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).

 

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?

 

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).

 

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.

 

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.

 

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.

 

I have been doing my taxes on hr block online in the US for years. I am moving to Australia. Will I be able to file the same way? Will they be able to direct deposit into an Australian account or does it have to be a US account?

 

Um, the answer is a firm "maybe." If you're using the HR Block freebie e-file service, you'll have to see if you qualify from overseas. Some of the free file sites will only allow filers from specific states (and usually that means you have to pay to file the state return). Since you have no state return to file once you're resident overseas, that could pose a problem. Other sites that say you can file from a foreign address put age limitations on. List of free file sites. (If this link doesn't work for you, go to the IRS website (www.irs.gov) and click on the "free file" logo on the right side of the page.

If you're paying to e-file, you should check with Block. Usually there's no real problem, but it's a matter of their company policy more than anything else.

You won't be able to direct deposit any refund in an Australian account, though. Probably a good idea to keep one US account open - both to make tax payments (has to be US $) and to receive any refunds you may be due.
Cheers,
Bev

 

It may be good to check with the American Consulate in Oz as they would have info on taxes and accountants. The US is not one of the only countries who require citizens to file while living abroad - many do, which is why most countries have agreements that allow for foreign earned income exemptions. It's all pretty easy - have always done by own taxes. There are just some extra forms to fill in, and you won't end up paying taxes to the US if you don't live and earn there.

 

Glad to see this post

I've been wondering how to go about filing abroad... glad to see this post, tks!

One weird thing for us is that I'm from the US, my husband is not (he's a UK citizen). So although we file as married-filing-together now (while we're state-side), I think for 2012 taxes we may have to file separately (because he would only have to declare his US income up until we leave the US... where I have to declare my US income and my income from Oz).

We're nothing if not complicated.

 

I've been wondering how to go about filing abroad... glad to see this post, tks!

One weird thing for us is that I'm from the US, my husband is not (he's a UK citizen). So although we file as married-filing-together now (while we're state-side), I think for 2012 taxes we may have to file separately (because he would only have to declare his US income up until we leave the US... where I have to declare my US income and my income from Oz).

We're nothing if not complicated.

Does your husband have, or has he ever had, a green card (not really green - they used to be)???

The answer goes to his filing.

 

In 2014 with the implementation of the FAT-CAT, I mean FATCA, they'll start looking into your overseas bank accounts to see if you're in compliance :juggle:

Foreign Account Tax Compliance Act - Wikipedia, the free encyclopedia