E-filing from UK: my new hope

Just thought I would update here is if helps anyone in a similar predicament.

As I file things like 1116AMT, form 8833, among other things, do not have a US bank, US address, US telephone, etc, I have struggled to find a service to e-file with. Traditionally I have used paper filing but last year had a bad experience where a form was "damaged" (on scanning?) and I never found out until I rung up to see where the refund was. For me, e-filing is much preferable.

I signed up to TaxAct initially with high hopes, I realise they may still need to update things for 2021 filing but they are still US-centric (US cell number ideally required, US address for billing, US telephone number to access their TaxAssist help, etc). Also, frankly I believe they are getting things wrong which could impact me and should be something that is not subject to an update (e.g. self-employed saying I can apply the Qualified Business Income deduction even though I am 95% certain I cannot as the business was 100% out of the US; charging social security on self-employment when I am exempt, etc). Also, I have personally found TaxAct's customer service really unhelpful here when I have tried to get answers and help.

I then looked at free-file fillable forms, as I am comfortable filling in the info myself. However, it flat out states it has no ability to do 1116AMT so that is a non-starter.

HOWEVER, now I have found H&R block for expats. It appears to be specifically for expats:
https://expatonline.hrblock.com/wizard/introduction/2021
I signed up, and could use a UK mobile number which I successfully got a text from to authenticate. I answered all the questions for free to get all the info in - could deal with UK pensions, it asked me about where self-employed income was (leading me to believe it is accounting for things like if QBI deduction is suitable or not), it warned of specifics like this may be considered a Foreign Branch so I "might" want to consider filing form 3XXX (forget what it is) - again, all giving me confidence that they are properly thinking about the issues expats face rather than being so US-centric as others are.

Another area they had a section on was carryover for form 1116 - you could add each year up to 9 yrs previous your carryover in unused tax credits and which category income it applied to. I've not seen another program do or offer this. They also let you choose whether you want to use the IRS end of year exchange rate for your country, or use your own. You can put all your money across all questions in GBP/local currency, and seemingly they will do the calculations for you based on selecting the end of year average rate (which they state and matches up with my records) or whatever you put in. Another positive.

I got through all the info but then had to pay to get to the forms. Here is a downside - no calculations included but in their defence they state not all the forms have been released by the IRS yet for expat filing and so likely will be end of Jan when they will email to say. I emailed their customer service to ask if I can fill 8833 and they said yes, there is a DIY section after you get to the review where I will be able to do this (and other forms if needed).

The other downside is the cost. As I am filing MFJ and my wife is self-employed, I have to go down this option so it is $149. However, I am feeling 10x more confident about this being successful than TaxAct or any other option I have encountered. Also, they easily took payment from a UK based address with no issue. No filling in wrong info to get it to take the payment, etc.

Next step is to see what happens when all forms are released and I then can go in and fill out 8833 and see what they have calculated and if they have applied what I believe to be the right criteria. However, given their very quick and efficient/helpful customer service and experience so far, I am feeling very optimistic about this being my go-to e-file option as an expat.

Will update as this progresses but thought some might be interested if like me, you want to e-file but have not found a good option really yet.

Thanks for this update - it is very informative - let us know how you get on once filing is underway.

I've used Tax Act also but found a major omission last year (shouldn't have been however because it shouldn't be difficult for them to introduce - but probably not the demand) in that they do not handle GILTI filing (forms 8992 &/or 8993) - this prevented e-filing for me, which I had relied upon until 8pm on 15/10/2021 (my stupidity in leaving it so late  ) - anyway went the paper route and obviously heard nothing from the IRS since then.

Your comments on the carryback/carryforward calculations for Form1116 (and the AMT version) are interesting. With credit to @theOAP you might be interested in this post and the new proposed IRS schedules:

https://talk.uk-yankee.com/index.php?topic=99922.msg1317121#msg1317121

It seems as these forms are now live on the IRS website (as of 01/19/2022)

https://www.irs.gov/pub/irs-pdf/i1116sb.pdf
https://www.irs.gov/pub/irs-pdf/f1116sb.pdf
https://www.irs.gov/pub/irs-pdf/f1116sc.pdf
https://www.irs.gov/pub/irs-pdf/f1116sc.pdf

Thanks for this update - it is very informative - let us know how you get on once filing is underway.

I've used Tax Act also but found a major omission last year (shouldn't have been however because it shouldn't be difficult for them to introduce - but probably not the demand) in that they do not handle GILTI filing (forms 8992 &/or 8993) - this prevented e-filing for me, which I had relied upon until 8pm on 15/10/2021 (my stupidity in leaving it so late  ) - anyway went the paper route and obviously heard nothing from the IRS since then.

Your comments on the carryback/carryforward calculations for Form1116 (and the AMT version) are interesting. With credit to @theOAP you might be interested in this post and the new proposed IRS schedules:

https://talk.uk-yankee.com/index.php?topic=99922.msg1317121#msg1317121

It seems as these forms are now live on the IRS website (as of 01/19/2022)

https://www.irs.gov/pub/irs-pdf/i1116sb.pdf
https://www.irs.gov/pub/irs-pdf/f1116sb.pdf
https://www.irs.gov/pub/irs-pdf/f1116sc.pdf
https://www.irs.gov/pub/irs-pdf/f1116sc.pdf

Thanks for this, I did see those draft Schedules theOAP mentioned in the other thread, very encouraging move forward!

UPDATE - just logged in again and I can now view draft forms. I'm actually amazed!!

Why am I amazed? Several reasons:

- The draft forms contain 2 different options. First option is filing with the FEIE and 1116 (I've never considered how to do this?) where they have applied the recovery rebate credit and I would get a larger refund despite not getting the additional child tax credit (I need to check this though as I said "no" to the qu on stimulus cheque, but thought it was specifically about 2021 as I did receive some previously?). The second option is 1116 only (no 2555) which is how I usually do it and it is saying $2800 refund due to ACTC as I would expect
- They have automatically generated form 8833 for both me and my wife with wording I would normally use to cite US-UK tax treaties for why my pension gain should not be taxed nor contributions, etc. They've cited the correct Treaty, Article, and IRS code provision - I am genuinely amazed at this!
- They have self-generated a number of additional information forms to file, including one that makes the statement about why the self-employment is expect from paying SS tax due to UK NI contributions paid and US-UK agreement. Form stating what exchange rate was used, etc. Again, genuinely amazed!
- They've included all worksheets including full AMT and forms.

As I get over my shock, I would be curious to know if others have experience with using combination of FEIE and 1116 like this...

Looking very positive to me!

In your amazement and as you are actually logged in, can you determine if the software shows Forms 8992/3 (GILTI)

I presume that based on your knowledge and experience you opted for the 'File Yourself' option?

I don't know your own pension situation, but a perplexing question for many is and has been the requirement to file Form 3520 - does H&R Block point you in this direction with its' prompts?

In your amazement and as you are actually logged in, can you determine if the software shows Forms 8992/3 (GILTI)

I presume that based on your knowledge and experience you opted for the 'File Yourself' option?

I don't know your own pension situation, but a perplexing question for many is and has been the requirement to file Form 3520 - does H&R Block point you in this direction with its' prompts?

Hi Smitch,

I am  not sure 8992 is on there unfortunately: https://expatonline.hrblock.com/supportedforms. You could email their support and ask, they have been very responsive for me.

For 3520 this is the info box that comes up on the system when I ticked Company-funded pension:

"Some foreign pensions will trigger Foreign Trust Reporting by the IRS (Form 3520/3520A), which cost an additional 300 euro per Foreign Trust.
We have some general guidance for if you need these forms for company funded pensions. For private pensions, if you believe you need these forms, please contact us at expatonline@hrblock.com"

Then I filled this in:
If this is a foreign company pension account, please let us know the contributions for 2021:
Contributions made into your foreign pension account are normally included in your taxable compensation per US Tax Law.

Were the contributions to this pension account irrevocable (could not be changed once made)?

Yes

No

Who contributed the majority to the pension account (i.e. more than 50%) you or your employer?

I contributed the majority to this pension account

My employer contributed the majority to this pension account

Then this info box came up:
"Awesome, it would seem per the 402(b)/Revenue Procedure 2020-17 exception, you shouldn't need to use Form 3520/3520A. These forms are very complex and have severe penalities, so if you believe you would need to report it, let us know at expatonline@hrblock.com as every situation is individual and may need more in depth analysis."

My main hope now is that they don't force me to say I have to supply a letter from the HMRC saying we pay NI so are SE tax exempt - that would require a paper filing and I have already supplied that letter in previous years.

Hope this helps!

Very good - I would consider $149 a bargain for this!

I'm interested on their take on the 3250. I have never filed one per advice I got from a US tax attorney. I know it has been discussed lots here. I am supposing that the software came to that conclusion because you said in that year the company paid more of the contribution. I wonder if this is on a total basis - i.e. the total in your pension was more than 50% funded by the company, or whether it is on a yearly basis. For example - if one year you personally paid more than the company would you file the 3250 in that year?

This is the memo referred to, I believe:

https://www.irs.gov/pub/irs-drop/rp-20-17.pdf

I don't see anything in there which distinguishes between employer and employee contributions?

Best

A

Very good - I would consider $149 a bargain for this!

I'm interested on their take on the 3250. I have never filed one per advice I got from a US tax attorney. I know it has been discussed lots here. I am supposing that the software came to that conclusion because you said in that year the company paid more of the contribution. I wonder if this is on a total basis - i.e. the total in your pension was more than 50% funded by the company, or whether it is on a yearly basis. For example - if one year you personally paid more than the company would you file the 3250 in that year?

Best

A

It is a good question - and one I think you could put to them. They have been quite helpful and responsive, although more complex questions take a few days to respond. I am truly impressed with this Expat-specific service and undoubtedly will be using them for my future filing. They got everything right and more from my perspective, in contrast to other major providers people tend to use as Expats where they were getting things clearly wrong for my situation.

I just modified my post and added this:

This is the memo referred to, I believe:

https://www.irs.gov/pub/irs-drop/rp-20-17.pdf

I don't see anything in there which distinguishes between employer and employee contributions?

I did ask them that question but before they would answer they told me they couldn't find my email associated with any account...that's because I haven't signed up for it - fair enough!