filing US back taxes

[BruceC 0]

Ok people, my wife (dual US/CAn citizen) has been in canada and paying Canadian taxes for 10 years now. She has not filed US taxes in this time, and of course, since we are looking at moving back to the US, she now needs to get this done.

How did most of you handle this? Did you do it yourselves, or get a tax professional? I've contacted a few professional accountants and they want anywhere from $3600 to $5000 to complete the 6 yrs.

if you have done this yourself, was it fairly straight forward? can you point me in the right direction as to procedure or forms required?

Thanks,

[Flames9_RN 358]

http://forums.serbinski.com/viewforum.php?f=2&sid=f0a88b2076c539677d5aa05f36e998a2

[Inky 1,110]

This is something you need professionals for I think.

US citizen is required to file taxes regardless of where they live and she should have been filing all thos years. Hopefully nothing turns up like a huge bill that she owes to the IRS.

[Jojo92122 1,924]

Ok people, my wife (dual US/CAn citizen) has been in canada and paying Canadian taxes for 10 years now. She has not filed US taxes in this time, and of course, since we are looking at moving back to the US, she now needs to get this done.

How did most of you handle this? Did you do it yourselves, or get a tax professional? I've contacted a few professional accountants and they want anywhere from $3600 to $5000 to complete the 6 yrs.

if you have done this yourself, was it fairly straight forward? can you point me in the right direction as to procedure or forms required?

Thanks,

The quote you got is a very fair price for filing back tax returns for six years. Your situation is complicated because your wife may have foreign income. She may qualify for the foreign earned income credit. Tax laws change every year and this year's return may be dependent on the information on prior returns.

If you have the time, energy, and math skills to go about filing, you could do it yourself. Unfortunately, you don't know what you don't know, so you have a big learning curve. You have to ask yourself - what are the risks and benefits of filing on your own and can you emotionally afford to deal with any mistakes on the tax returns that may affect your family's desire to return (or immigrate) to the US.

[BruceC 0]

Thank you all that replied. Since the ultimate goal is to get me a green card, probably having the taxes prepared by a professional will eliminate some of the worry, and will no doubt get done faster than me do the research and filing.

[ryanandjen04 1]

Thank you all that replied. Since the ultimate goal is to get me a green card, probably having the taxes prepared by a professional will eliminate some of the worry, and will no doubt get done faster than me do the research and filing.

We JUST went through this, we were terrified we would owe a ton but we actually got $43 back, lol. We had to do 4 years (3 where he was working) and we did at H&R Block and it was around $450, it will depend on how many forms are needed for your individual case, but that is considerably less then $4000. Hope this helps..

[BruceC 0]

We JUST went through this, we were terrified we would owe a ton but we actually got $43 back, lol. We had to do 4 years (3 where he was working) and we did at H&R Block and it was around $450, it will depend on how many forms are needed for your individual case, but that is considerably less then $4000. Hope this helps..

Hi ryanandjen04,

Are you saying that H&R block did 4yrs of US returns for $450? Did you also report your foreign accounts (i.e. RRSP, RESP, TFSA)? I didn't realise they also do US returns.

[Inky 1,110]

H&R in Canada does do US returns but you have to make sure that you find a location that has someone who specializes in the US tax returns, that or your spouse returns to the USA and uses an H&R block in the USA to have her taxes done.

[Flames9_RN 358]

Lot of mixed reviews on H&R block, but with anything, their are good and bad workers!! Years back I saw the "Canadian TAx expert" at H&R block in Arlington VA! I had done some research (thanks to that site I provided above) so I knew a bit! My bit turned out to be a lot more than him! Thanked him for his time and left!!

And make sure you go with someone who has done it before! i say that because my inlaws used their acountant the first year I had to file USA tax returns! I had a RRSP withdrawal to report and their accountant didnt know how to do it--SOOOo had to research it--which costs $$$$$. Wasn't a cheap tax return that year. lol Best of luck

[BruceC 0]

Thanks Flames9_RN.....I have been browsing that site you posted, and it has so much info. I'm gonna contact the local H&R block and ask if they have someone who has done the US returns before, and more specifically that has delt with RESP, RRSP, TFSA, etc.

I suppose it is also possible to have them complete one year, and then me do the other yrs.

On a side note, on that site you posted, they seem to indicate 3 yrs of back taxes required (as long as there is no taxes owing), but 6 if there is. Do you agree that is all that is required? I've seen on vj they are suggesting 6 yrs with no mention of 3 (other than what is required for immigration). Would 3 yrs suffice and bring my wife up to current status with IRS?

[Flames9_RN 358]

Thanks Flames9_RN.....I have been browsing that site you posted, and it has so much info. I'm gonna contact the local H&R block and ask if they have someone who has done the US returns before, and more specifically that has delt with RESP, RRSP, TFSA, etc.

I suppose it is also possible to have them complete one year, and then me do the other yrs.

On a side note, on that site you posted, they seem to indicate 3 yrs of back taxes required (as long as there is no taxes owing), but 6 if there is. Do you agree that is all that is required? I've seen on vj they are suggesting 6 yrs with no mention of 3 (other than what is required for immigration). Would 3 yrs suffice and bring my wife up to current status with IRS?

I have no clue. I believe the guy that answers the majority of the questions on that site i Agnelson. He seems fairly knowledgeble, yet a bit grumpy,lol

[ryanandjen04 1]

Hi ryanandjen04,

Are you saying that H&R block did 4yrs of US returns for $450? Did you also report your foreign accounts (i.e. RRSP, RESP, TFSA)? I didn't realise they also do US returns.

Sorry I didn't get a notification about the replies...

Yes I'm positive, we just had it done last month. We had it done at an H&R block in the states after going and asking here in Canada and being told it would be a minimum of $200 for each year (They will do it but it has to be sent to the head office)they suggested having my husband have them done when he got down to CO. We don't have any RRSP accounts etc. but we definately reported for foreign income. I know H&R block might not be the first choice for everone on here...but we are unfortunately not the type of people who have $4000 to spend on tax returns.. it was enough to pay what we did with all the other immigration money going out. There is usually only one tax person in each office that is able to do foreign income returns, so just make sure you tell them first it is for foreign income.For us it worked out, and I hope it does for you aswell. Good Luck.

[BruceC 0]

I was able to talk with a local H&R block representative who says they have done many returns for similar situations to my wife's and quoted $2-300/yr for the returns, and 30-40 per FBAR. 3 yrs would probably be sufficient if there are no US taxes owing. Of course, with all the media on the US imposing these foreign own accounts needing to be reported, the representative said they are quite busy and there is a 2-3 week wait. I'm not in much of a hurry, but this price seems much more reasonable than the $5-600/yr i was quoted via two local CA firms.

[ryanandjen04 1]

I was able to talk with a local H&R block representative who says they have done many returns for similar situations to my wife's and quoted $2-300/yr for the returns, and 30-40 per FBAR. 3 yrs would probably be sufficient if there are no US taxes owing. Of course, with all the media on the US imposing these foreign own accounts needing to be reported, the representative said they are quite busy and there is a 2-3 week wait. I'm not in much of a hurry, but this price seems much more reasonable than the $5-600/yr i was quoted via two local CA firms.

I see you live in Victoria BC, is it at all possible for your wife to go across the border to a bordering town and have her taxes done in the U.S.? It will still end up cheaper then the Canadian H&R block firms. Just a thought.

[BruceC 0]

It is possible, but as I see it hardly worth the effort. I would rather have a local firm look at them and have easy access to the office if extra documents or other things arise. As you say though, it sounds like one could save a bit of money by doing as you suggested.