The Internal Revenue Service (IRS) advises that U.S. citizens and resident aliens living outside the United States can use IRS Free File to prepare and file their federal tax returns electronically.
IRS Free File is brand-name software that is offered exclusively at IRS.gov, through a partnership with the tax software industry. There are five companies that accept foreign addresses. Taxpayers should review the list of tax forms supported by the company to ensure it meets their needs, especially Form 1116, Foreign Tax Credit, and/or Form 2555, Foreign Earned Income.
To be eligible, taxpayers’ adjusted gross income in 2010 must be $58,000 or less. Some overseas taxpayers may exclude $91,500 of their 2010 foreign earnings, which would make more people eligible for IRS Free File.
Free File software generally asks questions and taxpayers supply the answers. The software completes the proper tax forms, does the math, and allows for free electronic filing through IRS e-file. By filing electronically, taxpayers due refunds and who have U.S. bank accounts can opt for direct deposit and get their refunds in as few as 10 days.
Taxpayers with an Adjusted Gross Income (AGI) over $58,000 can efile their returns by purchasing online software. Check the software provider’s information to ensure that it can accommodate a foreign address.
To get started with IRS Free File, go to http://www.irs.gov/freefile and select “Pick a Free File Company.”