Do I Need an Expat Tax Professional or Can I Use Tax Software?
Most Americans abroad need an expat tax professional because a CPA or IRS Enrolled Agent helps you make the tough and often confusing expat decisions that tax software leaves to you. Those decisions include whether to claim the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC), which residency test you meet, and the FBAR, which is filed separately from your tax return. DIY expat tax software is built for U.S. returns and may handle a very simple one, but it can’t make those decisions for you or review the result.
Greenback Expat Tax Services is a full-service expat tax firm where a CPA or Enrolled Agent prepares every return. Since 2009, we have prepared more than 91,000 U.S. returns for Americans in 218 countries. This guide covers what DIY expat tax software leaves up to you, when you need an expat tax professional, and how switching works. For the basics, see our guides to U.S. expat taxes and why U.S. citizens abroad pay U.S. taxes.
Expat Taxes Can Be More Complex Than They Seem
What Does DIY Expat Tax Software Leave Up to You?
DIY expat tax software fills in the forms from your answers, so every expat decision on your return is yours to make, and no one checks it before you file.
You Choose Between the FEIE and the FTC
The FEIE lets you exclude up to $132,900 of foreign earned income for the 2026 tax year (returns filed in 2027) on Form 2555. The FTC credits income tax you already paid abroad. Which one lowers your U.S. tax depends on your country’s tax rates and your income, and the choice can carry into later years. Our guide to the FEIE vs. the FTC explains the trade-off. You also convert foreign income to dollars and work out whether the Foreign Housing Exclusion applies.
You Decide Which Residency Test You Meet
To claim the FEIE, you must meet the Bona Fide Residence Test, living abroad for an uninterrupted period that includes a full tax year, or the Physical Presence Test, with 330 full days abroad in a 12-month period. Software takes your answer as given.
The FBAR Is Filed Separately
If your foreign accounts total more than $10,000 at any time in the year, you file an FBAR. According to the IRS, “You don’t file the FBAR with your federal tax return.” It goes directly to FinCEN, so software built for your U.S. return doesn’t cover it.
No One Reviews Your Return
Programs such as TurboTax and DIY software sold by large tax chains like H&R Block are primarily designed for U.S.-based filers. With DIY software, you are the only reviewer of your expat return. Our short answer on doing your own U.S. expat tax return covers where people most often get stuck.
How Does DIY Tax Software Compare With an Expat Tax Professional?
Side by side, DIY tax software leaves each expat decision to you, while an expat tax professional handles it and checks the full return.
| Factor | DIY tax software | Expat tax professional (CPA or EA) |
|---|---|---|
| FEIE vs. FTC choice | You decide | Compared for your income |
| Residency test | You decide | Confirmed with you |
| FBAR | You file it separately | Filed for you |
| Complex situations | You work out the forms | Routine work |
| Review before filing | You check it yourself | Full review by your accountant |
| IRS letters | You respond on your own | Help on returns they prepared |
When Do You Need an Expat Tax Professional?
You need an expat tax professional whenever an expat decision affects your return, which covers most Americans abroad. These situations are where a CPA or Enrolled Agent makes the biggest difference:
- Self-employed: Self-employment tax of 15.3% still applies after the FEIE, and you need Schedule C and possibly a totalization agreement. See how we help self-employed expats.
- Income above $132,900: Combining the FEIE, the FTC, and the Foreign Housing Exclusion takes planning.
- A foreign company: Form 5471, Form 8865, or Form 8858 may apply. See how we help foreign business owners.
- Missed years: The Streamlined Filing Procedures need three years of returns, six years of FBARs, and a non-willful certification. See how we help late filers catch up and limit penalties.
- Foreign rental property: Rental income from foreign property needs Schedule E and depreciation. See how we help foreign property owners.
- Income in several countries: Allocation, currency conversion, and treaty positions go beyond what DIY software asks.
- Ties to a U.S. state: Some states continue to tax former residents, and our guide to state taxes for expats covers which ones.
- Life changes: Moving abroad, moving back to the U.S., marrying a non-U.S. citizen, or retiring abroad each change how your return is filed.
In every one of these situations, an expat tax professional makes the expat decisions with you, reviews the full return before it is filed, and helps with IRS letters on returns they prepared. To compare expat tax firms, see our guide to choosing the best expat tax service.
How Does Greenback Prepare Your Expat Return?
At Greenback, a CPA or IRS Enrolled Agent prepares your full return, files your FBAR when you add it, and you approve the return before you pay.
- Answer and upload: You answer a short questionnaire and upload documents to a secure portal with 256-bit encryption.
- Your accountant prepares the return: A CPA or Enrolled Agent makes the FEIE vs. FTC choice with you, prepares every form, and files the FBAR if you add it.
- You review and approve: You see the completed return, ask questions, and pay when you approve it.
- We file and stay with you: Your accountant files the return and helps with IRS letters on returns we prepared.
A federal tax return starts at $565, and FBAR filing starts at $125 for up to five accounts. See all services and pricing, or use our Price Estimate Calculator and guide to expat tax preparation costs. Meet our accountants, or contact our Customer Champions with questions.
What Changes When You Switch From Tax Software to a Professional?
When you switch from tax software to an expat tax professional, your accountant starts by reviewing your recent returns and FBARs, then prepares this year’s return with the expat decisions checked.
1. You Bring Your Recent Returns and FBARs
Bring your recent U.S. returns, any FBARs you filed, and this year’s income and account documents. Our guides to filing U.S. taxes without a U.S. address and what expat tax services include cover the rest.
2. Your Accountant Checks for Missed FBARs and Carryovers
Your accountant checks whether any FBARs were missed and whether you have unused FTC to carry forward, and confirms the FEIE vs. FTC choice fits this year’s income.
3. An Earlier Return Can Be Amended
If an earlier return needs correcting, your accountant can file an amended return (Form 1040-X). To claim a refund, the IRS generally requires the amended return within 3 years of filing the original or 2 years of paying the tax, whichever is later.
Frequently Asked Questions
Tax software built for U.S. returns can file a very simple expat return, but it leaves the Foreign Earned Income Exclusion (FEIE) vs. Foreign Tax Credit (FTC) choice, the residency test and the FBAR to you, and no one reviews the return before it is filed. An expat tax professional, a CPA or IRS Enrolled Agent, makes those decisions with you and checks the return before it is filed.
Yes, you can file the FBAR (FinCEN Form 114) yourself through FinCEN’s BSA E-Filing System, separately from your tax return. It is due April 15, with an automatic extension to October 15. An expat tax professional confirms which accounts count toward the $10,000 FBAR threshold and files the FBAR for you.
For most Americans abroad, hiring an expat tax professional is worth it. A CPA or Enrolled Agent compares the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC) for your income, files the FBAR, and reviews the full return before it is filed.
Most Americans Abroad Are Better Served by an Expat Tax Professional
DIY tax software can fill in the forms, but the decisions that shape your U.S. tax, from the FEIE vs. FTC choice to the FBAR, are what an expat tax professional handles with you. If you are a U.S. citizen living abroad, Greenback helps you file with a CPA or Enrolled Agent from start to finish. Learn more about how we help Americans abroad.
Switching From Software This Year?
This article is for informational purposes only and does not constitute tax advice. For advice on your situation, speak with a CPA or IRS Enrolled Agent with expertise in expat taxes.
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