US Taxes From Abroad: Filing Basics

The United States taxes its citizens on their worldwide income, wherever they live. That surprises many people who move abroad. Leaving the country does not end the obligation to file a US tax return. Whether you owe anything is a separate question, but the filing requirement follows you.

This guide covers the basics from the IRS pages for US citizens and resident aliens abroad. It is not tax advice, and your situation may have details that change the answer. For anything beyond the basics, use a tax professional who works with Americans abroad.

Who has to file

The IRS states that US citizens and residents living or traveling outside the United States generally have to file returns in the same way as those living in the US. Whether you must file depends on your gross income from worldwide sources, your filing status and your age. The IRS also says that income you exclude as foreign earned income still counts when deciding whether you must file. The threshold depends on filing status, age and other factors, and changes each year. Check the official page for the current year's figures.

If you are self-employed, your business gross income counts toward that test, and self-employment tax has its own rules. Check the official page.

Filing is not the same as paying

Many Americans abroad file a return and owe little or nothing, because of provisions designed to reduce double taxation. The IRS describes two main ones:

• The foreign earned income exclusion, which can exclude a portion of foreign earned income if you meet certain tests.
• The foreign tax credit, which can credit taxes paid to another country against US tax.

These have conditions and limits, and choosing between them has long-term effects. Read the IRS pages, and consider professional help, before choosing.

The key point: these benefits generally have to be claimed on a filed return. Not filing means not claiming them.

When it is due

The normal US deadline is April 15. For people living abroad, the IRS provides an automatic 2-month extension:

• If you are a US citizen or resident alien and, on the regular due date, you live outside the US and Puerto Rico and your main place of business or post of duty is outside them (or you are in military service outside them), you get until June 15 to file.
• You attach a statement to your return explaining which situation qualifies you.

Two cautions from the IRS page:

• Interest still runs from April 15. The extension is for filing. If you owe tax, interest is charged on unpaid tax from the regular due date.
• More time is available, but you must request it. The IRS describes how to request an additional extension. Check the official page for the current form and deadline.

Keep records like a resident of two countries

Living abroad means more paperwork, not less:

• Keep pay slips, bank statements and tax documents from both countries.
• Record exchange rates you used, and where they came from.
• Keep proof of where you lived and when. Some foreign income rules depend on your days abroad.
• Keep copies of every return you file.

Other US forms that follow you

Filing a tax return is one obligation. Reporting foreign accounts is another, and it has its own forms and deadlines. See FBAR and FATCA in plain language.

Checklist

• Confirm whether your income is above the filing threshold.
• Gather worldwide income documents.
• Decide, with care, how you will address double taxation.
• If you live abroad on April 15, note the June 15 extended date and attach the statement.
• Pay any tax due by April 15 to limit interest.
• Check the foreign account reporting rules.

For the money side of living abroad, see Sending money abroad and Bank accounts and cards abroad.

Common questions

I have no US income. Do I still file? The threshold is based on worldwide income, so a salary earned abroad counts. Check the threshold for your filing status.

Does the state I left still expect a return? State rules differ and are separate from federal rules. Check your former state's tax agency.

Can I file late? The IRS has procedures for people who did not file while abroad. Check the official page, and consider professional help before choosing one.