A guest post originally published here.

Earlier this month, the IRS announced the 2024 tax filing season will open on January 29, I’ve already received emails from people asking about how to file their US tax return for this year. For Americans abroad, this can be a very anxiety provoking and stressful process because it is well documented that filing taxes is more difficult for Americans outside the US than inside the US. According to American Citizens Abroad, it is estimated that return preparation fees for Americans abroad is between $2,000 and $3,000 and significantly higher for small business owners, while the average fee in 2021 was $323 for a return with itemized deductions and $220 for a return without itemized deductions.

Since Americans abroad are liable for filing and paying tax both in the country they live in as well as in the US, it is difficult for them to understand why they are subject to tax in two countries since their immigrant counterparts don’t face the same tax filing or liability from their home countries. The United States is unique in that its citizens are liable for US tax on non-US sourced income. The US tax code is completely unique and out of step with the tax system experienced in the rest of the world, which makes it difficult for Americans abroad to remain in compliance with their US tax filing obligations, but not impossible.

On top of this, the IRS makes it difficult for Americans abroad to remain compliant with their tax filing obligation for many reasons, but one of them is that online tax preparation software options aren’t American abroad friendly, hence why remaining in compliance with the IRS is so challenging for many. This article attempts to review the online US tax preparation software options for Americans abroad in 2024. I will try to clarify online tax prep software in the market with an emphasis on free, but I have also reviewed a few low cost and paid options since everyone isn’t always able to use the free options, as this is largely dependent on personal circumstances.

The Democrats Abroad Taxation Task Force is proud to announce part 1 of the 2024 Tax Webinar Series every Wednesday starting on January 10!

• Wednesday, January 10 - How To Survive Tax Day As An American Abroad (Americas/Europe Friendly Time)
  
• Wednesday, January 17 - Federal Student Loans For Americans Abroad FREE (Asia/Europe Friendly Time)
  
• Wednesday, January 24 - How To Invest For Americans Abroad & Dual Citizens (Americas/Europe Friendly Time)
• Wednesday, January 31 - How To Catch Up On Filing US Taxes From Abroad (Asia/Europe Friendly Time)

We are asking for a small donation to attend each event.

Tickets for each webinar in the series must be booked separately.

All proceeds go to Democrats Abroad.

All webinars will take place on an online Zoom webinar. Read on for more info on each webinar.

How To Survive Tax Day As An American Abroad

This is a consumer focused webinar to help you save money on your tax preparation costs and make you aware of US government resources available to Americans abroad to file their US tax return. The aim of this event is to help you feel more confident to file your US tax return, help you decide if you should file yourself, use tax prep software, or hire an accountant. Also to inform you of your rights when it comes to dealing with the IRS, and debunk myths on the who, what, where, when, and why of filing a US tax return as an American abroad.

When: Wednesday, January 10 at 1pm EST view your time zone

Get your tickets now

Federal Student Loans For Americans Abroad

Although this isn't a tax webinar, navigating paying off student loans as an American abroad is complicated especially with payments resuming last year. This webinar will clarify the options available to Americans abroad now that the payment freeze on federal student loans has ended and payments have resumed.

When: Wednesday, January 17 at 3am EST view your time zone

Get your tickets now

How To Invest For Americans Abroad And Dual Citizens

Although this isn't a tax event per se, we received high demand to host a webinar on investing. It is really difficult for Americans abroad and dual citizens (particularly in Europe) to find ways to invest their money in the country they live in as well as in the United States. We often feel like we're stuck in a rock and a hard place, unable to open an investment account in some cases and save for our futures. In this webinar, we'll go over investing basics and the options available. Please note, this session will focus on European Union regulations but will cover basic investing principles applicable anywhere.

When: Wednesday, January 24 at 1pm EST view your time zone

Get your tickets now

How To Catch Up On Filing US Taxes from Abroad (Streamlined Filing)

Did you forget to file a US tax return since you moved abroad, or have you been living outside the US for a long time (decades even!) but you've not been filing a US tax return? Join us to go over the IRS Streamlined Filing Procedure - the process to get caught up on your US tax filings. The good news is that you don't have to file for all the years that you missed, you potentially won't owe any US tax, and you might even be eligible for some money from the IRS depending on your circumstances.

When: Wednesday, January 31 at 3am EST view your time zone

Get your tickets now

Disclaimer: Democrats Abroad cannot provide individual tax advice. We are not tax lawyers, accountants or advisers. Please consult a professional tax adviser/accountant/return preparer when addressing your personal tax matters.

We recommend the IRS Tax Return Preparer Directory to find a service provider who meets your needs and budget, though buyers need always beware. Democrats Abroad suggests Americans abroad in need of tax advice consult the IRS Tax Return Preparer Directory to find an advisor or tax return preparer near you or providing online services: https://irs.treasury.gov/rpo/rpo.jsf

The US State Department is hosting an open comment period to reduce the renunciation fee from $2,350 to $450. This is a great opportunity for your voice to be heard about the tax problems forcing Americans abroad to renounce their citizenship in the first place (aka the tax compliance nightmare suffered by Americans abroad).

Here’s all you need to do: 

1. Go to the relevant State Department page at this link.
2. Click the big green button on the right side that says “SUBMIT A FORMAL COMMENT.”
3. Leave a comment! We’ll include a template below - but the more personal your comment is the better!

Comments close November 1, so be sure to submit before the deadline.

Template Messaging (But the more personal the better!)

Asking Americans to pay $450 to renounce their citizenship is still exorbitant (as compared to other consular fees that are substantially lower), but at least it’s an improvement. 

But the real tragedy is that so many Americans feel like they have to cut ties in the first place. The fact that more Americans renounce their citizenship than any other nationality is deeply embarrassing - instead of penalizing them on their way out the door, the State Department should be asking why they’re leaving in the first place. 

The obvious answer is the uniquely unfair tax system to which the US subjects its citizens living abroad. The State Department’s mission includes “shape[ing] an international environment in which all Americans can thrive.” Surely that involves helping guide the government toward policies that don’t massively complicate life for Americans abroad. 

Instead of nickel-and-diming Americans forced to renounce their citizenship to escape double-taxation, the State Department should push Congress to bring the US into line with the entire rest of the world in the way it taxes its expats.

Thanks for your help!! 

DA Global Taxation Task Force
https://www.democratsabroad.org/taxation

Please share this with any friend or family member that might be interested in submitting a formal comment!

The webinar that was going to be tomorrow, Wednesday, September 27 at 12pm ET with Rep. Don Beyer to talk about the Tax Simplification for Americans Abroad bill is now cancelled.

We will come back to you once we are able to reschedule, but here's what you can do in the meantime:

1. Click here to donate to Democrats Abroad. We recommend $10 or $20, but any donation amount is welcome.
2. Click here to contact your House Representative *TODAY* and ask them to co-sponsor the bill. Because no one will be there to answer a call or check emails once the government shuts down on October 1. So act now!

Sincerely,
Rebecca Lammers
Chair, Democrats Abroad Taxation Task Force
democratsabroad.org/taxation

P.S. Don't forget to sign up for the latest tax advocacy new by joining the Taxation Task Force mailing list. Click here to join now.

We are excited to announce that H.R. 5432 Tax Simplification for Americans Abroad Act has been introduced in the U.S. House of Representatives. Join us for a webinar with the sponsor of the bill, Congressman Don Beyer (D VA-08) on Wednesday, September 27 at 12pm ET to find out more!

Click here to RSVP

The Tax Simplification for Americans Abroad Act will:

• Create a simplified tax return form to help make it easier for Americans filing from abroad who owe no U.S. tax
• Eliminate double taxation for pensions and retirement distributions (including Social Security benefits), scholarships, fellowship grants, disability benefits, childcare expenses, family medical leave, and unemployment benefits
• Consolidate the FBAR into FATCA, increase the filing threshold, and eliminate the requirement to report separately to FinCEN

Please call your House Representative today and ask them to co-sponsor the bill. Click here for how to call and what to say.

Need more info to make the call? Join us for the webinar where we will lay out clear instructions for how to call your House Representative!

Don't forget to RSVP to attend!

Thank you for taking the time to help us pass the bill!

Don't forget to sign up for the Taxation Task Force mailing list by clicking here for the latest on tax updates.

Below is a copy of the letter from Democrats Abroad submitted to the Senate Finance Committee in response to the report "Credit Suisse's Role In U.S. Tax Evasion Schemes" released on March 29, 2023.

Click here to download a pdf of DA's letter in full.

On Friday, December 30, 2022, the IRS issued Notice 2023-11, which provides temporary relief from the FATCA reporting rules for non-U.S. banks (known as FFIs, “foreign financial institutions”) in about 90 countries (known as Model 1 Jurisdictions). The notice specifically provides relief for reporting of U.S. TINs (Social Security or ITIN numbers) for 2022, 2023, and 2024.

Democrats Abroad is encouraged by the recognition by Treasury and the IRS that modifications to the FATCA-reporting regime are necessary. Although temporary relief for non-U.S. banks is a positive step, the temporary relief is provided to FFIs rather than directly to Americans abroad. We would prefer permanent relief that resolves the core problem caused by FATCA: loss of access to non-U.S. bank accounts for Americans abroad.

In 2022 the Democrats Abroad Taxation Task Force met with IRS and Treasury officials to raise awareness of the ongoing tax and financial-access issues experienced by our constituency. We are pleased to see some of our views are recognized in this IRS notice. We look forward to an ongoing productive dialogue with these government agencies and Congress in order to resolve the tax and financial-access issues that severely impact the daily lives of Americans abroad.

Highlights from the notice that are relevant to Americans abroad include:

• Treasury and the IRS acknowledge that foreign countries, non-U.S. banks, and U.S. citizens (including for Americans living abroad) are concerned about account closures when a U.S. TIN has not been provided.
• Treasury and the IRS acknowledge notification that some non-U.S. banks are refusing to open or maintain accounts for Americans abroad, or are “otherwise providing access to accounts on less favorable terms than apply to other account holders, even if the U.S. citizen provides a U.S. TIN.”
• One of the requirements for FFIs to receive relief is for the relevant country to encourage its banks not to discriminate against Americans abroad who do provide a U.S. TIN.
• Even though Americans abroad and FFIs had up to 6 years to provide U.S. TINs for FATCA reporting, TINs were still not provided.
• Relief to FFIs is limited to reporting on accounts opened before a certain date and is conditional upon the bank providing U.S.-citizen customers with information on how to come into tax compliance and/or renounce citizenship.
• Relief also obliges banks to take steps to encourage tax compliance by U.S. citizens like providing links to the IRS and U.S. State Department’s websites.

The Taxation Task Force will be hosting a new volunteer info session on April 19th. Anyone that's interested in rolling up their sleeves to help resolve the tax and banking problems Americans abroad face is welcome to join. RSVP here to join.

You don't have to attend the info session to volunteer. You can apply by clicking here to fill in the volunteer interest form so we can get a better sense of your strengths, interests, and time availability. After you've filled in the form, you'll be invited to a call to discuss next steps.

You can also learn more about what roles are available by clicking here for an outline of volunteering opportunities with the tax team.

If you have any questions, don't hesitate to email the team on [email protected].