US taxes in Spain: file quickly and easily with Taxes for Expats

You know the feeling?

You’re enjoying another beautiful spring in Spain, happy to live abroad…

But around March you start to have the nagging sensation at the back of your mind that you really should be doing something about your US taxes.

You wonder what your obligations really are and secretly fear you’ve been doing things wrong for years.

You get on TurboTax and (after several days of struggle and misery) send the forms off and hope for the best.

Or if you’re like me and actually run a business abroad, it’s more like:

Worry about taxes constantly, 12 months a year. Attack TurboTax in January, several weeks struggle, misery, etc and then…

Silently weep at the size of the bill.

If you’re an expat or any kind of digital nomad, staying on the right side of tax laws in multiple countries is difficult, time consuming, and has you constantly worried about what you’re doing wrong.

Fortunately, there is hope.

US taxes in Spain… the bane of an expat’s existence

What exactly is a bane? According to my dictionary, “something, typically poison, that causes death“.

Which is almost how I feel about navigating the IRS website and the help sections of TurboTax trying to figure out WTF to do with my US tax return.

However, this year I was invited to file my US taxes in Spain with Taxes for Expats. (Full disclosure: I got the service for free because I’m a famous blogger now. Or something.)

Anyway, I’ve personally resisted using an accountant for several years…

Time which I now understand was completely wasted.

I guess I just assumed that an accountant would ask me all sorts of difficult questions and somehow make my tax bill worse. How wrong I was!

us taxes in spain for expats

Do your US taxes in Spain with professional help… From the beach in Málaga if you want! (Photo by Daniel Welsch.)

I signed up for Taxes for Expats online – the website is taxesforexpats.com – and did their tax questionnaire. Uploaded a few documents and previous year’s returns and sent them off.

The page is fast and easy to use, and the whole thing was much less time-intensive than TurboTax.

And the best part is, I was assigned an actual accountant who (unlike me) knows what he’s doing.

The whole thing went better than I ever could have hoped – my new accountant pointed out some aspects of tax law I never knew existed.

And the whole process was done in a few days.

(Turns out, it’s good to have someone on your side who actually understands how to file your taxes abroad.)

Do I have to file US taxes if I live in Spain?

Good question. The most common answer I’ve found is “probably”.

If you make more than about ten thousand bucks a year, you should file. If your income is over 10k but still low enough (which if you live in Spain as an English teacher or Auxiliar de Conversación, it might be) you probably won’t owe any taxes.

But you should send in your 1040s anyway.

And there are other things you should keep in mind if you’re living abroad. If you have a bank account with more than $10,000 in it, it needs to be reported.

And the new FATCA laws mean that if your foreign assets are over $50,000 you have to declare them too.

Keep in mind that I’m not a tax professional and the law is constantly changing. This information is just a bit of what’s publicly available on the IRS.gov website, and the whole thing can get very complex.

Consult a professional – if you get audited, “I read it on a blog” isn’t going to help you.

That’s why you might need help filing your US taxes from abroad

Ask me how I know…

I’ve been struggling with my US taxes for years, and this experience, with help, is the easiest it’s ever been.

So for good advice from serious professionals, get in touch with Taxes for Expats today.

If you’re looking for a quick, easy way to file your US taxes in Spain, you can’t go wrong.

In the end, I’m getting money back this year.

It’s a tax season miracle!

Fiscally yours,

Mr Chorizo.

P.S. While being an entrepreneur and digital nomad sounds sort of cool and Jamesbondish, there are some downsides too. Stuff they don’t teach you in any $120,000 MBA program. (Ok, ok, who am I kidding? I have no idea what they teach in an MBA program. I’m just a guy who makes stuff, not an official, licensed “businessman” with a 6-figure debt to pay off.)

P.P.S. How are you dealing with your US taxes in Spain? Let me know, right here in the comments…

Daniel
 

How did I end up in Madrid? Why am I still here 12 years later? Excellent questions. With no good answer... Anyway, at some point I became a blogger, bestselling author and contributor to Lonely Planet. So there's that. Drop me a line, I'm happy to hear from you.

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