Expats, File Your Taxes Fast and Easy

As a US expat living abroad – filing your taxes was probably not something on your mind frequently. Although, in spite of you living your best life in the country of your dreams (hopefully!); taxes still remain a part of your responsibilities as a US citizen. However, no stress because here lies an overview of some of the essentials you should know as a US expat.

Do Expats File from Abroad?

You would think that if a majority of countries would only have people filing taxes in the country they’re residing in. Although that’s not the case for the US. The US is one of two countries that have taxes linked to their citizenship. Therefore, it does not matter where in the world you’re living, your US tax obligation is in your shadow. However, although you still need to file US taxes if you’re an expat, you most likely will not owe taxes – keep reading to know more!

When Does an Expat Need to File?

When filing your US tax return as an expat, you have not only the April 15th deadline to worry about. You have three other deadlines to be aware of as a US expat.

April 15th: This is the standard filing date for any US taxpayer living in the US, but it’s also the deadline to pay any taxes that are owed to the IRS – even if you’re an expat.

June 15th: As an expat, you get an automatic 2-month extension from the April deadline. Some documents from your foreign employers can arrive a bit late, so this deadline gives you a little extra time.

October 15th: If you need more time past June, you can always file an extension, but that must be done by June 15th.

December 15th: This is the last possible date to file, but you must file your request for this special extension in October by sending the IRS a letter.

Remember that while the month is always fixed, if the 15th falls on a weekend or holiday, that year’s due date will be the following workday.

How Do Expats File an Extension?

Navigating tax extensions is important to managing your tax filings as a US expat. If the June 15th deadline is approaching and you’re not ready to file, you can request an extension by submitting Form 4868.

Form 4868 is an ‘Application for Automatic Extension of Time to File US Individual Income Tax Return’. This grants you until October 15th to file your tax return without incurring late-filing penalties.

For expats with complex tax situations or who need more time to gather necessary documentation, extending until December 15th is possible. This additional extension isn’t automatic; you must write to the IRS explaining why you need more time.

Remember that while extensions give you more time to file, they do not extend the time for payment. Any taxes owed are still due by the original April 15th deadline to avoid interest and late payment penalties.

Does an Expat File an FBAR?

In most cases, expats must file a Report of Foreign Bank and Financial Accounts (FBAR), but only if the combined maximum balance of all their foreign financial accounts exceeds $10,000. This includes bank accounts, brokerage accounts, mutual funds, trusts, or other financial accounts. It doesn’t matter if it was only for a second that your foreign account went over $10,000; you’ll still need to file.

Filing an FBAR is separate from your tax return and is done through the Financial Crimes Enforcement Network’s (FinCEN) Form 114, which must be filed electronically. The deadline for the FBAR is April 15th, with an automatic extension to October 15th for US expats, aligning with the tax return filing dates. Reporting all foreign financial assets accurately is critical to avoid substantial penalties. Understanding and complying with FBAR requirements is essential to managing your tax responsibilities as a US expat.

Does an Expat File a Tax Return and Always Get a Refund?

When you file your tax return, there’s no guarantee that you’ll get a refund. However, if you meet the criteria for, say, the Child Tax Credit or the Stimulus Checks, you should be able to receive a refund.

Fortunately, there are tax benefits such as the Foreign Earned Income Exclusion, Foreign Tax Credit, and US tax treaties to avoid double taxation, so while you may not get a refund, you should not owe taxes.

What Tax Benefits Can Expats File?

There are tax benefits for individuals living abroad – ones that work to prevent double taxation. If you haven’t heard of them yet, here are the most common benefits for expats:

Foreign Earned Income Exclusion

The Foreign Earned Income Exclusion (FEIE) is a powerful tool for US expats to reduce their taxable income. If you meet specific requirements, such as residing outside the US for most of the year, you may be able to exclude up to a set amount of your foreign earnings from US taxes.

To maximize this benefit, it’s essential to understand the eligibility criteria, which include passing either the Bona Fide Residence Test or the Physical Presence Test. Remember, this can only exclude earned income—things like wages and self-employment income—and not passive income such as dividends and interest.

Foreign Tax Credit

The Foreign Tax Credit (FTC) is another crucial element for US expats to lessen the risk of double taxation on the same income. This credit allows you to offset your taxes in your host country against your US tax liability. If you’ve paid or accrued tax to a foreign government, and that income is also subject to US taxation, you can claim the FTC to reduce your US tax bill dollar for dollar.

You must file Form 1116 with your US tax return to take advantage of the FTC. The form helps calculate the credit based on foreign income and taxes paid on it. There are limitations to the credit, including the fact that it cannot exceed the amount of US taxes on that foreign income. It’s essential to have a thorough understanding of how the FTC works or to reach out to the MyExpatTaxes Tax Professionals, who can guide you through the process to ensure you’re not leaving money on the table.

Tax Treaties

Tax treaties play a pivotal role in preventing double taxation for US expats. These agreements are made between the US and many other countries to define tax rules on income, including which country has the right to tax certain types of income. By understanding the provisions of the applicable tax treaty, you can determine how to report your income correctly and take advantage of treaty benefits.

To apply a tax treaty, you must be a resident of one of the treaty countries and meet other requirements outlined in the specific agreement. Some treaties provide for reduced tax rates or exemptions on certain types of income.

It’s important to carefully read the treaty that applies to you and understand its impact on your tax situation. In some cases, the treaty will be more beneficial than the standard Foreign Tax Credit or Foreign Earned Income Exclusion, so choosing the right option can significantly affect your tax outcomes.

Expat, File With Software for Affordable Tax Returns

The time is nearing for you, fellow expat, to file your taxes! Curious about where to file? Let MyExpatTaxes spill the tea – we have a whole load of information you should consider before filing.

Maybe you’re just doing some research and preparing for your filing abroad. Whether you have lived abroad for years or this is your first year, knowing your options is good.

MyExpatTaxes Plans

MyExpatTaxes offers a Base plan for users to “Do-it-Yourself,” where you can file all your essentials as a US expat. These include forms 1116 (FTC), 2555 (FEIE), 8938 (FBAR & FATCA), along with the standard 1040 (duh!), and more. It’s an excellent option for a single filer or married filing jointly with minimal assets.

However, if you are an expat bold enough to run your own business in a foreign country (well done, MyExpatTaxes tips its hat at your success), there is another plan that would be recommended!

The Premium plan allows you to file your corporate forms, such as Form 5471 or Form 8865, with additional help from our Tax Professionals. There is plenty of extra support to help you file that hefty load of self-employed forms.

NOTE: In 2025, the Premium plan has an optional 30-minute consultation with one of our Tax Professionals. However, due to an increased demand, consultation calls are subject to availability.

Nevertheless, there is no pressure. Take your time and think about what company and plan best suit your needs as a US expat filing abroad.

The Streamlined Procedure

You may have heard about the streamlined procedure, but for those who haven’t, this one is for you! It’s common for US citizens who have moved abroad to be unaware of their tax duties for many years. Luckily, the IRS noticed a familiar trend among expats, creating the Streamlined Procedure to help you catch up. Yes, you can file up to three years of prior tax returns and six years of FBARs WITHOUT PENALTY using the Streamlined Procedure!

Yeah, we said it without penalties! But you must keep in mind that this needs to be done before the IRS sends you a letter telling you to file! If you want to know more about the Streamlined Procedure, check out the downloadable PDF guide dedicated to explaining everything you need to know.