For a return that needs Form 1116, Form 2555 and an FBAR workflow, H&R Block’s Expat Tax Software is the clearest published fit. TaxAct Premier is a reasonable lower-complexity alternative when investment income and FBAR filing are central, while TurboTax can work only after you verify that the exact edition and tax year include every foreign schedule you need. None of these products removes your obligation to determine whether Form 8938 or FinCEN Form 114 applies; an FBAR is a separate filing from your federal income-tax return.
Use software for a straightforward foreign-income return with well-documented accounts and income. Compare an expat CPA or enrolled agent when your facts include PFICs, foreign trusts, treaty positions, several countries, a foreign business, a large investment portfolio, late filings or uncertain residency.
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What “foreign income and accounts” can require
Foreign activity can create several separate reporting duties. The income-tax return reports taxable income and calculates tax, while information forms disclose certain assets or accounts. Treating them as one task is the most common way a filer misses a requirement.
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| Requirement | What it does | Typical trigger or use | Where it is filed |
|---|---|---|---|
| Form 1116, Foreign Tax Credit | Calculates a credit for eligible foreign income taxes. | You paid or accrued eligible foreign tax and want to claim a credit rather than leave the tax unaccounted for. | Attached to the federal income-tax return. |
| Form 2555, Foreign Earned Income | Claims the foreign earned income exclusion and, where eligible, a foreign housing benefit. | You meet the tax-home requirement plus either the bona-fide-residence test or the physical-presence test. | Attached to the federal income-tax return. |
| Form 8938, Statement of Specified Foreign Financial Assets | Discloses specified foreign financial assets above applicable thresholds. | Asset values exceed the threshold for your residence, filing status and year. | Attached to the federal income-tax return. |
| FinCEN Form 114 (FBAR) | Reports foreign financial accounts to the Financial Crimes Enforcement Network. | The combined maximum value of reportable foreign financial accounts exceeded $10,000 at any time during the calendar year. | Filed electronically as a separate FBAR, not attached to the tax return. |
The IRS states that you report accounts by filing a Report of Foreign Bank and Financial Accounts (FBAR) on FinCEN Form 114. The $10,000 test is an aggregate maximum balance across accounts, not a per-account test, and it can apply even when the accounts earned no taxable income.
#1 Best Overall
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- TurboTax Desktop Edition is download software which you install on your computer for use
- Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
- Recommended if you own a home, have charitable donations, high medical expenses and need to file both Federal & State Tax Returns
- Includes 5 Federal e-files and 1 State via download. State e-file sold separately. Get U.S.-based technical support (hours may vary).
- Live Tax Advice: Connect with a tax expert and get one-on-one advice and answers as you prepare your return (fee applies)
Form 8938 does not replace an FBAR. The IRS expressly says that filing Form 8938 does not relieve you of filing FinCEN Form 114 when you otherwise meet the FBAR requirement. A tax program that prepares one form is therefore not automatically handling the other.
Form 8938 thresholds you must check
For U.S. residents, the cited IRS instructions use these thresholds for unmarried taxpayers and married taxpayers filing separately: more than $50,000 on the last day of the year or more than $75,000 at any time during the year. For married filing jointly, the thresholds are more than $100,000 on the last day or more than $150,000 at any time.
Qualifying taxpayers living abroad have higher thresholds: more than $200,000 on the last day or more than $300,000 at any time for unmarried or separate filers, and more than $400,000 on the last day or more than $600,000 at any time for married filing jointly. Apply the residence and filing-status rules for the specific tax year; do not select an “expat” setting solely because you hold a foreign account.
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- Recommended if you own a home, have charitable donations, high medical expenses and need to file both Federal & State Tax Returns
- Includes 5 Federal e-files and 1 State via download. State e-file sold separately. Get U.S.-based technical support (hours may vary).
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Foreign earned income exclusion versus foreign tax credit
Form 2555: exclusion and housing benefit
Form 2555 can exclude qualifying foreign earned income after you establish a foreign tax home and satisfy either the bona-fide-residence test or the physical-presence test. It can also calculate a foreign housing benefit when the applicable requirements are met. The exclusion is limited per qualifying person and changes by year: the maximum is $130,000 for tax year 2025 and $132,900 for tax year 2026. Those are maximum figures; the exclusion cannot exceed qualifying foreign earned income.
Form 1116: credit for eligible foreign tax
Form 1116 calculates a credit for eligible foreign income taxes. A credit generally addresses foreign tax paid or accrued, whereas Form 2555 addresses qualifying earned income and housing. Your choice depends on the type of income, taxes paid, residence and the applicable limitation calculations. Do not enter the same foreign tax or income in a way that claims two benefits for the same amount; follow the software interview and the current IRS instructions.
Why the choice affects software selection
A product that merely imports a foreign wage amount is not enough. You need an interview that records foreign employer or self-employment details, dates and countries, foreign taxes, exchange-rate inputs, housing information when relevant, and the test used for Form 2555. If you expect to use Form 1116, verify that the edition supports the required income categories and any carryover information you have from prior years.
Rank #3
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- TurboTax Desktop Edition is download software which you install on your computer for use
- Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
- Recommended if you are self-employed, an independent contractor, freelancer, small business owner, sole proprietor, or consultant
- Includes 5 Federal e-files and 1 State via download. State e-file sold separately. Get U.S.-based technical support (hours may vary)
- Live Tax Advice: Connect with a tax expert and get one-on-one advice and answers as you prepare your return (fee applies)
Best software choices
| Option | Published foreign-form evidence | FBAR handling | Best fit | What to verify before paying |
|---|---|---|---|---|
| H&R Block Expat Tax Software | Its expatriate page explicitly lists Form 1116, Form 2555 and FBAR filing. | FBAR is listed in the expat workflow; a separate FBAR service advertises filing starting at $49. Confirm whether your selected package includes it or charges separately. | A primarily expatriate return where published support for the two major income forms and an FBAR workflow matters. | Form 8938, state return compatibility, foreign-currency and multi-country entry, investment or rental schedules, amendment and prior-year support, and the current tax-year price. |
| TaxAct Premier | Premier is positioned for investment and other non-W-2 income and lists Foreign Bank Account Report filing. The cited product information does not enumerate every expatriate form. | FBAR filing is listed; confirm whether it is included, an add-on or a separate process. | A price-sensitive DIY filer whose return centers on investment income and reportable foreign accounts. | Current Form 2555 and Form 8938 support, Form 1116 and foreign-tax-credit carryovers, state filing, exchange-rate entry, multi-country situations and amendment capability. |
| TurboTax Online | TurboTax publishes tiered online products and warns that adding schedules or forms can require an upgrade. The cited pages do not establish universal Form 1116, 2555 or Form 8938 support across tiers. | Its support material explains who must file FinCEN Form 114, but verify the actual filing workflow and whether it is included in your edition. | A mainstream interface for a relatively uncomplicated return, only after the exact tier passes your form checklist. | Whether your tax year and tier include Forms 1116, 2555 and 8938, foreign-income interviews, FBAR handling, state returns, amendments and prior-year import. |
| Expat CPA or enrolled agent | Professional preparation can address forms and elections that consumer interviews do not cover reliably. | The professional should coordinate, but you still need a separate FinCEN Form 114 filing when required. | PFICs, foreign trusts, treaty positions, multiple-country moves, foreign businesses, large portfolios, late filings or uncertain residency. | Credentials, experience with your countries and entity types, scope of engagement, review of both tax and information filings, and the fee for amendments or prior years. |
How to choose the right edition before entering data
- List every form you may need. Write down Form 1116, Form 2555, Form 8938 and FBAR separately. Add Schedule E for foreign rental income, business schedules for self-employment or entity income, and investment forms if applicable.
- Identify your tax residence and filing status. Your residence and whether you file jointly, separately or unmarried affect Form 8938 thresholds. A move during the year can create a multi-country residency question that deserves professional review.
- Inventory account types and maximum values. Record each foreign bank, brokerage, pension or other financial account, its owner or signature authority, and the highest value during the calendar year. Add the values for the FBAR test; do not look only at year-end balances.
- Separate earned income from investment and passive income. Wages and self-employment receipts may fit the Form 2555 analysis. Interest, dividends, gains, rent and other categories can require different forms and Form 1116 limitation baskets.
- Ask the vendor’s pre-purchase support exact questions. “Does this tax-year edition prepare Form 1116 for my income categories, Form 2555, Form 8938 and the FBAR workflow? Is each included or an add-on? Can it handle more than one country, foreign currency, self-employment, rental income, carryovers and a state return?” Save the answers and the edition name.
- Check total cost, not the headline tier. Include federal preparation, state preparation, foreign-form add-ons, FBAR charges, expert review, amendments and prior-year returns. The final price is not established by the free or entry-level label when extra schedules trigger an upgrade.
A reliable filing workflow
1. Gather source records
- Foreign wage statements, employment contracts, self-employment books and invoices.
- Year-end and highest-in-year statements for every foreign account.
- Foreign tax assessments, withholding records and proof of payment.
- Brokerage transaction reports, dividend and interest statements, rental records and pension information.
- Travel dates, housing costs and residence documents if you may use Form 2555.
- Prior-year returns, Form 1116 carryovers and any previous Form 8938 or FBAR confirmations.
2. Enter income and currency information consistently
Use the software’s foreign-income or expatriate interview rather than forcing amounts into a generic “other income” box. Keep a record of the exchange-rate method and dates used. Apply the same documented method to related income, expenses and taxes unless the instructions require a different convention.
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If you are considering the exclusion, answer the tax-home, bona-fide-residence and physical-presence questions with exact dates. If you are claiming foreign tax credit, classify the foreign income and tax in the Form 1116 interview and review any limitation or carryover screens. A software result is only as accurate as the residency dates, income category and foreign-tax data entered.
4. Test Form 8938 independently
Compare the specified foreign financial assets with both the last-day and anytime thresholds for your residence and filing status. Include assets that the program does not automatically import from a bank feed. Then confirm whether an asset is already reported elsewhere; duplication rules can affect how Form 8938 is completed, but they do not eliminate an FBAR requirement when the FBAR test is met.
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- TurboTax Desktop Edition is download software which you install on your computer for use
- Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
- Recommended if you own a home, have charitable donations, high medical expenses, or only need to file a Federal Tax Return
- Includes 5 federal e-files. State download and e-file additional. Get U.S.-based technical support (hours may vary).
- Live Tax Advice: Connect with a tax expert and get one-on-one advice and answers as you prepare your return (fee applies)
5. Prepare the FBAR as a separate filing
When the combined maximum value of reportable foreign accounts exceeded $10,000 at any time in the calendar year, prepare FinCEN Form 114 through the FBAR process. Enter each account, institution, country, ownership type and maximum value. Keep the electronic confirmation separately from your income-tax return records. An account with no interest, dividends or other taxable income can still belong on the FBAR.
6. Review federal, state and foreign obligations
Federal software support does not guarantee state support. Check whether your state treats excluded foreign wages, foreign tax credits, investment income or residency differently. Also consider whether the foreign country requires a local return, social-insurance filing or employer reporting; U.S. tax software generally does not complete those filings.
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Download the final federal return, every generated schedule, Form 8938, Form 2555 or Form 1116, state return and FBAR confirmation. Record the tax year, software edition and filing date. If a form is missing from the PDF or filing summary, stop and resolve that issue before assuming the return is complete.
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- TurboTax Desktop Edition is download software which you install on your computer for use
- Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
- Recommended if you sold stock, bonds or mutual funds, sold employee stock, own rental property or are a trust beneficiary.
- Includes 5 Federal e-files and 1 State via download. State e-file sold separately. Get U.S.-based technical support (hours may vary).
- Live Tax Advice: Connect with a tax expert and get one-on-one advice and answers as you prepare your return (fee applies)
When consumer software is a poor fit
PFICs and foreign funds
Passive foreign investment companies can require specialized calculations and elections. A standard investment interview may not identify every PFIC or produce the required reporting. Ask a professional before filing if you own non-U.S. mutual funds, ETFs or similar pooled investments.
Foreign trusts, foundations and gifts
Trust ownership, distributions, settlor or beneficiary status and foreign gifts can trigger forms beyond the four core items discussed here. Do not treat a trust statement as an ordinary bank statement.
Businesses and controlled entities
Ownership in a foreign corporation, partnership or other entity can create information returns, allocation issues and local-law questions. Consumer software is less suitable when the account is held through an entity rather than directly by you.
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Treaty positions and changing residence
Dual citizens, people who moved between countries, and taxpayers relying on treaty residence provisions need a documented analysis of residency, tie-breakers and return positions. An interview that asks only where you lived at year-end may be insufficient.
Late, amended or multi-year filings
Late FBARs, omitted foreign accounts, amended returns and prior-year foreign-tax-credit carryovers require coordinated corrections. Use a professional when you are unsure which years, forms or penalty-relief procedures apply.
Common mistakes and fixes
| Mistake | Why it fails | Fix |
|---|---|---|
| Reporting a foreign account only on the tax return | FBAR and Form 8938 are separate disclosures with different tests. | Run the $10,000 aggregate maximum-balance test for FBAR and the applicable Form 8938 thresholds independently. |
| Assuming no taxable interest means no FBAR | FBAR is based on account values, not whether income was earned. | Use the highest balance during the calendar year for every reportable account. |
| Buying the cheapest software tier | Adding foreign schedules can force an upgrade or leave a form unsupported. | Confirm the exact tax-year edition and all required forms before entering data. |
| Claiming both exclusion and credit without reviewing overlap | The same income or foreign tax cannot be used improperly for duplicate benefits. | Compare the Form 2555 and Form 1116 results and follow the current instructions for ordering and limitations. |
| Using year-end values for every test | FBAR uses the maximum value at any time; Form 8938 has both last-day and anytime thresholds. | Keep a high-water-mark record and evaluate both dates required by each form. |
| Ignoring state filing | Federal foreign-form support does not establish state compatibility. | Check the state product and residency rules separately. |
| Filing Form 8938 and assuming FBAR is covered | The IRS says Form 8938 does not relieve an otherwise-required FBAR. | Complete the separate FinCEN Form 114 process and retain its confirmation. |
Decision guide
- Choose H&R Block Expat Tax Software when you want a published path for Forms 1116 and 2555 plus FBAR filing, or you want the option of advisor-assisted expatriate preparation.
- Choose TaxAct Premier when investment or other non-W-2 income and FBAR are central, the return is otherwise straightforward, and you have confirmed support for Form 2555, Form 8938, Form 1116 carryovers and your state.
- Choose TurboTax Online only after the exact tier and tax year pass the same form-by-form check. Its entry-level edition should not be assumed to handle complex foreign schedules because additional forms can require an upgrade.
- Choose an expat CPA or enrolled agent when any PFIC, trust, treaty, entity, multi-country, late-filing or uncertain-residency issue is present.
Final pre-filing checklist
- Have you determined whether the combined maximum foreign-account value exceeded $10,000 at any time?
- Have you tested Form 8938 using both the last-day and anytime thresholds for your filing status and residence?
- Does your edition explicitly support every form you need: 1116, 2555, 8938 and FBAR?
- Did you classify foreign wages, self-employment, rent, interest, dividends and gains correctly?
- Did you document exchange rates, foreign taxes paid or accrued, travel dates and housing information?
- Did you check federal, state and foreign filing obligations separately?
- Did you save the filed return, generated forms and separate FBAR confirmation?
For a conventional expatriate return, H&R Block’s explicitly published Form 1116, Form 2555 and FBAR coverage makes it the strongest starting point. TaxAct Premier can suit a simpler investment-focused case, and TurboTax may be appropriate when its exact tier contains every required schedule. The decisive test is not brand familiarity or a low headline price; it is whether the selected tax-year edition prepares the forms your facts require and keeps the separate FBAR filing from being overlooked.
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