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Topic: Using TurboTax or similar  (Read 3308 times)

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Using TurboTax or similar
« on: December 17, 2018, 03:27:53 PM »
I have used TurboTax to file my US taxes since 1994 and continued to use it after we moved to England in 2016. However I am finding it increasingly difficult to purchase and was wondering what others do. Our taxes are reasonably complicated with UK and US pensions, Roth conversions, capital gains and stock dividends, plus forms 1116 to get foreign tax credits for the taxes paid to HMRC, so I have been averse to looking at alternatives since I know TurboTax so well, and it deals with residents living abroad.

Last year when I tried to buy it either direct from Intuit or through Amazon.com it blocked me, recognizing that I also have an account with Amazon.co.uk, saying that the product is not for sale in your region. (I do have a US credit card, US address and US bank account linked to my Amazon.com account). I managed to buy it by using my wife's Amazon.com account as she does not have an Amazon.co.uk account. 

I have just been through the same process today and wondered how others did their taxes. Do you use a software product like Turbotax? My backup plan would have been to either buy a copy while visiting our daughter in LA in March, or to get her to buy a copy and ship it to us, or look for another product I can buy in England.
Dual USC/UKC living in the UK since May 2016


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Re: Using TurboTax or similar
« Reply #1 on: December 17, 2018, 03:39:29 PM »
I've just continued using TurboTax. I don't buy a copy though.....just use the online version. You can keep changing it as you go along so you don't get stuck with what you put in......and can save it and come back later for more changes. Your taxes are a lot more complicated than mine.
Fred


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Re: Using TurboTax or similar
« Reply #2 on: December 17, 2018, 06:26:46 PM »
I've just continued using TurboTax. I don't buy a copy though.....just use the online version. You can keep changing it as you go along so you don't get stuck with what you put in......and can save it and come back later for more changes. Your taxes are a lot more complicated than mine.

That is really good to know,  I’m sure the online version will be sufficient for my needs. I will continue to buy the downloaded version while I can because that allows up to 5 returns to be filed and I always let my son use my version to file his taxes. We used it this year to file his 2017 taxes which was interesting as he moved back permanently to England in September that year and got a job here shortly after. TurboTax guided us nicely through it.

The downloaded version also allows you to see all the forms as you go along, switching between form view and step by step, and I like that flexibility as I do plenty of test runs during the year mainly to see the tax hit on Roth conversions. 2021 should be the last year that I do a lump sum Roth conversion if all goes to plan.
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Re: Using TurboTax or similar
« Reply #3 on: December 17, 2018, 07:58:47 PM »
For those who have used TT in the past, be aware the tax forms are different this year. Currently, it appears only a shortened version of 1040 will be used. 1040A/1040EZ will disappear and there are an additional 6 schedules.

It appears that what has been eliminated from the 1040 moves to those 6 schedules.

Overall, there should be no complications for the 'foreign' filer. 1116 (Foreign Tax Credit) appears to feed through Schedule 3, although it is unclear where 2555 (FEIE) will land - maybe the 1040 or more likely Schedule 3 also. Nonetheless, it should offer no complications.

TT has had a reputation, for those with substantial foreign income, of requiring an adjustment period before it gets everything correct, so check the return carefully before submitting. They have been more reliable lately, so hopefully all will go smoothly.


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Re: Using TurboTax or similar
« Reply #4 on: December 17, 2018, 08:13:27 PM »
I've always used Tax Act and found it easy, but I do print it out and mail it because I'm self employed and have to write in a couple of exempts on my 1040 along with the certificate saying I'm exempt from paying US SE tax


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Re: Using TurboTax or similar
« Reply #5 on: December 17, 2018, 10:08:18 PM »
I've always used Tax Act and found it easy, but I do print it out and mail it because I'm self employed and have to write in a couple of exempts on my 1040 along with the certificate saying I'm exempt from paying US SE tax

Sounds good. And you can buy and download the software from the UK?
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Re: Using TurboTax or similar
« Reply #6 on: December 18, 2018, 12:52:10 PM »
I use H & R Block download. The De Luxe version includes Form 8938. I am US resident so I do not know if it is available in the UK or if it accepts UK addresses. I have found it to be easy to use.


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Re: Using TurboTax or similar
« Reply #7 on: December 18, 2018, 02:49:56 PM »
I use TaxAct's online version.  It's okay.  (Not as friendly as Turbo Tax,but does the same trick)
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Re: Using TurboTax or similar
« Reply #8 on: December 18, 2018, 03:02:13 PM »
Sounds good. And you can buy and download the software from the UK?
I do pay for it with my US credit card and US billing address (my son's), but haven't had a problem using it from the UK.


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Re: Using TurboTax or similar
« Reply #9 on: December 18, 2018, 03:14:13 PM »
Thanks for all the replies folks, very reassuring.
Dual USC/UKC living in the UK since May 2016


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Re: Using TurboTax or similar
« Reply #10 on: February 18, 2019, 05:40:58 PM »
durhamlad, very similar situation here.

2017 tax year was my first in the UK and I ran into the same problems as you. I ended up ordering a TurboTax DVD from Amazon.com, using a credit card from a US bank (Bank of America), and having  the disc delivered to me in the UK. Interestingly, the address on my credit card account was my UK home, and Amazon didn't object to sending the item here -- though they wouldn't let me download instead.  ??? Once I installed the software from the DVD, I had no problem installing updates over the Internet and then filing my return online.

I've recently started the same process for the 2018 tax year, so fingers crossed ....


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Re: Using TurboTax or similar
« Reply #11 on: February 18, 2019, 06:43:35 PM »
durhamlad, very similar situation here.

2017 tax year was my first in the UK and I ran into the same problems as you. I ended up ordering a TurboTax DVD from Amazon.com, using a credit card from a US bank (Bank of America), and having  the disc delivered to me in the UK. Interestingly, the address on my credit card account was my UK home, and Amazon didn't object to sending the item here -- though they wouldn't let me download instead.  ??? Once I installed the software from the DVD, I had no problem installing updates over the Internet and then filing my return online.

I've recently started the same process for the 2018 tax year, so fingers crossed ....

Good to hear that option is available. If I hadn’t managed to get it myself I was going to ask my daughter in the USA to buy it and send it over.
Dual USC/UKC living in the UK since May 2016


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Re: Using TurboTax or similar
« Reply #12 on: February 19, 2019, 09:39:12 AM »
I would have your daughter send it, as she can mark it as a gift. Otherwise, you run the risk of paying VAT and the onerous Royal Mail £8 for the privilege of collecting your money and handing over the package.

Anything with a value over £15 attracts duty, and to my horror, I found that included the shipping charges. I know that Amazon estimates customs duties, but you could still have the Royal Mail charge to pay.
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Re: Using TurboTax or similar
« Reply #13 on: February 19, 2019, 10:58:39 AM »
Trivia: Even if the VAT is applied in error, and you successfully challenge it, you won't get your £8 "handling" charge back. So definitely having someone send it as "gift" might be better, if you can do it. Here are the regs, for reference:


You pay VAT on goods sent from non-European Union (EU) countries and EU special territories (eg the Canary Islands) if they’re:

    gifts worth more than £39
    other goods worth more than £15
    alcohol, tobacco products and fragrances (eg perfume, eau de toilette and cologne) of any value

You have to pay VAT on all goods sent by mail order from the Channel Islands no matter what their value.

You’ll be charged at the VAT rate that applies to your goods. VAT is charged on the total value, including:

    the price paid for the goods
    postage, packaging and insurance
    any duty you owe


Customs Duty

You’ll be charged Customs Duty on gifts and other goods sent from outside the EU if they’re above a certain value.

The value includes:

    the price paid for the goods
    postage, packaging and insurance

Type and value of goods    Customs Duty
Anything under £135    No charge
Gifts worth £135-£630    2.5%, but rates are lower for some goods - call the helpline
Gifts above £630 and other goods above £135    The rate depends on the type of goods and where they came from - call the helpline


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Re: Using TurboTax or similar
« Reply #14 on: February 19, 2019, 11:05:26 AM »
So, questions on TurboTax: Earlier this year I tried to do my rather simple taxes on TurboTax. Because US Social Security is not taxable in the USA for USC residents of the UK, you have to list it but then have it listed as non-taxable (line 5a of the 1040 form). I was not able to get TT to do that.

I was also booted from the "free" version to a "paid" version because I had student loan debt payments (schedule 1) to report.

I'd really rather prefer to file electronically, as mail has a tendency to go AWOL; however, if I can't properly exempt my SS payments it's pointless to use TT.  Has anyone found a work-around on that?


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