Quick answer: MyExpatTaxes is the most complete DIY option, covering FEIE, the Foreign Tax Credit, FBAR, and even state returns starting around $119. Expatfile is the fastest and cheapest choice for a straightforward federal-only return with foreign income. If your situation is simple W-2 income with no foreign accounts, general-purpose software like TurboTax can still work, but it lacks dedicated FBAR filing and several expat-specific forms.
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Why Regular Tax Software Often Falls Short for Expats
US citizens and green card holders living or working with foreign income must report worldwide income to the IRS regardless of where they live, and often need specialized forms: Form 2555 (Foreign Earned Income Exclusion), Form 1116 (Foreign Tax Credit), and FinCEN Form 114 / FBAR for foreign bank accounts over $10,000. General-purpose software like TurboTax and H&R Block support some of these forms in higher tiers, but typically lack a dedicated FBAR filing tool and only partially support self-employment income earned abroad.
What to Look For in Expat Tax Software
- FEIE and FTC support (Forms 2555 and 1116) to avoid double taxation on foreign income
- Built-in FBAR filing rather than a separate manual process
- Multi-currency conversion for income earned in foreign currencies
- State return support, if you still have filing obligations in a US state
- Access to a real tax professional for complex situations like foreign self-employment or PFICs
Best Tax Software for Expats Compared
| Software | Best For | Starting Price | FBAR Included? |
|---|---|---|---|
| MyExpatTaxes | Most complete DIY coverage, including state returns | ~$119+ | Yes, on all plans |
| Expatfile | Fast, affordable federal-only filing | ~$119 | Yes |
| H&R Block Expat Tax | Established brand with expat-specific tier | ~$119 | No dedicated tool — filed separately |
| TurboTax | Simple W-2 income, no foreign accounts | Varies by tier | No dedicated tool |
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MyExpatTaxes: Best Overall for DIY Filers
MyExpatTaxes stands out for including FBAR forms (114 and 8938) on every plan, plus support for state returns — a feature most competitors skip entirely. It supports both the Foreign Earned Income Exclusion and Foreign Tax Credit, with add-ons available for more complex situations like PFIC reporting (Form 8621) or foreign corporation filings (Form 5471) on its Premium tier.
Expatfile: Best for Fast, Simple Federal Filing
Expatfile is built around a clean, guided interview that typically takes well under an hour for a straightforward return, and automatically applies the FEIE or FTC — whichever benefits you more. The tradeoff is that it doesn’t currently support state returns or heavier international forms, making it best suited to expats without complex foreign business or investment structures.
H&R Block Expat Tax: Best for Brand Familiarity
H&R Block’s expat-focused tier includes core forms like 1116 and 2555 starting around $119, giving expats a recognizable brand with a path to escalate to a live tax professional if needed. It does not include a dedicated FBAR filing tool, so that reporting typically needs to be handled separately.
TurboTax: Best for Simple Situations Only
If your only foreign connection is a W-2 job abroad with no foreign bank accounts over $10,000, TurboTax’s Premier or Self-Employed tiers can technically handle Forms 2555 and 1116. However, it lacks a dedicated FBAR tool and only partially supports self-employment income earned abroad, so anyone with more complex situations should look at an expat-specialist option instead.
When You Should Use a CPA Instead of Software
If you own a foreign business, hold foreign investments subject to PFIC rules, or have income across multiple countries with treaty considerations, no DIY software fully replaces a qualified CPA or Enrolled Agent with cross-border tax experience. The cost is higher, but for genuinely complex situations, professional preparation reduces the risk of costly errors.
Frequently Asked Questions
Do expats really need to file US taxes every year?
Yes. US citizens and green card holders must report worldwide income to the IRS regardless of where they live, even if no tax ends up being owed after applying exclusions and credits.
What’s the difference between the FEIE and the Foreign Tax Credit?
The Foreign Earned Income Exclusion (Form 2555) excludes a set amount of foreign earned income from US tax, while the Foreign Tax Credit (Form 1116) credits taxes already paid to a foreign government. Which one benefits you more depends on your income level and the tax rate in your country of residence.
Do I need to file an FBAR?
If the combined value of your foreign bank accounts exceeded $10,000 at any point during the year, yes — this is filed separately from your tax return via FinCEN Form 114.
Can I use regular TurboTax if I live abroad?
You can, but only for simple situations. TurboTax lacks a dedicated FBAR filing tool and only partially supports self-employment income earned abroad, so more complex situations are better served by expat-specialist software.
How much does expat tax software typically cost?
Most expat-focused platforms start around $119 for a federal return, with add-ons for state returns, self-employment forms, or professional review pushing the total higher depending on complexity.
Disclaimer
This article is for informational and educational purposes only and does not constitute tax, financial, or legal advice. Software features and pricing are set by each provider and are subject to change — always verify current details directly on the provider’s website. We are not a tax preparer, CPA, or licensed financial advisor. Consult a licensed tax professional regarding your specific situation.
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