Thank you for your insights. I had not even considered FINCEN for the bank account. On a side note I image Denise has a military definition of F(U)BAR ;).
:-) Funny I was just wrapping up my taxes after spending almost 15 hours over past 4 days on Turbo Tax, URS website, publications, etc., The most confusing part is dealing with IRA contributions, conversions, recharacterizations that is not same as rolling over! lol
I have to say, to my surprise, filing the FinCEN form for FBAR was much simpler than I thought. All online and basically one section, almost like filling out a form to send a wire. 🧐
We hear you, Nancy! An excellent article. We always use a Portuguese accountant to prepare and file our Portugal taxes--@ €50 per return (€100 for a married couple filing jointly), it's one less hassle and worry. This year, however, is the first time in decades that we are doing our own USA taxes. We're using a free program (Online Taxes: https://www.olt.com/) recommended by Uncle Sam. From the point that you create your personal identification and select to use a foreign address (i.e., Portugal) as your home, it remembers that info and applies your foreign resident status to everything required. And guess what? It's really easy to use. We first used it to request a filing extension (until 15 October), because we needed our completed (and accepted) tax returns from Portugal to enter all the payments (including my partner's Social Security) we had made here. Two days after requesting the extension, we both received notifications by email that our requests for extensions had been granted. Similarly, the FBAR was a pain, but quite easy to complete ourselves online. Within 24 hours of sending it, we received confirmation of its acceptance.
Great information. Question: did you have to provide AFM any information from your US tax return? The reason I'm asking is because another tax outfit in PT told me I should file my taxes in PT first, followed by my US tax return. I'm not sure which to do first now...
First off! Thank you Denise for your service! Secondly, love this article and all the info. Didn’t consider FUBAR but should have! 😂 I’m the turbo tax accountant in our family for 12 plus years and I get a migraine every year I lock myself in a room and do it! This is a fun skit about how dumb money stuff is in the great US of A : https://youtu.be/-_DSRGWghI4
Lastly, did you just file your US retirement taxes using your Portuguese address? I’m still paranoid about the whole state taxes vs only Federal tax filing being in a state now that charges taxes and having heard from Veronica (VRSA) how California wanted to come after her for state taxes and her accountant took care of it. For that reason I’ve conferenced with an expat tax attorney in NJ who agreed to file ours which will just be IRA withdrawals and my better half’s military medical disability monthly money but he charges $500. Figured that might be worth it. Thoughts?
We spent about 6 weeks living with friends in FL before moving to Portugal. We changed our voter ID and driver’s license from CÁ to FL just so we didn’t have any issue with CÁ. There is not state tax in FL, but this year I also filed a form with IRS stating my address in PT. I struggled with this one because it means I can’t vote in primaries and will now be in the Over seas American pool. So not sure what the best decision is…
Thanks Nancy, you know. We do the best we can with the information we have. We’re also making peace with not voting. While the Mobsters under a certain umbrella get away with everything we don’t want to risk going to jail over something like that despite it being ingrained in us to vote. We’ll see you soon. Thanks for the reply. And PS it is good for your blood pressure not to watch our smart friend Rachel everyday. Your blood would just boil.
US and canadian citizen. Cost to file US taxes with US accountant $3,000.00. I've been told if I do anything wrong the penalties could be serious. I don't owe taxes, business is terrible since covid but I feel I have to use an accountant for US. But then you were always smarter than me!!!! So glad you are enjoying your new home. Kisses to Onyx...she's lucky she doesn't have to file taxes!
Linda, as I suggested our taxes are very simple when compared to someone the owns a business. If you think you won’t return to the States (how many years has it been?) you could turn in your Passport and avoid US taxes entirely. A Canadian passport seems just as good to me.
Reminder that your income after your Palm Sorings home sale will be reduced, make sure that the SS Admin returns to your higher monthly income- on the second year after the year your home sold.
Thank you so much for your post and the explanation of your process. I just paid a ton of money to someone in the US to do my taxes. You just reminded me about the Portuguese savings.. I don’t think I had over 10K in an account & I’m hoping I don’t need to do Portuguese taxes because I arrived December 29. Taxes! Like you, I don’t mind paying them but the whole process is scary!!
You begin to file PT taxes the year after you become a resident. If you arrived 29 Dec then you are likely to become/became a resident April 2022 and don’t need to file until 2023.
I contacted an accountant in Portugal for a consultation as well. He told me to file my Portugal taxes first and take an extension to file US. My taxes are similar to yours. I’d rather not file late to the US.
My Portugal accountant said taxes would be 10% as a NHR and then I’d pay the US required taxes. I would not pay late to US. Can that be done US first. Because Portugal filing is later than US.
Thank you for your insights. I had not even considered FINCEN for the bank account. On a side note I image Denise has a military definition of F(U)BAR ;).
:-) Funny I was just wrapping up my taxes after spending almost 15 hours over past 4 days on Turbo Tax, URS website, publications, etc., The most confusing part is dealing with IRA contributions, conversions, recharacterizations that is not same as rolling over! lol
I have to say, to my surprise, filing the FinCEN form for FBAR was much simpler than I thought. All online and basically one section, almost like filling out a form to send a wire. 🧐
We hear you, Nancy! An excellent article. We always use a Portuguese accountant to prepare and file our Portugal taxes--@ €50 per return (€100 for a married couple filing jointly), it's one less hassle and worry. This year, however, is the first time in decades that we are doing our own USA taxes. We're using a free program (Online Taxes: https://www.olt.com/) recommended by Uncle Sam. From the point that you create your personal identification and select to use a foreign address (i.e., Portugal) as your home, it remembers that info and applies your foreign resident status to everything required. And guess what? It's really easy to use. We first used it to request a filing extension (until 15 October), because we needed our completed (and accepted) tax returns from Portugal to enter all the payments (including my partner's Social Security) we had made here. Two days after requesting the extension, we both received notifications by email that our requests for extensions had been granted. Similarly, the FBAR was a pain, but quite easy to complete ourselves online. Within 24 hours of sending it, we received confirmation of its acceptance.
Great info! Thanks!!
Anytime, Nancy ... for what it's worth. :-)
Bruce, would you share your Portuguese accountant?
Great information. Question: did you have to provide AFM any information from your US tax return? The reason I'm asking is because another tax outfit in PT told me I should file my taxes in PT first, followed by my US tax return. I'm not sure which to do first now...
Yes all the info I provided was from our US taxes…so based on my experience U taxes first
Thanks, Nancy, this is really helpful.
First off! Thank you Denise for your service! Secondly, love this article and all the info. Didn’t consider FUBAR but should have! 😂 I’m the turbo tax accountant in our family for 12 plus years and I get a migraine every year I lock myself in a room and do it! This is a fun skit about how dumb money stuff is in the great US of A : https://youtu.be/-_DSRGWghI4
Lastly, did you just file your US retirement taxes using your Portuguese address? I’m still paranoid about the whole state taxes vs only Federal tax filing being in a state now that charges taxes and having heard from Veronica (VRSA) how California wanted to come after her for state taxes and her accountant took care of it. For that reason I’ve conferenced with an expat tax attorney in NJ who agreed to file ours which will just be IRA withdrawals and my better half’s military medical disability monthly money but he charges $500. Figured that might be worth it. Thoughts?
We spent about 6 weeks living with friends in FL before moving to Portugal. We changed our voter ID and driver’s license from CÁ to FL just so we didn’t have any issue with CÁ. There is not state tax in FL, but this year I also filed a form with IRS stating my address in PT. I struggled with this one because it means I can’t vote in primaries and will now be in the Over seas American pool. So not sure what the best decision is…
Thanks Nancy, you know. We do the best we can with the information we have. We’re also making peace with not voting. While the Mobsters under a certain umbrella get away with everything we don’t want to risk going to jail over something like that despite it being ingrained in us to vote. We’ll see you soon. Thanks for the reply. And PS it is good for your blood pressure not to watch our smart friend Rachel everyday. Your blood would just boil.
US and canadian citizen. Cost to file US taxes with US accountant $3,000.00. I've been told if I do anything wrong the penalties could be serious. I don't owe taxes, business is terrible since covid but I feel I have to use an accountant for US. But then you were always smarter than me!!!! So glad you are enjoying your new home. Kisses to Onyx...she's lucky she doesn't have to file taxes!
Linda, as I suggested our taxes are very simple when compared to someone the owns a business. If you think you won’t return to the States (how many years has it been?) you could turn in your Passport and avoid US taxes entirely. A Canadian passport seems just as good to me.
Reminder that your income after your Palm Sorings home sale will be reduced, make sure that the SS Admin returns to your higher monthly income- on the second year after the year your home sold.
Steph, I don’t understand. We are not taking SS yet…..
Thanks….hope you are well.
Alrighty then! Nothing to worry about then!
Interesting
Thank you so much for your post and the explanation of your process. I just paid a ton of money to someone in the US to do my taxes. You just reminded me about the Portuguese savings.. I don’t think I had over 10K in an account & I’m hoping I don’t need to do Portuguese taxes because I arrived December 29. Taxes! Like you, I don’t mind paying them but the whole process is scary!!
You begin to file PT taxes the year after you become a resident. If you arrived 29 Dec then you are likely to become/became a resident April 2022 and don’t need to file until 2023.
Thanks Nancy.. One less thing to worry about right now. Is it the same for fIling for NHR? Do you know?
You must file NHR before you complete your taxes…we did it as soon as we could just to get it out of the way.
Thanks Nancy.
I contacted an accountant in Portugal for a consultation as well. He told me to file my Portugal taxes first and take an extension to file US. My taxes are similar to yours. I’d rather not file late to the US.
My Portugal accountant said taxes would be 10% as a NHR and then I’d pay the US required taxes. I would not pay late to US. Can that be done US first. Because Portugal filing is later than US.
The instructions you received are contradictory to what we and others I have spoken to suggest. But again we are not experts!
Do I need a sponsor to get NIF?
No