If you’re a U.S. citizen or Green Card holder living outside the United States, you might wonder: “Do I still have to file a U.S. tax return if I live abroad?” The short answer is yes—but the details are important, and there may be ways to reduce or eliminate your U.S. tax bill.
Why You Still Have to File
The United States is one of the few countries that taxes based on citizenship, not just residency. That means:
As long as you are a U.S. citizen or Green Card holder, you are required to file a U.S. tax return every year—no matter where you live.
Even if all your income is earned abroad and you pay taxes to another country, you must still report it to the IRS.
Key Filing Requirements
Here’s what you need to keep in mind:
- Filing Thresholds Still Apply: Just like in the U.S., if your income is above a certain threshold (e.g., $13,850 for single filers in 2023), you’re required to file.
- Worldwide Income Counts: This includes salary, self-employment income, rental income, dividends, interest, and even crypto gains—regardless of where it’s earned.
What About Double Taxation?
Good news: The U.S. tax system has safeguards to help prevent you from being taxed twice on the same income. These include:
- Foreign Earned Income Exclusion (FEIE)
You can exclude up to $120,000 (for 2023) of foreign-earned income if you meet either:- The Physical Presence Test (330 days abroad in a 12-month period), or
- The Bona Fide Residence Test (you live in a foreign country for an entire calendar year).
- Foreign Tax Credit (FTC)
If you pay taxes to a foreign government, you may be able to use those taxes to offset your U.S. tax bill. - Tax Treaties
The U.S. has tax treaties with many countries that can reduce your tax liability.
Additional Reporting Requirements
U.S. expats often have extra forms to file, including:
- FBAR (Foreign Bank Account Report – FinCEN Form 114): Required if the total value of your foreign bank accounts exceeds $10,000 at any point in the year.
- FATCA (Form 8938): Required for certain foreign assets over specified thresholds.
- Form 2555 or Form 1116: Used for the FEIE and FTC, respectively.
Filing Deadlines for Expats
- Standard Deadline: April 15 (April 18 in 2025)
- Automatic Extension: U.S. expats automatically get an extension to June 15.
- Further Extension: You can file Form 4868 for an extension to October 15, but any taxes owed are still due by April 15 to avoid interest and penalties.
What If I Haven’t Filed?
If you’ve missed past filings, the IRS offers the Streamlined Foreign Offshore Procedures, which allow qualifying expats to catch up on their taxes penalty-free.
Final Thoughts
Living abroad doesn’t exempt you from U.S. tax responsibilities—but with proper planning, you can stay compliant and avoid paying more than you owe. Whether you’re a digital nomad, a retiree, or an overseas contractor, understanding your obligations is key to peace of mind and financial health.
Need help with your U.S. expat taxes? Our team specializes in helping Americans abroad navigate their tax requirements with ease. Contact us today for a free consultation.
Contact us: +1 (972)-996-6644
Email us : info@theriwa.com Visit our website : https://theriwa.com/
