Filing taxes as expat

[ShajeerN]

Hello,

I have been using TurboTax for the past 5 years to file taxes. However, I will be moving abroad this year to UAE, and I will need to file for tax return on the income I was earning here in the US till I left, as well as on the income I will be earning in UAE as an expat. I also expect to have rental income from a property here in the US. Can TurboTax help with filing my taxes, given my situation outlined above?

Thank you.

[RobertB4444]

Yes.  You are a US citizen and as such you are required to file the same tax return that you have always filed claiming all of the income that you earn worldwide.  

You will be able to claim a foreign earned income exclusion for income earned outside the US or you can claim a foreign tax credit for taxes paid to foreign countries that is taxed by the US.  But the income earned from US sources - like your rental income - is taxed the same as if you lived here.

In order for TurboTax to function you will need a US address and phone number.  You may want to find a friend or relative that will allow you to get mail at their home before you leave the country so that you can use that address to file your taxes.

@ShajeerN 

[xmasbaby0]

Yes, TurboTax can be used for that situation.   Many ex-pats use TurboTax.   Understand that in order to pay TurboTax fees or purchase TT software, you need a U.S. based bank account.  And if you are receiving an income tax refund, the IRS will not make a direct deposit to a foreign bank account.  If you do not have a U.S. bank account for a direct deposit then IRS will only mail a check to the address on your tax return.

[ShajeerN]

I understand. The complication, however, is that I am moving mid year. So I do not think I will qualify for the FEIE using Physical Presence or Bona Fide residence methods. And as far as I know, extending the tax filing deadline to June 15 (Automatic) or October (by request) would mean that I would have to pay interest on any taxes owed after April 15, which I am trying to avoid. Or is there a way to pay estimated tax by April 15 and wait till June 15 to file? Can TurboTax handle these complications?

[RobertB4444]

Yes.  Since you are moving mid-year you will use that date as your start date for your bona fide residence.  The end date is 12 months later.  So you will need to file an extension for your 2025 taxes and file them after the 12 month period is over in order to claim that 12 month period for your physical presence test.  You will only get an exclusion for the portion of the 12 months that falls during the tax year but that seems pretty fair.

@ShajeerN