The hard part is that Australian and US obligations are separate. Filing with the ATO doesn't settle your US position, and the right US return depends on your status, income sources and reporting duties.
This guide covers what Form 1040 is, what a 1040 tax pro does, who in Australia may need help, what it costs, how to choose a provider, and the mistakes to avoid.
Key Takeaways
- Form 1040 reports US federal tax. It doesn't replace an ATO return.
- A tax pro prepares, files and may support you after filing, depending on the engagement.
- Confirm your citizenship, residency, income and foreign-account position first.
- Compare providers on credentials, pricing clarity, data security and ongoing support.
What Is Form 1040 and Who Is a 1040 Tax Pro?
Form 1040 basics
Form 1040 is the annual US individual federal income tax return. It brings together income, adjustments, deductions, credits, tax paid and the resulting refund or balance due. Schedules and supporting forms cover specific situations:
- Schedule C and SE: sole-proprietor income and self-employment tax
- Schedule B and D: interest, dividends and capital gains
- Schedule E: rental and royalty income
- Schedule 8812: credits for children and other dependants
- Form 2555 and 1116: foreign earned income exclusion and foreign tax credit
- Form 8938: specified foreign financial assets
Check the current IRS instructions each year. The most recent final instructions cover tax year 2025.
Form 1040 compared with other returns
Form 1040 is not a state return, a business return or an Australian return. Filing one doesn't complete the others.
Form 1040-NR is for nonresident aliens who are required to file. Resident-alien status generally turns on the green-card test or the substantial-presence test. Living in Australia doesn't by itself decide which form applies.
What "tax pro" means
The term covers several credentials with different authority:
| Preparer type | IRS authority |
|---|---|
| CPA, enrolled agent, attorney | Unlimited representation before the IRS |
| Annual Filing Season Program participant | Limited representation for returns they prepared and signed |
| PTIN-only preparer | Can prepare paid returns; no general representation rights |
Be careful here. Australian tax-agent registration is not an IRS PTIN or a US representation credential. Ask for current US credentials and a PTIN.
What Does a 1040 Tax Pro Do?
Before preparation begins
A good pro starts with intake questions: citizenship, green-card status, residency, days in the US, filing status, dependants, prior returns, income sources, business interests, property and any past IRS letters.
From those answers they decide whether you need Form 1040, Form 1040-NR, extra schedules, state filings or no individual return at all.
Preparing income and supporting information
The pro reviews wage statements, contractor income, investment records, rental and business books, retirement distributions and foreign income. Several points need particular care:
- Worldwide income: US citizens and resident aliens abroad remain taxable on it. For 2025, a single filer under 65 generally faces a $15,750 gross-income filing threshold.
- Foreign earned income exclusion: The 2025 maximum is $130,000, subject to eligibility (generally 330 full days abroad). It doesn't reduce self-employment tax.
- Foreign tax credit: Form 1116 claims qualifying foreign tax, but not on income you've excluded.
- Currency: IRS guidance generally uses the rate when income is received or expenses are paid. The IRS lists a 2025 yearly average of A$1.551 per US$1, to be used only where appropriate.
Foreign reporting is a separate track. Form 8938 attaches to your return; you file the FBAR separately with FinCEN.
| Report | Threshold (abroad conditions) |
|---|---|
| Form 8938, single | Over $200,000 at year-end or $300,000 any time |
| Form 8938, joint | Over $400,000 at year-end or $600,000 any time |
| FBAR | Aggregate over $10,000 at any time |
Filing one doesn't satisfy the other.
Reviewing deductions, credits and filing details
The pro checks filing status, deductions, credits, withholding, estimated payments and dependants. They should ask for evidence, flag gaps, and separate legitimate planning from unsupported positions. No honest preparer promises a particular refund.
Filing and post-filing support
Expect a return review, your approval, e-filing or paper submission, and payment or refund instructions.
Taxpayers abroad get an automatic two-month extension (usually to 15 June). Form 4868 can extend filing to 15 October, but not the time to pay; interest runs from the regular due date.
Amendments use Form 1040-X. Representation on IRS notices needs Form 2848. Notice responses, audit support and ATO coordination may be separate services, so get them in writing.
Who in Australia May Need US Form 1040 Help?
Common situations
- US citizens and green-card holders in Australia: worldwide-income rules can still apply.
- Australians with US income: wages, dividends, interest, rental income or capital gains may call for Form 1040-NR. Non-effectively-connected US income is generally taxed at 30% or a lower treaty rate.
- US business owners and directors: Forms 5471 or 8858 may apply to certain officers, directors, shareholders or owners of foreign entities. Not every role triggers a filing.
Questions that determine the path
Work through these before choosing forms:
- Are you a US citizen or green-card holder?
- How many days were you in the US?
- What type and source is your income?
- Are you an Australian tax resident?
- Do you hold foreign accounts or assets?
- Have you filed in the US before, or received IRS letters?
Not everyone in Australia with US income must file Form 1040. Some need Form 1040-NR, information returns or nothing after review.
Cross-border coordination
The US-Australia treaty can cut withholding for eligible residents (generally 15% on dividends, 10% on interest, 5% on royalties). But its saving clause preserves US taxation of US citizens and residents in specified cases. Superannuation has no blanket US treatment, so get advice for your specific plan.
An ATO foreign income tax offset also depends on foreign tax properly imposed, not simply on US tax paid. Use a pro who coordinates with your Australian adviser or states clearly which country they cover.
How Much Does 1040 Tax Preparation Cost and How Should You Choose a Pro?
What determines the fee?
Cost rises with complexity. Common drivers include:
- Number of forms and schedules
- Foreign income, investments, rental or business activity
- Multiple states, prior-year corrections or missing records
- Planning or representation needs
The NSA's 2024 survey reports $300 to $600 for an itemised Form 1040 (183 participants). It isn't Australia-specific, so treat it as a broad benchmark rather than a quote.
Questions to ask
- Who prepares and signs the return, and what credentials do they hold?
- Do they regularly handle Australian-US cases?
- Is the fee flat, per form or hourly, and what does it include (state returns, FBAR, extensions, amendments, notices)?
- How are sensitive documents protected?
- When will I see a draft?
- What happens if the IRS writes to me?
Avoid fees based on a percentage of your refund, and walk away from any preparer who won't sign and include a PTIN. The FTC Safeguards Rule treats tax-preparation firms as covered financial institutions, so ask about their written security programme.
Choosing a provider
Prioritise providers that offer:
- Current US credentials
- Transparent engagement terms
- Secure document handling
- Year-round communication
- Cross-border Australian-US experience
VJM Global supports Form 1040 and Form 1040-NR preparation, with pricing quoted by entity structure and service scope. Its team includes CPAs, Chartered Accountants and US-compliant professionals, and it has served 250+ Australian businesses. Its About page shows an ISO 27001 badge. Support also covers FBAR and Form 8938 reporting and IRS notice handling. Confirm scope, credentials and inclusions in writing before you engage anyone, VJM Global included.
How to Prepare for 1040 Tax Filing and Avoid Common Mistakes
Documents to gather
- SSN or ITIN details for you and others on the return
- Prior-year returns, including AGI
- W-2 and 1099 statements; 1042-S for US-source income with withholding
- Investment, rental and property records
- Business income and expenses
- Foreign income, overseas tax paid and exchange-rate records
- Dependant and immigration details
- Any IRS correspondence
Common errors to avoid
- Wrong filing status, or names that don't match Social Security records
- Omitted foreign income or missing schedules
- Incomplete investment or rental records
- Mixing up US and Australian rules
- Inconsistent currency conversion
- Unsupported deductions
- Filing late
Late filing generally costs 5% of unpaid tax per month (maximum 25%), and late payment costs 0.5% per month. Form 8938 carries a $10,000 initial penalty. Keep income records for at least 3 years (6 where foreign-asset income exceeds $5,000) and FBAR records for 5 years.
A secure review workflow
- Send documents through a secure portal or encrypted transfer.
- Check every name and taxpayer number.
- Compare the draft to source documents.
- Confirm all signatures are in place.
- Keep a complete copy and written confirmation of filing and payment or refund.
Frequently Asked Questions
What does a 1040 tax form do?
It reports your US federal income, deductions, credits, payments and resulting refund or balance due. Extra schedules or other returns may also be required.
What do tax pros do?
They review your circumstances and records, prepare the right forms, identify applicable provisions and file the return. Some also provide post-filing or representation support.
Do Australians living in Australia need to file a US Form 1040?
It depends on US citizenship or immigration status, US-source income, filing thresholds and other reporting rules. Australian residence alone doesn't decide it, so seek current IRS guidance or professional review.
Is Form 1040 the same as Form 1040-NR?
No. Form 1040 generally suits US citizens and resident aliens; 1040-NR is for nonresident aliens required to file. Your status and income source determine which applies.
How much does a 1040 tax pro cost?
Fees vary with complexity, schedules, cross-border issues, documentation and deadlines. Ask for a written quote listing inclusions and extra charges.
What documents should I give a 1040 tax preparer?
Identification and taxpayer numbers, prior returns, income statements, investment and property records, foreign income and tax details, business records, dependant details and any IRS letters.
