I used to do my taxes myself – using TurboTax and diving into the deep end of the actual tax forms, searching for and trying to understand IRS regulations for expats, and reading any other legit info I could find. I spent hours on it.
But this year I made a change. I had become more nomadic and wanted experts do my tax return for me. To find the right experts I asked other expats and digital nomads. But most didn’t have a good recommendation for a tax preparer.
I was looking for a tax firm that understands the tax situation of nomads and offers tailored but affordable services. This is when I came across a smaller tax firm called “Online Taxman”, an online CPA firm specializing in taxes for US expats and foreigners who work or invest in the US. They had great reviews.
The Online Taxman offered secured document transfers and all electronic communication, which seems standard in that industry. They also had a competitive flat fee of $500 for a federal tax return, like some of the other providers. But what they offered for that flat fee seemed beyond just filling out the forms and filing the return. So I decided to give them a try.
The Online Taxman has tax accountants all over the world but the main offices are in New York City and in Medellin, Colombia. The managing partner Vincenzo and some of the CPAs spend a couple months a year in Medellin but also move around and live in different countries.
Luckily, I was also in Medellin, so I had the opportunity to meet Vincenzo and one of the CPAs for lunch.
We had a great discussion, and I liked them and their approach. They really understood the US digital nomad tax situation, from their own experience and from working with many nomadic and entrepreneurial clients all over the world.
How my online tax return worked
1. Prep work
After an initial (free) consultation I received an email with the invitation to collaborate on Box.com, a secure online file sharing platform, where all documents are uploaded securely.
I also received a welcome email with links to:
- an onboarding document,
- an initial tax preparation questionnaire, and
- a notification to click when done uploading my documents, so they knew when to get started.
While their website may look a bit outdated in some areas, their onboarding document for new clients is excellent. It explains step-by-step what you need to do, complete with flowcharts and screenshots.
After accepting the Box.com collaboration, the next step is to fill out the tax questionnaire. This questionnaire covers your personal info that is needed for the tax return and also any income and expenses that are not reported on the typical tax forms like W-2 and 1099.
1. Running the numbers
After I uploaded all my info, the Online Taxman did his magic. My CPA checked in with me to clarify something and ask for missing pieces of info. They were thorough and ran two different scenarios on how I could file my taxes. One approach yielded in a lower tax payment but required more paperwork. They described everything and helped me make a decision.
Just as I had uploaded all my tax documents earlier, the Online Taxman also uploaded all the documents to the Box.com account, including a document comparing the scenarios, draft tax returns for my review, and the final tax return. I could review everything right there and download to my computer what I needed.
2. Signing, filing and paying
Signing the tax returns was easy. I received an email with a link for e-signing the documents. All I had to do was click on the link, select my e-signature and click “sign”. Your e-signature can be selected from your name written in a couple different fonts, or you can upload your scanned signature.
After everyone signed, I received another email with a link to the final signed tax return, which I downloaded for my own records.
Paying for the service was equally easy. Again, you receive an email with a link to a secure payment platform, where you enter your credit card information and receive an instant payment confirmation.
The verdict for filing my US taxes with the Online Taxman
Communication with the Online Taxman was straightforward, efficient and responsive. Because I was in Medellin, I had the chance to meet with my CPA in person to review a draft. Usually this meeting would have happened via Skype, because the CPAs and tax clients are usually not in the same location.
All official correspondence was via email. Documents were shared via the secure Box.com account.
I filed my tax return just in time for the expat tax filing deadline last month. As this was the busy season for US expat taxes, I followed up with the tax guys a few times to check on the status. But that could just be my control freak nature. They worked long hours to ensure that all returns were filed before the deadline.
I was very happy with the overall process – as happy as you can be if you owe taxes. I think I know quite a bit about individual income taxes and have done our tax returns myself in the past. I found the Online Taxman very knowledgeable, responsive, and thorough. As I said, they ran two different scenarios rather than just going the quick and easy route. They also gave me valuable tips for the next tax year. I would definitely recommend the Online Taxman to other US expats.
For full disclosure, Vincenzo gave me a greatly reduced fee in exchange for me writing a review post about my experience with the Online Taxman. Independent of that, I was very happy with the work and I will use his firm for my US taxes again next year, even if I have to pay the full fee (which at $500 for a federal return is still very affordable).
Some tips
- I would suggest starting the process early, as they get very busy as the tax deadlines near.
- Also keep in mind the time difference. The Online Taxman has tax accountants all over the world but the main offices are in New York City and in Medellin, Colombia.
Are you dreading the tax season? The deadline for US expat tax returns was June 15th. If you haven’t filed yet, or want to get ahead of taxes for next year, check out the Online Taxman. They are great for US digital nomad taxes. They can also help you with optimizing your virtual business structure for taxes.
