CPA fees for US expat returns typically run $350 to $499 per year. For Americans in Canada with employment income and standard accounts, the underlying work is repeatable. Here is what a CPA is actually doing, and when it makes sense to do it yourself.
Lou is a tax-preparation tool, not a tax advisor. This article describes how US expat returns are typically prepared. For advice on your specific situation, work with a qualified tax professional.
A US CPA who specializes in expat returns typically charges $350 to $499 per year for an American in Canada with standard employment income. For someone in that situation, the work follows a pattern: convert the T4 to USD, claim the foreign tax credit on Form 1116, note the RRSP deferral on Form 8833, report the TFSA on Form 3520. Same forms, same rules, every year.
That is not to say a CPA is doing nothing. The first return is genuinely hard. Figuring out whether your RRSP meets the treaty deferral conditions, understanding what your Canadian mutual funds mean for Form 8621, knowing which TFSA elections to make. These involve judgment. The value is real.
But the second return? If your situation is the same as last year, most of the fee goes to re-entering data you already provided.
What the work actually involves#
For most Americans in Canada with employment income, the return has a predictable shape:
- T4 income (Box 14) goes on Form 1040 line 1, converted to USD at the IRS annual average rate.
- Canadian income tax withheld (Box 22) goes into Form 1116 as foreign taxes paid.
- An RRSP is deferred under the US-Canada treaty; Form 8833 makes the election.
- A TFSA is reported as a foreign grantor trust; Form 3520 is filed.
- If there are Canadian mutual funds that qualify as PFICs, Form 8621 applies.
The judgment calls are in year one. After that, the structure is the same.
When a CPA makes sense#
Complex situations warrant professional help. Mid-year moves between Canada and the US. Rental property. Business ownership. Significant stock options or complex non-qualified compensation. Multiple currencies beyond CAD and USD. If any of these describe your situation, the fee is appropriate.
A CPA also provides something else: a signed return. When a CPA prepares and signs your return, they share professional responsibility for it. Some people value that more than the dollar amount.
When it might be overkill#
If you are a US citizen or green card holder who lived in Canada for the full tax year, worked a regular job, and hold standard accounts (RRSP, TFSA, RRIF), the forms are knowable. The data entry is mechanical. The rules are consistent year over year.
Lou handles exactly this situation. It reads your Canadian slips, converts everything to USD at the correct IRS rate, and fills the forms: 1040, 1116, 8833, 3520, FBAR, and more. Your documents stay on your device. No server uploads. No account required.
You can also use Lou and still have a professional look at the output. Lou produces a review package: every number, its source document, the applicable rule, all warnings, filled forms, and uploaded documents in one PDF. A tax professional can check that package in a fraction of the time it takes to prepare a return from scratch.
The software is $49 CAD. Then decide how much review makes sense for your situation.
Lou is a tax-preparation tool, not a tax advisor.
https://lou.bigtimedesign.ca