2025 US Tax Filing Guide for Americans Abroad
If you’re a US citizen or Green Card holder living outside the US in 2026, you’ll likely need to file a US tax return.
The good news? Although the US taxes worldwide income, most people abroad don’t end up paying any US tax at all. With the right exclusions and credits in place, double taxation is rare — and that’s exactly what we help you avoid.
Where should we send your free guide?
Let’s go through the key questions most expats ask, one at a time.
Do US expats need to file a return for tax year 2025?
Yes. If your worldwide income for 2025 is above the IRS filing thresholds, you must file a US tax return in 2026 even if you live abroad. The 2025 tax year thresholds are:
- US$15,750 for single filers
- US$31,500 for married filing jointly
- US$23,625 for head of household
- US$5 for married filing separately with a foreign spouse
- US$400 for self-employed
These thresholds rise slightly every year with inflation. Many expats end up needing to file without realizing it, especially if their foreign salary converts to a higher amount in US dollars.
What life situations change how you file as an expat?
Moving abroad doesn’t just change where you live; it can also change how your US taxes work. A lot of expats assume their setup is straightforward, but some scenarios can shift your filing requirements, such as:
- A mid-year move
- Working remotely for a US employer
- Being married to a non-US spouse
- Moving to a high/low tax country
Each situation affects your taxes differently, so it helps to understand your category early. That way, you avoid mistakes and claim the benefits you’re entitled to.
What IRS forms do expats usually need?
Federal tax forms get more complex once you move abroad. Once you live overseas, the IRS may require more forms than a typical US tax return. Most expats who will file in 2026 will work with a mix of:
- Form 1040
- Form 2555 (Foreign Earned Income Exclusion)
- Form 1116 (Foreign Tax Credit)
- Schedule C & SE (if self-employed)
Other expats with foreign assets or business interests will be required to file additional forms, like:
You won’t need all of these, but identifying the forms that apply to you is essential. Missing one can lead to significant penalties.
How can US expats avoid double taxation?
Most expats worry about being taxed twice and for good reason. Fortunately, three major tools exist to protect you in the 2025 tax year:
- Foreign Earned Income Exclusion (FEIE): up to US$130,000 excluded
- Foreign Housing Exclusion: up to US$39,000 in qualified expenses
- Foreign Tax Credit: dollar-for-dollar credit for foreign income taxes
No single option fits every expat. The right choice usually comes down to two factors:
- How your country taxes income, and
- The type of income you earn.
Each path leads to a different strategy. The full guide walks through each scenario more slowly.
Do self-employed expats still pay US taxes?
Yes. Self-employed expats generally owe US self-employment tax at a rate of 15.3% unless they live in a country that has a Social Security agreement (a ‘totalization agreement’) with the US.
If you run a business abroad, work as a contractor, or operate a foreign company, the rules shift again.
