Expat Tax Software for Americans Living Abroad

For U.S. citizens living overseas, tax season can be complicated and stressful.

The United States is one of the few countries that taxes its citizens on worldwide income, regardless of residency.

This means Americans abroad must often file:

✔ IRS Form 1040

✔ FBAR (Report of Foreign Bank Accounts)

✔ Form 8938 (FATCA)

✔ State returns (in some cases)

Thankfully, expat tax software solutions now make it easier to comply with U.S. tax obligations while maximizing foreign income exclusions and credits.

😵 Common Tax Challenges for U.S. Expats

✔ Understanding IRS residency tests vs. foreign country residency

✔ Calculating and applying the Foreign Earned Income Exclusion (FEIE)

✔ Avoiding double taxation with foreign tax credits

✔ Reporting foreign assets under FATCA and FBAR rules

✔ Keeping up with IRS deadlines while living in different time zones

🧾 Key Features of Expat Tax Software

✔ Guided step-by-step questionnaires for 1040, 2555, and 1116 forms

✔ FBAR and FATCA e-filing integration

✔ Country-specific deduction calculators

✔ Automatic deadline extension for foreign residents (until June 15)

✔ Tax treaty logic and foreign housing exclusions

💻 Top Expat Tax Software Platforms

✔ ExpatTaxOnline: Full-service platform with CPA review options

✔ Greenback Expat Tax Services: Tailored for digital nomads and retirees abroad

✔ MyExpatTaxes: User-friendly interface with auto-FBAR filing

✔ TaxAct Expat Edition: Affordable for basic filings with FATCA support

✔ TurboTax (with CPA add-on): Can work for U.S. expats with simple returns

✅ Compliance Benefits and Limitations

✔ Most platforms store prior-year returns and autofill data

✔ IRS e-file support ensures direct transmission from abroad

✔ Some offer audit defense and CPA consulting options

❗ Not all tools support self-employed expats or foreign pension reporting

❗ Some require upgrades for multiple state filings or child tax credit claims

🔗 Helpful External Resources

Important Keywords: expat tax software, IRS Form 2555, FBAR e-file, FATCA compliance, foreign tax credit tools