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AMERICANS IN ITALY

Americans in Italy: Is it worth paying for professional help with your taxes?

Navigating two tax systems as an American living in Italy can be a headache-inducing process. So it is worth shelling out for professional help?

Published: 17 January 2024 09:58 CET
Updated: 20 January 2024 06:53 CET
Americans in Italy: Is it worth paying for professional help with your taxes?
Filing taxes in two countries can be a headache for Americans based in Italy. Getty Images via AFP.

Many Americans living in Italy need to file taxes in both countries; and depending on how high your income is, you may be surprised to learn you also owe tax in both countries.

We asked our American readers how they cope with all that bureaucracy and whether they recommend using the services of professional to navigate the system.

“Yes, IF they know what they’re doing!” said one anonymous resident.

“I will be paying much more starting in 2024 but it will be worth it for greater peace of mind. Taxes are so complicated here but add in a US citizen and it is truly a nightmare.”

Almost all those who responded agreed that it was necessary to seek professional help in at least one, if not both countries.

READ ALSO: Reader question: Do US nationals in Italy have to pay taxes twice?

“US taxes have become a nightmare. We do our personal Italian taxes ourselves,” said a reader in Florence; while Eija Trees in Collepasso advises: “Hire tax professionals in both countries, your life will be much easier.”

It’s particularly worth getting outside input if your situation is in any way complicated, say readers.

Scott in Milan uses the services of a tax professional “as I am an independent worker and have additional complexity from this.”

The Internal Revenue Service (IRS) headquarters in Washington, DC. Photo by MANDEL NGAN / AFP.

“Get professional tax advice for your specific situation. Know that double taxation is real, despite the existence of tax treaties,” said one anonymous reader who says they pay for professional help in order to avoid being audited in Italy.

The average cost of a tax consultant was between €500 and €1,500, readers said, though some paid more than this.

A small number of respondents said they handled the paperwork themselves, but underscored that the decision about whether or not to use an accountant depends on your personal situation, including “if you have property or investments in Italy,” as one reader wrote.

READ ALSO: What is an Italian commercialista and do you really need one?

William Searles in Puglia says he fills out his own forms using TurboTax “as our financial situation is simple,” but adds that he would seek out professional help “if we had more complex issues.”

“Read the bilateral tax treaty as well as the IRS publications on taxation in Italy. Get the help of an accounting firm in advance to understand what records you will need to keep to be prepared to file your taxes in Italy,” counsels an anonymous reader in Puglia.

“Do your homework. Find a commercialista with experience with US expats. Plan your transition from US to Italian tax systems,” is the advice from US citizen Lee.

“Learn the gotchas before you get surprised,” he adds; “You’ll have surprises anyway, but hopefully they won’t be devastating”.

Please note that The Local is unable to advise on individual cases. To find out more about the requirements for filing your tax return, seek advice from a qualified professional.

For more information on Italian tax residence, see the Italian Revenue Agency’s website. For more information on IRS provisions available to US nationals living abroad, see the relevant IRS website page.

Do you have a question about living in or travelling to Italy which you’d like to see answered on The Local? Submit it here.

Member comments

  1. We were told recently by a commercialista that we did not need to file taxes in Italy since our income is derived from Social Security and retirement savings in the US.

  2. When looking for a US accountant, make sure they know expat issues. Most US accountants are not familiar. I have found an individual who travels to Italy several times a year to meet with US clients. She knows what you can deduct. Most expats do not need to pay US taxes after proper deduction of the Italian taxes already paid. You need to use a service that understands. I can provide contact info for the person I have recommended to Italian expats. They have been very satisfied.

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AMERICANS IN ITALY

How to quickly get a US passport for a child born in Italy

What are the steps to apply for a baby's US passport from Italy? How long does it take? Here’s all the experience-based information and tips American parents in Italy should know before beginning the process.

Published: 13 May 2024 15:35 CEST
How to quickly get a US passport for a child born in Italy

You’ve left the United States and moved to Italy. Now, you’ve added a baby to this exciting new life. You’ll want to secure their US citizenship and passport straight away.

This article lays out the qualifications for a US passport and the steps to get one. Fortunately, the process is fairly simple, according to people who have done it.

Does your baby qualify for a US passport?

Your newborn qualifies for US citizenship and a US passport under the following conditions:

  •  They were born within wedlock to two US citizen parents.
  • They were born within wedlock and one of the parents is a US citizen who lived for at least five years in the United States, two of which were after age 14.
  • They were born out of wedlock to a US citizen mother who lived for at least five years in the United States, two of which were after age 14, and a non-citizen father.
  • They were born out of wedlock to a US citizen father who lived for at least five years in the United States, two of which were after age 14, and non-citizen mother, provided certain additional requirements are met.

READ ALSO: How to renew your American passport in Italy

When the parent who is a US citizen is the father and the baby is born out of wedlock, there are a few extra steps required.

You’ll attain a sworn statement from the father agreeing to give financial support until they are 18 years old and supply a written statement acknowledging paternity.

If your child does qualify for American citizenship, the next steps are pretty straightforward, although completing the required forms can be time-consuming.

What are the first steps when applying for a child’s US passport from Italy?

The first step is applying for a Consular Report of Birth abroad (CRBA), which documents that your child is a US citizen at birth. Any of the US Consular Agencies in Rome, Milan, Florence or Naples can accept applications for Consular Reports of Birth Abroad (CRBA) and US passports.

To begin, you’ll apply online. But remember, you’ll need original copies of any documents you upload; you’ll bring these to your in-person appointment at the consulate.

Documents you’ll need include:

  • Your child’s original Italy birth certificate with both parents’ names, along with two photocopies.
  • Your original marriage certificate, if married, plus one photocopy.
  • Your original divorce certificate, if divorced, plus one photocopy.
  • Valid original passport/identification document for each parent, along with two photocopies.
  • Proof of US citizenship, such as a passport, birth certificate, or Certificate of Naturalization, for the US parent(s), plus copies.
  • Proof of physical presence in the United States for the US parent(s), in the form of documents such as school records, university transcripts or employment records.

All foreign-language documents must be accompanied by a simple English translation that does not need to be certified.

In Italy, you can submit your CRBA application and pay the $100 processing fee online, following the specific instructions for the consulate where you want to schedule your in-person appointment.

READ ALSO: What to do if you lose your passport while travelling in Italy

You’ll then be contacted within five business days with a date and time for your interview. You’ll need to bring the originals and photocopies of all the documents listed above, as well as a completed DS-2029 form.

To apply for a US passport for your child at the same time as the CRBA appointment, you’ll need to bring a completed DS-11 (passport application) form and, if in Rome or Naples, a completed SS-5 (social security card application) form.

 You’ll need to bring original copies and photocopies of the following documents:

  •  One 2”x2” (5x5cm) passport picture for your child.
  • Identification for both parents.
  • A physical copy of the completed passport application form (DS-11).
  • Anything else your consulate tells you to bring (such as completed SS-5 form in Rome or Naples).

You’ll need to pay the $135 under-16s passport application fee via cash or card at the appointment.

Important considerations:

For the CRBA, the US parent(s) must report their physical presence in the United States, detailing each trip abroad. In other words, it’s crucial you don’t include time abroad in your list of days staying within the United States. If the dates are incorrect, the processing could be suspended until you correct the dates.

It’s very important for both listed parents to attend the appointment. If only one parent can attend, you’ll need to submit a notarised DS-3053 Statement of Consent from the absent parent. If you have sole legal custody of your child, you’ll need to bring proof, such as a court order.

Bring your child’s passport photo in a separate envelope (to not lose it) but don’t staple it to the passport application.

How long does it take?

Once your application and interview are complete, it takes around 15 working days for Italy’s US consulates to process a CRBA and first passport.

If you have questions, don’t be shy about contacting your consulate for clarification.

Congratulations on your multinational family!

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