La Ronda is just around the corner

Friday, March 16, 2012

Filing your tax return in Quito, Ecuador for retirees.

We don't have to go to the States at tax time to file our return.  When we moved to Ecuador, we changed our US address to an Ecuadorian address on our passive source income (examples of passive income - pensions, federal benefits, 401K distributions, dividends, and interest distribution).  This is so we don't have to file a state tax return where we used to live.
All these seemingly complicated matters come down to one simple, single paper - form 1099: 1099R, SSA1099, 1099 INT, 1099 DIV.
At tax time we receive 1099s at our Ecuadorian address.  I go to our neighborhood internet cafe and scan these 1099s, attach them to an email, and send it to myself.
Then I go online to HR Block at Home - Best of Both, on-line tax prep software, and enter all the info (1099s).
We also have rentals, so we have to file a schedule E.  In 2011 our annual trip to Minneapolis was partly tax deductable because we did some work on our rental. 

HR Block assigns a tax preparer to check the return and I send her the scanned documents:  1099s, bank's docs(form 1098). and so on - HR Block software has an option to do it.
HR Block at Home - Best of Both is user friendly and you can talk to your tax preparer by Skype, if you have any questions.

We have lived in Quito since 2008 and we've filed our taxes this way four times already. This year we paid $79.95 for the tax prep, only filed a federal tax return, since we don't live in MN anymore, and our rental doesn't produce enough income to meet MN filing requirements.
If you are due to receive a tax refund - you can choose a direct deposit option, if you have to pay - there are a few options to pay, including paying online.






Monthly rental in Quito, for tourists and expats.
We have a 2 bedroom, 1 bath totally remodeled
Colonial Quito, furnished apartment for rent.
For booking, pictures and more info
http://quitorental.blogspot.com



Monthly rental in Quito, for tourists and expats.
3 bedroom, 1 bath remodeled
Colonial Quito, furnished apartment for rent.
For booking, pictures and more info
http://quitorental2.blogspot.com