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Why is this needed?

Passive Foreign Investment Companies (PFICs) must be reported at the fund level on Form 8621.

What does this mean?

  • Each fund being reported will have its own copy of Form 8621.
  • Gains and losses are calculated per fund. This means the loss of one fund will not affect the gain of another fund.

How does Form 8621 work?

  • Form 8621 requires us to track the USD cost basis (using the spot rate) of each purchase to determine any applicable capital gains and losses.
  • Additionally, all income (distributed or reinvested into the fund) is also seen as taxable income.

Why do I only need to do this sometimes?

  • If you invest in US-regulated mutual funds, the mutual fund's financial institution will handle this reporting and send you a US Tax Form 1099.
  • For foreign-pooled funds, you are responsible for reporting this.
    (But you have us to help!)

How to start

We will need a transaction history for all your foreign mutual funds, dating back to their initial investments.

MyExpatTaxes-PFIC-Transaction-Template Download
  1. Download the “PFIC Transaction Template” spreadsheet we’ve provided above
  2. Add your complete transaction history to the template, including:
    • All purchases
    • All dividends, reinvestments, and other distributions of any kind
    • All sales

Reading the Transaction Template

The template should be filled out with rows of your transaction information. The columns are categorized with the following:

  • Investment:  
    This is the fund name.
  • Date
    This is for the INITIAL date of a transaction.
    (Even if the transaction is processed or booked later.)
  • Transaction
    This is for listing the type of transaction. We suggest you limit your transaction history reporting to the following transaction types:
Transaction Type Definition
Purchase Buying initial or additional units
Distribution Earnings that are distributed (paid out). These earnings are not reinvested (automatically used to purchase additional units of the fund).
Reinvestment When the fund's earnings are automatically used to purchase additional fund units. These earnings are not distributed (paid out).
Sale Selling units
  • Units:
    This is the number of shares added or removed.
    This is required when there is a purchase, reinvestment, or sale.
    This is not required for distributions, as there should be no change in number of units.
  • Original Amount:
    This is the monetary value of the transaction in the original (local) currency.
Transaction Type How to calculate
Purchase Total purchase price = (purchase price per unit) x (number of units purchased)
Distribution The total income earned (dividend, interest, etc.) on this date.
Reinvestment Total income earned (dividend, interest, etc.) on this date used to purchase additional units.
Sale Total sale price = (sale price per unit) x (number of units sold)
  • Local Currency:
    This is the original (functional) currency of the fund.
  • Exchange Rate/USD:
    No need to fill this out; we fill this out for you!
  • Reported this transaction on a US Tax Return:
    This is an optional column.
    This informs us if you reported this PFIC transaction in previous years.
    Typically, we could figure this out based on your prior year’s tax returns.

Without a reliable, completed transaction template,
we cannot accurately create Form 8621 for you.

No one can. This information is what is needed to begin PFIC reporting.
We can only set up your PFIC reporting Form 8621 at our affordable rate if you provide a completed transaction template. Should you refuse or fail to do this, we must refer you to a PFIC partner. PFIC partners charge $165+/hour to translate your fund statements into a template like ours.


Example 1

From an ISA Stock & Shares Spreadsheet

  1. Income Distribution = Distribution of 314.22 GBP on 2023-12-07
  2. Income Distribution = Distribution of 136.86 GBP on 2023-07-06
  3. Rebalance Out = Sale of 41.719 units for 15.27 GBP per unit = 637.05 GBP on 2023-04-13
  4. … Rebalance In = Purchase of 2,152.74 units for 9.12 GBP per unit = 19,633 GBP on 2020-03-17

Example 2

There are no reinvestments in this example, but if a transaction were used to repurchase units, it would look like a Reinvestment of 135.86 GBP on 2023-07-06 to purchase X units.

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Not to worry! We can have you started in no time!

Click 'Get Started'

In the upper right corner of the screen, you can click the "Get Started" button to create an account for free.
Once your account is created, you can save your progress and return anytime you like. Returning to your progress is just as easy as clicking "Get Started" and signing back in.

If you've already made an account with us, click the "Login" button in the top right to return to your account.

Filling out some basics

After signing in to your account, you'll be guided through a step-by-step process.
We'll need some basic information about you and your tax situation, then our system can help you to tackle the deeper questions about your tax filings to help ensure you've not missed anything.

Upgrading

Everyone starts with the Standard, "Do-It-Yourself", process.
Some forms may require an upgrade to a higher tier for us to complete, due to their complexity.
For more information about pricing, see our pricing guide and comparisons.

All upgrades and add-ons are also displayed again before your final checkout and purchase.

At any point in the process, you can choose to upgrade for additional support.
This can even include a 30 minute call with one of our professional tax experts to go over your unique situation.
Our tax team is made up of real, actual people and not any AI.

The highest tier allows you to fill out some basics, upload your relevant documents, and then relax!
After your scheduled 30-minute call, we will contact you within 24 hours with a draft of your tax return or any outstanding follow-up needs.

For more information, you can read about what happens after upgrading.

After checkout

Once you've approved of everything and paid at checkout, your draft tax return(s) will be generated. You can provide feedback on your draft, raise questions, and have confidence that everything is in order.
And last but not least, with your authorization, we finalize your return!

Sending off the paperwork

You'll be asked to confirm the results and calculations, then our expert tax team will e-file your tax returns to the IRS.
Should you desire or need, you can also print and mail your tax returns the old-fashioned way via postal mail.

Ta Da! It's really that easy.

Now you can get back to the things that are way more fun than doing your taxes!

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You can use two ways to reach out to us via Live chat or send us an email:

If you need help in real-time, you can reach us thru our Live Chat within the MyExptTaxes App, you’ll just need to select the chat icon on the lower part of the navigation panel.

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You’ll be asked for your name and email address (that you used to sign up with us MyExpatTaxes) to proceed with the chat, and one of our Support Team will be assigned to you to help you in case you get stuck.

stuck during filing process contact

You may also send us an email at team@myexpattaxes.com or use our Contact Form on our website.

We’ll get back to you within 24 hours if it’s on weekdays. Our Live chat is available on our app about 12-14 hours per business day so we can cover all the time zones.

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We can help you with that. Our intuitive expat tax software allows you to report financial assets simply and smoothly. Financial assets you can report include: Cash, bank account deposits, stocks, bonds, mutual funds and any other non-US financial accounts.

How to enter it through our app?

Once you go through our question, you’ll reach a section labeled as FBAR and FATCA:

fbar and fatca myexpattaxes

Step 1: Confirm if you have any non-US financial accounts:

foreign bank account report myexpattaxes

Step 2: Confirm if you want to file with us. Please note it’s already included in the fee.

Step 3: Add all your account details:

If you have anymore questions, feel free to contact our tax team! They are standing by to assist.

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At MyExpatTaxes, with the Rewards Program, we offer two ways to save on filing. We thank all our customers for their loyalty!

Gaining Credits From Being A Returning Customer

Each year that a customer returns to MyExpatTaxes, they will receive 25 credits added to their account starting in 2021.

Therefore, if you filed your US expat taxes with MyExpatTaxes in 2021, you will receive 25 credits added to your account in 2022.

Sending Referral Links

Another way you can save with MyExpatTaxes is by sending referral links. After you make your purchase with MyExpatTaxes, you will receive a referral link that you can send to your friends.

This link will be shown after checkout but is also to be found in your invoice. You can also access it by clicking on the gift icon in the top menu.

What is the discount I will get?

When you send a referral link to a new customer with MyExpatTaxes, they will receive 20% off their purchase with us, and you will get 20 credits added to your account.

Make sure your credit is tracked.

Make sure your credit is tracked by ensuring that your friend uses this link when making their account.

What are Credits?

1 credit = 1 unit of currency you choose to make your payment in.
Currently, MyExpatTaxes offers EUR and USD. Therefore, 1 credit = 1 USD or 1 EUR.

Learn more about the MyExpatTaxes Rewards Program.

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Check out using the "File Your Return" navigation panel and select the "Checkout" option.

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With MyExpatTaxes, you’re in complete control. You can save, go back, edit & update anytime. During the process, we’ll also be giving you overview summaries to check and confirm your input.

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Within the MyExpatTaxes / MyExpatFBAR app, there is no ability to view the log of changes. However, you can always edit your information as needed. 

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If you don't yet have the document, you may just skip the question and come back once the document is available. If the upload is required, you can just upload a blank word document to bypass the question.

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When this occurs, it is normally due to your browser. We recommend trying different browsers or downloading the PDF and opening it up with Adobe Acrobat: https://get.adobe.com/reader/.

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MyExpatTaxes posts all of our expat tax video tutorials on our YouTube Channel. Be sure to subscribe and click the bell '🔔' to be notified when fresh videos are posted.

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We mark which questions are required based on your unique tax situation.

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As long as it has not been submitted to and accepted by the IRS, you can still make some changes. If it was submitted and accepted by the IRS, you can always make an amendment, however this may require you to upgrade to the Professional or higher tiers of support.

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1 - Make sure you’ve uploaded all the necessary signed consent forms.

If you are e-filing an FBAR or state return, you should have received a link via email to give your consent to e-file. Download the attached PDFs. Print, sign, and then re-upload the forms. (High-resolution phone photos are fine.)

2 - Make sure our preparers aren’t waiting on an answer from you.

If you are filing state tax returns and have given all consents, it could also be that a state tax preparer has reached out via email with an additional question about your return. Check your inbox in case you have a message that may have been overlooked.

3 - Did you get a confirmation?

After providing all consents, required signatures, and answers to additional questions, you should receive an email when your federal and state tax returns have been accepted, along with a reference submission ID for your records.

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We understand your hesitance. As we're dealing with sensitive data, we also have customers that are not comfortable providing all their information online. Your Social Security Number is required for filing your US taxes and match with the IRS record. No worries though, we are fully compliant with all strict GDPR measures, and all your data is safe.

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If you made significant changes within the app, your tax forms may need to be reviewed by one of our tax professionals. Then, they will be regenerated/re-finalized so the changes will reflect in the final forms.

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If you are Streamlining, then these prior year returns cannot be e-filed. Please use the included Tax Filing Instructions (2nd page in your tax package) to paper mail your return. If you are filing prior years outside of the Streamlining Procedure, we may be able to e-file your 2019 return (2018 and prior cannot be e-filed).

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The MyExpatTaxes software asks you to complete 4 years of tax returns because it includes the current year as well.

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In order to provide consent for efiling 2022/2021 Tax Returns, you will need to either:

  • Use the Self-Select Method and enter a PIN and your AGI from your last year's tax return
  • Sign Form 8897

The most convenient way is to use the Self-Select Pin Method. So how do you find your AGI from your 2021/2020 Tax Return?

For those efiling 2022 Returns

Your 2021 Adjusted Gross Income (AGI) is found on Form 1040, Page 1, Line 11.

In this case, your AGI would be 26,460.
Which you would enter on our Efiling Consent Page: app.myexpattaxes.com/wizard/efilingconsentselfselectpin/

For those efiling 2021 Returns still

Your 2020 Adjusted Gross Income (AGI) is found on Form 1040, Page 1, Line 11.

In this case, your AGI would be 95,564.
Which you would enter on our Efiling Consent Page: app.myexpattaxes.com/wizard/efilingconsentselfselectpin/

Married Filing Jointly

Keep in mind, if you filed jointly with a spouse last year, then you BOTH have the same AGI.

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To report your self-employment income as common-law employee salaried income:

1) Delete your self-employment income entry

2) Select "Foreign Employment Compensation" on the Foreign and Other Income Section

3) Enter your self-employment income as salaried income on the "Foreign Employment Compensation" section when it pops up.

Keep in mind: You need to report your gross income and cannot deduct any business expenses.

Attention! If you receive a 1099-MISC or 1099-NEC, filing as a common-law employee may trigger the IRS to audit you and your employer. Instead, you should talk to your employer to determine if you should be getting a W-2 instead of 1099-MISC/1099-NEC. If your employer disagrees and you are confident you should be classified as a common-law employee, then:

  1. File Form SS-8 https://www.irs.gov/pub/irs-pdf/fss8.pdf with the IRS directly
  2. Request that Form 8919 be included in your Federal Tax Return at the Feedback Section to withhold your 1/2 of Social Security Taxes (you will need to be in the Professional Tier)

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