Retirement tax questions


@ccoutin1 wrote:

Thank you so much for your reply, your advice is most helpful. It’s a shame I cannot add a mobile phone to my account to be verified though, as I only have a UK mobile. Will that be an issue at all, do you know? 


That's going to be a snag.  What neither of those two linked articles tells you is that you have to have a US address and US credit card to use Turbotax online, and you have to have a US bank account to receive your tax return by direct deposit.  Turbotax is technically not licensed for use outside the United States.  Your best bet may to find someone in the US to buy a copy for you on CD from a store and mail it to you, or buy a downloadable copy and send it to you via a file sharing service.  

 

(Separately, I would want to keep a US credit card and US bank account for just such kind of reasons even if I moved out of the country, but it's up to you.)

 

As far as the actual tax laws are concerned, as long as you are a US citizen you are required to report all your worldwide income on a US tax return and pay US income tax.  There are various credits to reduce the tax if you are also taxed in the country where you live.  If you live overseas more than 330 days, you can exclude your income earned from working from US tax, although you still pay US tax on unearned income like pensions and investments.

 

The tricky part is going to be figuring out how to actually use Turbotax overseas due to the limitation I mentioned.