When You Actually Need to Hire an Expat Tax Accountant
We tried DIY our first year after moving. Spent 30 hours, made three mistakes, got an IRS letter, paid $400 in penalties.
Year two we hired an accountant. Cost: $800. Time spent: 8 hours. Confidence: 100%.
Best $800 we ever spent.
When You Need Professional Help
Hire an accountant if:
- First year abroad - Learning curve is steep. Mistakes are expensive.
- Running a DAFT business - Schedule C, SE tax, quarterly estimates, Dutch business taxes
- Income over $126,500 - FEIE doesn't cover excess. Need Foreign Tax Credit strategy.
- Multiple income sources - Different rules for different income types
- Foreign investments or rental property - Additional forms, complex calculations
When You Might DIY
You can consider DIY if your situation is:
- Simple W-2 income only
- Income under FEIE threshold
- Not your first year
- You're comfortable with tax software
- You have 10-20 hours to spend
Even then, we'd recommend professional help year one to set up the right strategy.
What Accountants Do
Tax preparation:
- Form 1040, 2555, schedules
- All required forms
- State returns if needed
Strategy:
- Choosing FEIE vs Foreign Tax Credit
- Estimated tax calculations
- Business structure advice
Year-round support:
- Answering questions
- Help with IRS letters
- Updates on tax law changes
What It Costs
Simple return: $300-600
Business owner (like us): $600-1,200
Complex situation: $1,200-2,500+
Our costs:
- US taxes: $800/year
- Dutch taxes: $400/year (separate accountant)
- Total: $1,200/year
Finding Good Accountants
Where to look:
- American Citizens Abroad directory
- Expat Facebook groups (ask for recommendations)
- Referrals from other Americans
- Google "expat tax accountant"
Good firms:
- Greenback Expat Tax Services
- Bright!Tax
- MyExpatTaxes
- H&R Block Expat Services
Questions to Ask
- Are you a CPA or EA? (Should be yes)
- How many expat clients do you have? (Should be 50+)
- Do you work with DAFT business owners?
- What's included in your fee?
- What's your process?
- Can I contact you with questions throughout the year?
Red Flags
- Not a CPA or EA
- No expat experience
- Too cheap (quality costs money)
- Poor communication
- Guarantees specific refund
Our Experience: DIY vs Accountant
DIY (Year One):
- 30 hours
- $200 software + $400 penalties
- Stressful
- Got IRS letter
Accountant (Year Two+):
- 8 hours gathering documents
- $800 fee
- Peace of mind
- Found $3,000 in deductions we missed
The Bottom Line
Hire an accountant if you have a business, multiple income sources, or it's your first year.
What we get for $1,200/year:
- Correct tax returns
- Optimized deductions
- No IRS letters
- Peace of mind
Worth it.
For a complete overview of expat taxes, see US taxes living in Netherlands complete guide and filing US taxes from Amsterdam.
Digital Guide — $199
We're not tax professionals—just Americans who learned this the hard way.