants to be able to do his taxes himself and not have to pay someone.

FWIW, lots of folks think the same way your husband does. However the laws in the US trump "common sense."

The IRS has been known to share tax information with the tax authorities in countries with which the US has its tax treaties. You don't hear about it too often, but I'm told that they often check past tax returns for those recently deceased overseas - which can lead to seizure of various assets destined for the heirs.

The other risk you run by not declaring foreign income is that the statute of limitations doesn't start running until you have declared the income. So, if you declare it and "get away with" your tax treatment (excluding or taking deductions against, for example) you're home free after 4 years - or whatever the current statute is on taxes. If you don't declare it, they can re-open your case 10 or 20 years down the road based on undeclared income.
Cheers,
Bev