If you are required to file a US tax return (citizen or green card holder) you are generally required to file form 1040 reporting all your world-wide income.
However, there are some issues to be aware of.
- Turbotax can't be purchased outside the US on a CD or as a download to install on your own computer. There are export restrictions, probably because of the encryption/password technology built in. If you want to use the program installed on your own computer, you will need a US address and US credit card to buy a download, or have a friend buy you the CD and mail it to you overseas, or buy it on a visit to the US.
- You can use Turbotax Online from anywhere in the world, but you need a US address and US credit card to pay the fees.
- The IRS will only deposit your refund into a US bank account.
I generally recommend that expats keep a US bank account and US credit card active, does not need to have much money, and can be something you access over the web from anywhere in the world. Just needs to be US-based.
If you are not a US person for income taxes (not a citizen or green card holder) then you only file a US tax return if you have US-connected income. You file a form 1040-NR, which is not currently offered by Turbotax, you would need to find another software company for that. You would still need a US bank account to collect any refund, unless you want the IRS to mail you a paper check (not recommended).
