2023 US Tax Extension Deadline for Americans Abroad

December 4, 2022 | | 4 minute read
Expat Tax Blog. Tax Tips for US Americans abroad.

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US Tax Extension Deadline

Knowing the US tax extension date deadline for both filing and paying taxes can easily slip the mind. Especially if you’re a US citizen abroad preoccupied with expat life. However, it’s important to partake in your citizenship’s tax duty. This is to prevent penalties and getting into a negative standing with the IRS.

It’s even more important to realize that both the filing and tax deadlines have been changed this year due to the coronavirus. Therefore, we’re going to provide the tax information you need right now as an American abroad.

Why We Need to File US Taxes

Every year, it’s our duty as Americans – both living in the US and abroad – to report our worldwide income. This is as long as we pass a certain tax filing threshold. The obligation of filing can be tracked down to our US passports which state that such income must be reported to the IRS once a year.

For example, if you are filing single, and under 65 years old, your gross income must be at least $12,950. When you check to see where your income falls on the threshold, be sure to convert your foreign money into US dollars.

The usual tax filing extension date for Americans abroad is not going to be April 15. In fact, each expat gets an automatic 2-month extension date to file taxes – June 15.

Paying Taxes as an American Abroad

Questions that we encounter from our customers on a regular basis is about double taxation. Now, being double-taxed from your home country (USA) and the foreign country you’re living in is not fun for anyone, but sometimes it happens.

The US is one of only two countries in the world that have tax laws follow their citizens wherever they live around the world. However, the US has made an effort to lessen the effects of double taxation. They created both Tax Treaties and Totalization Agreements, where a large number of countries agreed to prevent US citizens from double taxation.

Additionally, there are expat tax benefits like the Foreign Earned Income Exclusion (FEIE), and the Foreign Tax Credit that support Americans abroad to limit unnecessary tax payments.

As for this year’s tax season, the FEIE helps you exclude up to $112,000 of foreign income. If your yearly income was $118,800 from working overseas and you subtract the FEIE exclusion, you’ll get a small percentage of taxes you need to pay to the IRS. This will usually be covered by the standard deduction or other deductions MyExpatTaxes will find for you.

There is typically no US tax extension deadline for Americans abroad, but only a tax filing deadline. This means that Americans abroad need to pay their due taxes by May 17th this year (new tax payment deadline during the pandemic), just like their fellow Americans back home.

US Tax Extension Deadline for 2023

As we explained above, the typical extension deadline for filing US taxes as an American abroad is June 15. However, there is also the option of filing for an even greater extension to usually October 15 (In 2023, it’s October 16th). For this, you will need to fill out a specific form to do that. Why not use the MyExpatTaxes software for filing all your extension forms?

Last year, due to the coronavirus, the IRS made the US tax paying and filing deadline July 15. However, this year in 2023, the IRS put the automatic 2-month tax filing extension date back to normal for expats which is June 15.

For an even greater extension, you can apply for the October 16, 2023 US tax extension as an American expat.

File Your Free US Tax Filing Extension

If you need to file for an extension, you can do so for free via our expat tax software. Just sign in, give us consent to file on your behalf, and then fill in the appropriate information. It’s that easy!

FBAR Deadline for 2023

As of this year, the FBAR deadline remains the same. It is April 18th, with an automatic extension to October 16th. Realistically though, you can say the FBAR deadline is actually in October.

The FBAR is a form you must fill out for the Financial Crimes Enforcement Network (FinCen). This is a bureau of the US Treasury that collects information about all financial transactions from any US citizen who is a resident of a foreign country. This is to combat illegal monetary activity (ie: international money laundering).

To file for the FBAR, it depends on how much money has been in all your bank accounts. This includes personal and business accounts. Plus, accounts where you have signature authority over. If you have or had over $10,000 at any one time during the 2022 tax year, you’ll need to file an FBAR for this tax season.

Our expat tax software system, MyExpatTaxes, has all the FBAR forms you need to file right on time. Plus, our team will do everything they can to make you tax compliant and avoid unnecessary penalties and fees from the IRS. Our software tax management platform takes away the complexities of US taxes. It’s easy to walk through as an American expat – saving you time and money.

Avoid Expat Tax Penalties with MyExpatTaxes

There is some important information regarding tax penalties for US taxes. Three penalties from the IRS can happen to Americans both inland and abroad who forget to file and/or pay taxes.

The three penalties for late taxes are: 

  • First – failure to file: 5% interest will be added to your owed taxes for every month your tax return is late. This can go up to 25%, or four months.
  • Second – failure to pay: you can be penalized with a 5% interest for every month you did not pay taxes to the IRS. This will go on until you pay the total amount, or interest reaches 25%.
  • Third – interest on the due tax: you’ll get interest added on to the amount you owe every time you need to pay US taxes to the IRS but don’t.

It is possible to avoid tax penalties and make up for the years missed from paying and/or filing US taxes. Our Streamlined Procedure program through our app will be just what you need and is incredibly affordable – compared to other services.

File your federal tax return today and be eligible to receive stimulus checks!

Written by Michelle H.

December 4, 2022 | | 4 minute read

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