The Internal Revenue Service said Friday that taxpayers abroad can now use the Free File service to prepare and electronically file their taxes for free.
Five companies that are part of the Free File program are now able to handle returns filed from foreign addresses: H&R Block, TaxAct, eSmartTax from CompleteTax, TaxSlayer, and Online Taxes at OLT.com. Both U.S. citizens and resident aliens living abroad with adjusted gross incomes of $58,000 or less can use the brand-name software to prepare their returns and then e-file them for free.
This option may be especially attractive to taxpayers living and working abroad who claim the foreign earned income exclusion. That’s because the $58,000 income limit applies after the exclusion of up to $91,500 is subtracted, thus effectively making Free File available to many higher-income taxpayers. Eligible taxpayers claiming this exclusion on
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The IRS also reminded U.S. citizens and resident aliens that federal law requires them to report income from all sources, both foreign and domestic, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers also need to fill out Part III of
In addition, taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during 2010 must file Treasury Department
The IRS again on Friday urged taxpayers who, in the past, failed to disclose foreign accounts or report foreign income to take advantage of the agency’s new