What expat tax software must actually handle
Standard U.S. tax software is built for domestic filers. Expat returns require a specific set of forms and capabilities that many tools handle poorly, partially, or not at all. Before evaluating any software, confirm it supports the forms relevant to your situation.
| Form / Filing | What it is | Who needs it |
|---|---|---|
| Form 2555 | Claims the Foreign Earned Income Exclusion (FEIE) | Anyone claiming FEIE — most salary expats |
| Form 1116 | Calculates the Foreign Tax Credit (FTC) | Anyone using FTC instead of or alongside FEIE |
| Form 8938 | FATCA — Statement of Specified Foreign Financial Assets | Expats with foreign accounts above FATCA thresholds |
| FinCEN 114 (FBAR) | Report of Foreign Bank and Financial Accounts | Expats with foreign accounts exceeding $10,000 at any point in the year |
| Schedule SE | Self-employment tax calculation | Self-employed expats (FEIE does NOT eliminate SE tax) |
| Form 8833 | Treaty-based return position disclosure | Expats taking treaty positions — rarely handled by software |
Software comparison at a glance
| Option | Form 2555 (FEIE) | Form 1116 (FTC) | Form 8938 (FATCA) | FBAR (separate) | SE abroad | Approx. cost |
|---|---|---|---|---|---|---|
| TurboTax (Deluxe/Premium) | ✓ | ✓ | ~ | ✗ (file separately) | ~ | $89–$169 |
| H&R Block (Premium) | ✓ | ✓ | ~ | ✗ (file separately) | ~ | $85–$145 |
| FreeTaxUSA | ✓ | ✓ | ✗ | ✗ (file separately) | ~ | $0–$15 |
| Expat-specialist service | ✓ | ✓ | ✓ | ✓ (included) | ✓ | $300–$800+ |
| IRS Free File (basic) | ~ (provider-dependent) | ~ | ✗ | ✗ (file separately) | ✗ | $0 (income <$89k) |
✓ = fully supported · ~ = partial or limited support · ✗ = not supported or not applicable
Self-file options reviewed
TurboTax (Deluxe or Premium)
TurboTax is the most widely used tax software in the U.S. and it does support Form 2555 (FEIE) and Form 1116 (FTC) in its Deluxe and Premium tiers. The interview-style interface walks you through the basics competently.
The limitations show up in complexity. FATCA reporting (Form 8938) is technically included but the guidance around thresholds and what to report is thin. Self-employment deductions for home-office or foreign business expenses require you to already know what you are doing — the software will not prompt you correctly. There is no FBAR filing path at all.
- Strong interview flow for straightforward returns
- Form 2555 and Form 1116 handled well
- Widely available, easy to use
- Live expert add-on available if needed
- No FBAR filing — must file FinCEN 114 separately
- Thin on expat-specific guidance and edge cases
- Not suitable for self-employment abroad or treaty positions
- FATCA support is present but guidance is minimal
H&R Block (Premium)
H&R Block's Premium product covers the core expat forms — Form 2555 and Form 1116 — and is priced competitively against TurboTax. The interface is slightly less polished but the underlying form support is comparable.
Like TurboTax, H&R Block does not file the FBAR. It also does not handle complex self-employment situations well, and has no structured path for foreign housing exclusion calculations beyond the basics. If you have foreign pension income, foreign business income, or treaty positions, neither mainstream product is the right tool.
- Competitive pricing against TurboTax
- Form 2555 and 1116 supported
- In-person office option if needed
- No FBAR filing — file FinCEN 114 separately
- Limited expat-specific prompts and guidance
- Not built for complex foreign income
FreeTaxUSA
FreeTaxUSA is genuinely free for federal returns (state costs $15). It supports Form 2555 and Form 1116, which surprises many people given the price. For a salaried expat with no foreign accounts exceeding $10,000, no FATCA obligations, and a simple FEIE claim, it works.
The interface is bare-bones. There is no Form 8938 support. There is no guided expat workflow. If you know your situation well and just need a tool to enter the numbers and generate the PDF, it is a reasonable option. If you are not confident in what you need to file, the lack of guidance is a liability.
- Free for federal returns ($15 state)
- Supports Form 2555 and 1116
- Straightforward for those who know their situation
- No Form 8938 (FATCA) support
- Minimal expat-specific guidance
- Not suitable for any complex foreign situation
- No FBAR path
Specialist expat tax services
Specialist expat tax services — typically staffed by CPAs or Enrolled Agents (EAs) with international tax experience — charge more than self-file software but offer substantially more coverage. A quality specialist service will handle your federal return, FBAR, FATCA, and all treaty-related positions in a single engagement.
The market includes both large-scale services that handle volume at moderate prices and smaller boutique firms that charge more for genuinely personalized attention. The right choice depends on your complexity.
Typical price ranges for specialist expat services in 2026 run from around $300 for a straightforward single-filer return to $600–$800 for a return with self-employment, multiple income sources, and FBAR filing included. Complex situations — foreign corporation ownership, PFIC investments, streamlined filing — typically start higher.
The FBAR problem every expat filer misses
The FBAR (FinCEN 114) is the single most common gap in expat tax compliance. It is not part of your tax return. It is filed separately with the Financial Crimes Enforcement Network (FinCEN) through the BSA E-Filing System, and it is due by April 15 each year (with an automatic extension to October 15).
You are required to file the FBAR if you had a financial interest in or signature authority over any foreign bank account or financial account and the aggregate value of those accounts exceeded $10,000 at any point during the calendar year. This threshold is low enough to catch almost every expat with a local bank account abroad.
Most mainstream tax software does not file the FBAR. When you use TurboTax, H&R Block, or FreeTaxUSA and mark "yes" to having foreign accounts, the software typically points you to FinCEN's website and stops there. You must file the FBAR separately. If you use a specialist expat service, confirm explicitly that FBAR preparation is included — some services charge it as an add-on.
To file the FBAR yourself, visit bsaefiling.fincen.treas.gov. The form itself is straightforward if you have your account numbers and highest balances for the year. The complexity comes from knowing whether you need to file and which accounts to include — particularly accounts where you have signature authority but not beneficial ownership (such as employer or family accounts).
When software is not enough
Software handles rules-based filing well. It struggles with judgment, complexity, and situations where the wrong answer triggers a penalty larger than the entire cost of a specialist. Here are the situations where paying for a CPA or EA is clearly the better call.
Self-employment abroad. The FEIE excludes foreign earned income from income tax but does not eliminate self-employment (SE) tax. If you are self-employed abroad, you still owe 15.3% SE tax on net business income — and you may be able to reduce that through totalization agreements, foreign business expense deductions, or a foreign corporation structure. Software will not guide you through those options. See the Self-Employment Abroad guide for the full picture.
Foreign business ownership. If you own or have a controlling interest in a foreign corporation or partnership, you may have Form 5471, Form 8865, or PFIC reporting obligations (Form 8621). These are specialist-level forms. Self-filing them incorrectly carries substantial penalties.
Delinquency or non-compliance. If you have not been filing U.S. tax returns or FBARs, the IRS Streamlined Procedures offer a penalty-free path back. Using software to self-prepare a streamlined submission is possible but risky — the accuracy of the amended returns and the certification statements matter significantly. A qualified specialist is worth the cost here.
Tax treaty positions. If you are taking a treaty-based position to reduce or eliminate U.S. tax on certain income, you must disclose that position on Form 8833. No mainstream software supports Form 8833 or the treaty analysis needed to determine whether a position is correct.
First-year elections and timing. If you arrived abroad mid-year and are trying to optimize your qualifying period for the FEIE using a rolling 12-month window, the timing strategy matters. A missed election or wrong period selection can cost you the entire exclusion for the year.
What expat tax filing actually costs
| Filing approach | Best for | Typical cost range |
|---|---|---|
| IRS Free File | Very simple returns, income below $89k | $0 |
| FreeTaxUSA | Simple FEIE/FTC, no FATCA | $0–$15 |
| TurboTax / H&R Block | Standard expat return, FEIE or FTC | $85–$169 |
| Expat-specialist service (volume) | Standard–moderate complexity, FBAR included | $300–$500 |
| Boutique expat CPA firm | Complex situations, high-touch service | $500–$1,200+ |
| Full-service tax attorney | Compliance issues, willful FBAR violations, IRS disputes | $1,500+ |
The most common mistake expats make is underinvesting in their first year abroad. The year you establish foreign residency, first elect the FEIE, and set up your FBAR filing history is the year where errors have the longest-lasting consequences. Paying for a specialist in year one and self-filing in subsequent years once your situation is stable is a sound approach for many expats.
The FEIE vs FTC guide breaks down exactly when each strategy wins — and when combining them backfires.
Frequently asked questions
Can I use TurboTax to file as a US expat?
TurboTax can handle straightforward expat returns — it includes Form 2555 for the FEIE and Form 1116 for the Foreign Tax Credit. However, it lacks FBAR filing capability (FinCEN 114 must be filed separately through BSA E-Filing), and its expat-specific guidance is limited. For simple situations, it can work. For complex returns involving multiple income streams, foreign business ownership, or active FBAR/FATCA obligations, an expat-specialist CPA is typically a better investment.
What is the cheapest way for a US expat to file taxes?
IRS Free File is available if your income is below $89,000, though expat-specific forms may not be fully supported in all Free File providers. For straightforward returns, self-filing via tax software is most affordable. Expat-specialist services are more expensive but often worth the cost if your situation involves treaty positions, self-employment, or complex foreign income.
Does any software file the FBAR automatically?
No. The FBAR is not a tax form — it is filed separately with FinCEN through the BSA E-Filing System. Some professional expat tax services include FBAR preparation in their package. If you self-file your tax return, you must also separately file the FBAR by April 15 (automatic extension to October 15).
When should I use a CPA instead of tax software for my expat return?
Use a CPA or EA when your situation includes: self-employment income abroad, ownership of a foreign corporation or partnership, treaty-based positions, PFIC investments, streamlined filing or voluntary disclosure, FBAR or FATCA reporting complexity, or if you have been non-compliant and need to catch up. Software is appropriate for simple employed-abroad situations where the FEIE is the primary form needed.
Is expat tax software worth it compared to a specialist service?
It depends on complexity. Software works well for straightforward cases — employed abroad, single source of income, FEIE or basic FTC claim. A specialist service is worth the premium when your return involves self-employment, foreign business ownership, delinquency, or situations where getting it wrong triggers penalties larger than the cost of professional help.
