Recommended Tax Preparers

Can anyone recommended some good Tax preparers?  I have past return to file and would love to hear who you guys use. 

Thanks...

I'm an idiot on the topic.....but this is one that nun had put on another site and said it worked OK. I have contacted TowerTax yesterday....still waiting to hear back from them. I have NO IDEA who would be a good contact. Guess you could do a Google search....but I would rather have somebody tell me they have used someone and they worked out OK.

http://www.towertax.com/

I contacted this firm about 3 years ago. I was surprised that they didn't seem to know some basics about foreign pensions (eg, paying UK tax on contributions to a UK pension (and taking a FTC) in order to establish a basis for purposes of US tax) so I didn't take it any further. But that could have been just the person I was in contact with.

I contacted this firm about 3 years ago. I was surprised that they didn't seem to know some basics about foreign pensions (eg, paying UK tax on contributions to a UK pension (and taking a FTC) in order to establish a basis for purposes of US tax) so I didn't take it any further. But that could have been just the person I was in contact with.

I talked to the Principal at Tower Tax and she did a nice analysis of my tax situation if I moved back to the UK. But Marty's post just shows how you have to go into these relationships with some knowledge so you can ask appropriate questions and evaluate the work being done.

other companies you might try are. The first two are run by people who are as conversant with UK tax as with US tax and sometimes post on here

http://www.britishamericantax.com
http://www.americantaxreturns.com
http://www.taxesforexpats.com
http://www.greenbacktaxservices.com/
http://www.taxbarron.com/

Many people do it themselves. Why? For one thing, even if you use a pro, you will have to spend a lot of time digging out the relevant information and learning about US tax laws so you can make an informed decision. So it's not as if you can just pay someone to do it and forget about it. It's going to cost you a significant amount of time and effort anyway.

If you use one of the cheaper outfits - usually US-based, you will have to provide them with all the relevant information. They will enter the number into their tax software and send you back your forms. You might get a little a bit of interaction and question/answer but don't expect too much. They won't know much about UK tax law so you will have to worry about whether what they do is UK compatible. So for a few hundred dollars, you won't get much. May as well enter those numbers yourself.

You can go to a UK-based preparer - this will cost you significantly more. There are at least 100,000 of us with this unpleasant US person financial problem here in the UK and not many businesses catering to us. You will likely get a UK-compatible solution but again you will need to do a lot of work yourself. Paying out a four figure amount just so you can likely owe zero to the US treasury is hard to justify if it represents a significant proportion of your income.
 

Years ago I had an accountant do my taxes in the US. I was newly self-employed, and concerned that I wouldn't do everything correctly. What I learned was, I could have done a better job.....my accountant was NOT as up on things as she should have been, because she had focused on corporate returns, not Schedule C folks like me.

Another CPA friend told me it was NOT worth hiring a professional for a simple return, and that mine was really simple. I started doing my own taxes then and never looked back.

I think many folks who need to file returns or past years thin a professional is the only way to go. BUT - if it's a simple return, and you have a reasonable tolerance for paperwork, why pay for what you can do yourself.

Look at your situation, and ask yourself how complicated is it. If you are doing a lot of work yourself as Weller says, you might as well enter those numbers yourself.

Just sent this message off to TowerTax. See below. If anybody else here could answer these questions.....please have a go at it.
----------------------------------------------------------------------

Thanks for replying,

We are just in the beginning stages of planning for a return to the UK. From what I am learning from other people on internet forums, we should be able to do the taxes ourselves once I figure out how to set ourselves up....and.....whether the likely increase in taxes might be more than we can afford.

I am a US citizen and my wife is a UK citizen with green card for the US at this time. If the rules haven't changed, she was going to go for US citizenship next summer after we have been in the US for 3 years. At that time we need to make a decision on whether we stay here or plan a return to the UK around 2016. If we do make the call to go back to the UK it would likely be for good, which would of course include all the things I would need to do to move to and remain in the UK.

Present income
-$1,289 ($962 take home) gross monthly from US Govt pension
-Currently waiting on a annuity supplement to start when I took early retirement. Should be $700-800 a month from age 56 to 62 when I am eligible for Social Security.

Future income
-Above US pension continues. Pension will not get COLA until I hit 62 (2019)
-Social Security starts in 2019 if I choose to take it at 62. Approx $1,350 a month at the latest estimate, but has been going down since I retired.
-Wife "should" get a 50% spousal Social Security amount. She would if she stayed in the US even without citizenship.
-Wife gets small private pension with Standard Life estimated at 1200 Pounds yearly at age 60 (2020)
-Wife gets small local Govt pension of an estimated 1988 Pounds yearly before taxes at age 65 (2025)
-Wife gets State pension of approx 121 Pounds weekly (6,292 Pounds yearly) at age 67 (2027)

Current savings
-Approx $350,000 in Vanguard mutual funds + money market
-Approx $444,000 in my Govt work IRA type fund (TSP -Thrift Savings Program). Taxes not paid on this money until it is taken out.
-Current house we own here worth approx $230,000 which we sell upon leaving.
-$40,000 cash (enough to get us 2 more years here)
-Wife has a small checking account in the UK so she can send her kids money for birthdays etc.....Less than 1,000 Pounds.

I can't really answer the capital gains question, we haven't been tapping either our Vanguard or TSP money at this time and shouldn't for another 2 years.

Some of the points being made in a online forum is whether I should be moving some of my TSP money over to a Roth and paying the taxes on that now while I am in a low tax bracket. Evidently the UK won't tax that if it is in a Roth, but "might" if I remove it while living in the UK and paying taxes in the US on it at that time.

Questions we need answered (and likely a bunch I don't know yet to ask)
1. Will my (and wife's) Social Security be taxed in the UK when I start receiving it?
2. Will my pension from the US Govt be taxed by the UK?
3. When I eventually sell parts of the Vanguard funds, will I be taxed (on the capital gains) in the UK? I likely won't be in the US since my tax bracket is low.
4. When removing my money from my Govt retirement fund (TSP) will have to pay tax in the US as well as in the UK?
5. How does the Personal Tax Allowance (9,440 Pounds at this time) affect us?
6. If the UK will tax my US Govt retirement savings TSP money after moving, would I avoid paying UK taxes if I move that money to a Roth and pay the taxes now?

There are likely a few other questions I can't come up with at this time. Compared to other people I have discussed things with online.....our finances are fairly simple. We just need to know how things will affect us if we decide to move back to the UK.

Questions we need answered (and likely a bunch I don't know yet to ask)
1. Will my (and wife's) Social Security be taxed in the UK when I start receiving it?
2. Will my pension from the US Govt be taxed by the UK?
3. When I eventually sell parts of the Vanguard funds, will I be taxed (on the capital gains) in the UK? I likely won't be in the US since my tax bracket is low.
4. When removing my money from my Govt retirement fund (TSP) will have to pay tax in the US as well as in the UK?
5. How does the Personal Tax Allowance (9,440 Pounds at this time) affect us?
6. If the UK will tax my US Govt retirement savings TSP money after moving, would I avoid paying UK taxes if I move that money to a Roth and pay the taxes now?

There are likely a few other questions I can't come up with at this time. Compared to other people I have discussed things with online.....our finances are fairly simple. We just need to know how things will affect us if we decide to move back to the UK.

First off I'd be careful sharing your finances on an open forum.

Your questions are relatively straight forward.

1) US SS paid to UK residents is only taxable in the UK.
2) If you do not become a UK citizen then your US Govt pension will only be taxable in the US.
3) If you are taxed on an arising basis in the UK your US capital gains will be taxable in the UK and the US. But it sounds as if your low level of income means that you get the 0% capital gains tax in the US and in the UK you will get a capital gains tax free allowance of 10900 pounds.
4) see answer to 2)
5) The Personal Allowance will simply reduce your taxable income if you become UK resident. It's like the US personal exemption and standard deduction.
6) see answer 2). The UK does not tax pensions, IRAs, 401a etc from US Govt sources (includes federal, states, municipalities etc) that are paid to non-UK citizens resident in the UK.

First off I'd be careful sharing your finances on an open forum. Agreed....the thought went through my head.....can't figure out how anybody would get anything usable out of what I wrote.

Your questions are relatively straight forward.

1) US SS paid to UK residents is only taxable in the UK.
So mine is fine....as I thought....if wife would get the 50% spousal she would get zapped in the UK.
2) If you do not become a UK citizen then your US Govt pension will only be taxable in the US.
Who knows, if there is good reason to go dual (as there is with my wife getting US citizenship) I am fine with doing it (like lower car insurance etc etc).....if not I am likely too lazy to do it.
3) If you are taxed on an arising basis in the UK your US capital gains will be taxable in the UK and the US. But it sounds as if your low level of income means that you get the 0% capital gains tax in the US and in the UK you will get a capital gains tax free allowance of 10900 pounds.
Can't see needing to sell off so much TSP or Vanguard funds (in any year) that my capital gain would be anywhere near the 10,900 P limit.
4) see answer to 2)
So there would be no good reason to move TSP money over to a Roth? Unless I eventually went dual....
5) The Personal Allowance will simply reduce your taxable income if you become UK resident. It's like the US personal exemption and standard deduction.
So not likely to hit us either if my incoming US money isn't taken into consideration.....and wife's pensions don't add up to the 10,900. Even if she went slightly over.....wouldn't be enough to really matter.
6) see answer 2). The UK does not tax pensions, IRAs, 401a etc from US Govt sources (includes federal, states, municipalities etc) that are paid to non-UK citizens resident in the UK.
Again....if this is the way it is.....guess it makes as much sense as anything to leave the TSP money where it is if there is no advantage (in my case) to moving it to a Roth.

Thanks for the info.....starting to look more and more that I don't really need to do anything special if we do make the move back. We live within our limits.

The two messages I got back from TowerTax I have pasted down below. Anybody have a comment? I was kind of thinking I had things straight in my head yesterday...

------------------------------------------------------------

I could provide you with advice on the questions you have posed at this stage plus give you some general advice on filing in both the UK and the US at a cost of £200 which represents one hour's work if you would like to confirm that I should go ahead with this.  I have to say that filing in both the UK and the US, with social security, pensions and US and UK investment income is NEVER straightforward, in fact, these are the most complex tax returns that I have to deal with because of the interaction of the UK/US double tax treaty with foreign tax credits, including on resourced income, that is to say, US source income that can be regarded as non-US for foreign tax credit purposes.
---------------------------------------------------------------

You need to be very careful about what you take from internet forums where US and UK tax are concerned.  As a US Citizen and UK resident, you will be subject to both US and UK tax on your worldwide income, subject to any exemptions available under the US/UK double tax treaty, foreign tax credits (on both UK and resourced US income and capital gains) and the special rules for non-UK domiciliaries under UK tax law.  I really think you would benefit from having me prepare the advice mentioned in my last email.  Typically, I find that individuals in your type of situation have a lot of pre-conceived ideas that they ultimately find to be incorrect.

... I really think you would benefit from having me prepare the advice mentioned in my last email.  Typically, I find that individuals in your type of situation have a lot of pre-conceived ideas that they ultimately find to be incorrect.

My gut says that it totally makes sense for her to say that- if she didn't convince you to let her do her taxes, she'd be out a customer.     And she's not likely to share her wisdom without getting paid. 

As you've already seen, people on this forum are good for giving advice.    And they're in the same boat as you so they can relate to you.    Of course, it's up to you to research, but once you figure it out, you figure it out.    Unless your situation changes (or tax laws change), you only need to do the leg work once and then do the math right for following years. 

I think you should first decide whether you can handle your finances first and then go to tax professional if you really think they're too complicated.  You won't get anything but scare stories asking them for advice on whether to do your own or have them do it. 

Just my 2p.    Make a decision first.... then ask for advice from people wanting your money.   

As you said yesterday:

Thanks for the info.....starting to look more and more that I don't really need to do anything special if we do make the move back.

I spoke with Tim at American UK Tax Advisors (recommended by the US Embassy).  He spoke to me for about 30 minutes (no charge) about my personal circumstances and gave loads of great advice.  I plan to use him for my next return and go from there (potentially use it as a template for future returns or just continue with him).  I would recommend reaching out to him.  He's UK but married to an American and has first hand experience and knowledge on everything from taxes to investments. 

http://americanuktaxsolutions.com/

The two messages I got back from TowerTax I have pasted down below. Anybody have a comment?

I may not win many friends with this comment, but I agree in principle with every thing said in the two Emails.

"...at a cost of £200 which represents one hour's work..."
I've had quotes higher than this per hour, so not bad.

"You need to be very careful about what you take from internet forums where US and UK tax are concerned."
Agreed, we've even witnessed the occasional professional advisers getting things wrong.

You and I had a discussion on another site recently, and I'll repeat what I said there. Research, research, and then do some more research. If you're confident of your position, give it a shot. If not, seek help.

We also discussed several months ago the fact that if your wife is a UK citizen resident in the UK, she is entitled to SSA spouse benefits without being a USC. Several addresses were given at that time. Have you researched this yet? 

I may not win many friends with this comment, but I agree in principle with every thing said in the two Emails.

Not sure why you would say this.....I have no issue with what was sent by TowerTax either. I just put it out to see what other people thought of it and to see if someone had something that I hadn't thought of. People are going to see it both ways....neither are right or wrong.

"...at a cost of £200 which represents one hour's work..."
I've had quotes higher than this per hour, so not bad.

I have no big issues with this price either....other than the fact that she already likely knows the answer and is just charging a standard fee....hey, ya gotta make money and I don't consider this extravagant.

You and I had a discussion on another site recently, and I'll repeat what I said there. Research, research, and then do some more research. If you're confident of your position, give it a shot. If not, seek help.

I am slowly learning more and more. But one thing I am confident about.....and that's that very few people are confident/expert in this area.

We also discussed several months ago the fact that if your wife is a UK citizen resident in the UK, she is entitled to SSA spouse benefits without being a USC. Several addresses were given at that time. Have you researched this yet? 

OAP- Your memory is much much better than mine. I don't remember this, was it on the ER site? (I will search there to see). We did go down to the SS office about a month ago.....got in line, but it was going to take at least a couple of hours to be seen and we weren't in THAT big of a hurry. As I have stated several times in different posts....we need this information eventually....no BIG hurry. We have until this time next year before we need to make a decision. I was worried a bit about possibly doing a Roth conversion of the TSP, but that looks like it doesn't have to happen now (but I do need to confirm to make sure). One thing I have seen though......my wife seems to be eligible for SS even if she doesn't get citizenship.....both here, or if we decide to go back. Yet....there seems to be a requirement as well that she would need to be in this country for at least 5 years before she was eligible. Guess I could have mixed that up with a requirement for something else....

[/color]

I may not win many friends with this comment, but I agree in principle with every thing said in the two Emails.

+1. There's no shortage of advice on this forum, but we aren't doing your taxes and in the real world a professional can help you sleep at night.

I'd get a number of quotes before I hired a professional. They should be able to take your details and give you a quote for filing US and UK taxes before you proceed. So call up the firms mentioned in this thread, and any others you can think of, and see which one gives you the best combination of price and confidence. If you can follow the returns easily you can use them as templates to do then yourself in the future. But remember tax law is a changing an evolving beast so you have to keep up to date.