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Taxes

13 years ago
Here is another text I wrote. How to file taxes when you live in Ecuador and receive passive income (pension, federal benefits, 401K distributions, dividend and interest distribution, etc) from USA.

You don't have to go to the States at tax time to file your return.
When you move to Ecuador - change your US address for Ecuadorian address on your passive source income (pension, federal benefits, 401K distributions, dividend and interest distribution, etc) this is so you don't have to file a state tax return where you used to live.
All these seemingly complicated matters come down to one simple, single paper - form 1099: 1099R, SSA1099, 1099 INT, 1099 DIV.
At tax time you will receive 1099s at your Ecuadorian address. Go to any internet cafe and scan these 1099s, attach it to an email, and send it to yourself.
Than go online to HR Block at Home - Premium, on-line tax prep software, and enter all the info (1099s). We also have rentals, so we have to file a schedule E.
HR Block assigns a tax preparer to check our return and I send her the scanned documents: 1099s, bank's docs(form 1098). and so on - HR Block software has an option to do it.
HR Block at Home - Premium is user friendly and you can talk to your tax preparer by Skype, if you have any questions.
They will ask you for a US based address to send the form (form 8879 IRS e-file Signature Authorization) for you to sign. We usually ask our tax prep NOT to send our full tax return to our US based address.
After tax prep. is completed, they e-file it for you. They send form 8879 to our US based address and when we come over to Minneapolis we sign it and send it back to HR Block, an envelope is usually included.
We've filed our taxes this way three times already. This year we paid $79.95 for the tax prep, only filed a federal tax return, since we don't live in MN anymore and our rental doesn't produce enough income to meet MN filing requirements.
If you are due to receive a tax refund - you can choose a direct deposit option, if you have to pay - there are a few options to pay, including paying online.

I worked for HR Block as a tax preparer (2004-2006), three seasons.
Now I am just a happy customer, no other connections.

http://dayinquito.blogspot.com/
http://quitorental.blogspot.com/

Universal Tax Professionals
Universal Tax Professionals
William Russell
William Russell

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Get a quote for international health insurance from our partner, William Russell.
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Universal Tax Professionals
Universal Tax Professionals

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