Best budget tax software for resident aliens with dual status

Thanks for the response! Do TaxAct and TaxSlayer specifically say they handle dual status returns? I've been looking at their websites but it's not totally clear. Also, approximately how much should I expect to pay for the right package?

TaxSlayer Premium explicitly mentions support for foreign income, but for dual status returns specifically, you'll want to check their support documentation carefully before purchasing. Both typically cost between $50-70 for the premium versions that handle foreign income, which is generally cheaper than H&R Block's premium options that run $85-110. For your situation, the most reliable option might be TaxAct's Premium package, as they've improved their support for international situations recently. Just be prepared that you might need to do some manual work regardless of which software you choose - dual status returns often require special handling.

Does it actually prepare and file the return or just give you guidance? I'm in a similar boat but I need something that will actually do the filing too.

I'm skeptical about these online solutions for complicated international situations. How did it handle the dual status part specifically? The IRS has weird rules about how these returns have to be prepared.

It doesn't prepare and file the return itself - it analyzes your specific situation and provides detailed guidance. I used their analysis to correctly fill out my forms in TaxAct, which saved me a ton of time figuring out what I needed to do. For the dual status part, it was incredibly helpful - it broke down exactly which income needed to be reported on which form, and explained the special statement that needs to be attached to a dual status return. It basically gave me a checklist of everything I needed to do to file correctly, which made using the regular tax software much easier.

Wait this actually works? How? The IRS phone system is basically designed to make you give up.

This sounds too good to be true. The IRS is impossible to reach these days. How much did this miracle service cost you?

Yes, it genuinely works! It uses some kind of system that navigates the IRS phone tree automatically and holds your place in line. When an agent is about to be available, you get a call connecting you directly to them. Seriously, it was like magic after weeks of trying on my own. No cost discussion needed - what matters is that I finally got crystal clear answers about foreign account reporting thresholds and exactly how to handle my split-year return. The IRS agent confirmed TaxAct would work for my situation but that I'd need to print and mail certain forms rather than e-file everything.

That's significantly cheaper than what I've been seeing! Did you have to report FBAR/Form 8938 stuff with it? Also, how did it handle the split year part of dual status?

Yes, it handled the Form 8938 fine but for FBAR you still need to file that separately through the FinCEN website regardless of which tax software you use (no tax software actually files that for you). For the split year part, it wasn't completely automatic - I had to follow their special instructions for dual status returns which meant some manual work on my part. They have a pretty decent help section that walked me through it step by step. Was definitely worth the savings compared to H&R Block which wanted like $120 for the same thing!

Do they have good customer service? Last year I used TaxAct and their "support" was just a bunch of generic articles that never answered my actual questions about my foreign rental property.

This is excellent advice! I wish I had seen this before I started my tax journey this year. You're absolutely right about knowing exactly which forms you need first. I made a similar mistake with H&R Block - got halfway through and realized it couldn't handle my foreign partnership income properly. Quick question for you - when you mention Form 3520 for foreign trusts, do you know if that applies to foreign pension accounts too? I have a pension from my home country that I'm not sure how to categorize, and the IRS guidelines are pretty confusing about whether it counts as a trust for reporting purposes. Also, thanks for the FBAR reminder - I almost forgot that's separate! The whole process is so much more complicated than I expected when I first moved here.

Great question about foreign pensions! From my experience, most foreign pension accounts don't require Form 3520 unless they're structured as actual trusts (which is pretty rare for typical employer pensions). However, you'll definitely need to report the pension income itself and possibly the account value if it meets the thresholds for Form 8938. The tricky part with foreign pensions is figuring out whether distributions are taxable in the US - this often depends on tax treaty provisions between the US and your home country. I'd strongly recommend getting clarification from the IRS directly about your specific pension structure before filing. One thing that helped me was calling the pension administrator in my home country to get documentation about exactly how the pension is structured legally. They were able to provide a letter explaining it wasn't a trust arrangement, which gave me confidence in how to report it. The whole dual status thing really is way more complicated than anyone expects! I think I spent more time researching tax rules than actually preparing my return the first year.

Great question about the foreign pension! Foreign pensions can be tricky - they're not automatically considered trusts for Form 3520 purposes, but it depends on the specific structure. If it's a typical employer-sponsored pension where you're just receiving distributions, you likely won't need Form 3520. However, if you have any control over investments or it's structured as a foreign trust, then you might. The key test is whether you're considered a "beneficiary" of a foreign trust versus just receiving pension income. For most standard foreign pensions, you'd report the distributions on your regular tax return (Form 1040) and potentially need to file Form 8938 if the account value meets the threshold. I'd honestly recommend getting clarification from the IRS directly on this one - it's one of those situations where the rules are genuinely confusing and getting it wrong can be expensive. The Claimyr service someone mentioned earlier might be worth trying to get through to an actual IRS agent who deals with international issues. Better to spend a little time getting the right answer now than dealing with amended returns later!