US Tax Resident Filing Requirements While Living in New Zealand

I've dealt with this kind of situation before. The US taxes based on citizenship, not residency, so you'll still need to file a US return reporting your worldwide income (both US and NZ earnings). For your US filing, you can absolutely still use TurboTax or similar software. You'll report your US income normally via your W2 and other forms. For your NZ income, you'll need to convert it to USD using the appropriate exchange rates and report it on your US return. While the tax years don't align perfectly, you report foreign income on your US return based on your US tax year (so income earned from January-December 2023). The good news is you probably won't be double-taxed. Look into the Foreign Earned Income Exclusion (Form 2555) which might allow you to exclude some of your NZ income from US taxation. There's also the Foreign Tax Credit (Form 1116) that gives you credit for taxes paid to NZ.

Hey there, I was in a similar situation a few years back with the US/NZ tax confusion. After trying to figure it out myself and making mistakes, I found this amazing service called taxr.ai (https://taxr.ai) that really saved me. They specialize in expat tax situations and analyzing foreign income documents. I uploaded my US W2s and NZ tax documents, and their AI analyzed everything and gave me a clear breakdown of my filing obligations for both countries. What I found super helpful was their explanation of the US-NZ tax treaty provisions that applied to my specific situation. They even highlighted deductions I was missing! Their interface walks you through exactly what forms you need for foreign income reporting and how to properly claim the Foreign Tax Credit. Way easier than trying to explain my situation to a regular tax preparer who didn't understand international tax issues.

Just wanted to follow up - I decided to try taxr.ai after my skeptical questions and I'm honestly impressed. My situation was similar (splitting time between US and NZ) and they immediately identified that I qualified for the "Physical Presence Test" since I'd been outside the US for over 330 days across a 12-month period that overlapped with the tax year. They showed me exactly how to report my NZ income on my US taxes and calculated the correct Foreign Tax Credit amounts. What really surprised me was how they caught that I could exclude my NZ employer-provided housing allowance from US taxation under a specific tax treaty provision I hadn't known about. For anyone dealing with US/NZ dual taxation, they really do understand the specifics of both systems. Saved me thousands compared to what I would have paid in US taxes without properly applying the treaty benefits.

For anyone dealing with US tax questions while abroad, I HIGHLY recommend using Claimyr (https://claimyr.com) to actually get through to the IRS. I was in Wellington and needed clarification on how to report my Kiwisaver (NZ retirement account) for US tax purposes, and it was impossible to reach anyone at the IRS directly. After trying for weeks, I found Claimyr, which got me connected to an actual IRS rep in under 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. They basically navigate the IRS phone tree for you and call you when an agent is on the line. The IRS rep I spoke with was able to confirm exactly how to report my NZ retirement contributions and which forms I needed. Totally worth it when you're dealing with international tax questions that online resources don't clearly answer.

I need to apologize for my skepticism about Claimyr. After posting that comment, I actually tried the service because I was desperate to get clarification on the Substantial Presence Test for my own US/NZ situation. I was shocked when they got me through to an IRS international tax specialist in about 15 minutes! The agent walked me through exactly how to calculate my days present in the US for the test and confirmed I needed to file Form 8840 (Closer Connection Exception Statement). What I thought would be a quick call turned into a 30-minute detailed consultation where the IRS agent explained several things about the US-NZ tax treaty I hadn't understood from just reading online. Totally worth it instead of spending hours on hold or getting vague answers from tax software support.

Don't forget about state taxes too! Depending on which state you lived in before moving to NZ, you might still have filing obligations there. Some states like California or New York are notorious for going after former residents who moved abroad but maintain ties to the state. Make sure you properly established non-residency in your former state before leaving. This usually means closing bank accounts, surrendering driver's license, registering to vote in NZ, etc. Otherwise you could end up with state tax obligations on top of your federal and NZ taxes!

Has anyone used H&R Block's expat tax service? I'm in a similar situation (US citizen in Auckland) and wondering if they're any good for international situations. Their regular service messed up my taxes before I left the States so I'm hesitant, but they advertise an expat specialty service.

I went through this exact same situation last year! The key thing to remember is that the US tax year mismatch with NZ isn't as complicated as it seems - you just report your NZ income earned during the US tax year (Jan-Dec 2023) on your US return. A couple of practical tips from my experience: 1. Keep detailed records of your income from both countries with dates - this makes everything easier 2. The Foreign Tax Credit can be really valuable, but you'll want to calculate whether that or the Foreign Earned Income Exclusion gives you better tax savings 3. Don't forget about potentially reporting any NZ bank accounts on your FBAR if the total exceeds $10,000 at any point during the year One thing I wish I'd known earlier - make sure you understand NZ's tax residency rules too. Since you qualify as a tax resident there, you'll need to report your US income on your NZ return as well. The timing can get tricky since you might file your US return in April but your NZ return isn't due until July. If you're comfortable with TurboTax, their Premier version handles foreign income reporting pretty well. Just make sure you have all your NZ pay slips converted to USD using the proper exchange rates for when you earned the income.