Do I have to file a US tax return?
Published on September 12, 2019
Updated on June 18, 2024
by Jeff Patterson
Jeff Patterson is an American living in Scotland and joined the team at Expat Tax Online after experiencing the complexities of living abroad with a family.
Table of Contents
Yes, if you are a US citizen or a US Green Card holder and your income exceeds certain low-income thresholds, you must file a US tax return each year, reporting your worldwide income.
What are the income thresholds for filing a tax return?
You must file a 2024 US tax return if your annual worldwide income exceeds these thresholds:
- Single: Gross annual income over $14,600
- Married Filing Jointly: Gross annual income over $29,200
- Married Filing Separately (to a non-American): Gross annual income over $5
- Head of Household: Gross annual income over $21,900
- Self-employed: Net annual income over $400
Do I need to file if my income isn’t from the US?
Yes, as a US citizen, you must report worldwide income on your US tax return, regardless of where it is earned.
Why use the IRS Streamlined Tax Amnesty Program?
It’s for American citizens that didn’t know they had to file US tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
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What if I am already paying taxes overseas?
You still need to file a US tax return reporting your worldwide income. However, you can claim the Foreign Earned Income Exclusion or Foreign Tax Credits to avoid double taxation. These credits can reduce your US tax liability potentially down to zero, but you must file to prove this to the IRS.
What if I haven’t filed for ten (10) years?
You may not need to go back and file all missed years. The Streamlined Filing Procedure allows you to catch up by filing the past three years of tax returns and six years of Foreign Bank Account Reports (FBARs). This can bring you into compliance without incurring penalties.
You won’t need to file for those earlier years if you qualify for the Streamlined Filing Procedure. This helps you become compliant without filing many years of back taxes.
What is the Foreign Tax Credit for?
The foreign tax credit helps you avoid double taxation. If you pay taxes in a foreign country, you can claim this credit on your US tax return to offset US tax liability on the same income. This credit is particularly beneficial in countries with higher tax rates than the US.
How can I get a refund if I don’t pay any US tax?
You can still get a refund if you qualify for certain credits, such as the Additional Child Tax Credit. This credit can provide a refund even if you owe no US tax as long as you meet the eligibility criteria.
I have two young children. Can I get a refund, and how much?
Yes, getting a refund is possible if you meet the Additional Child Tax Credit criteria. Generally, the refund can be up to $1,600 per child per year. If eligible, you can generally claim refunds for the past three years, even if you’ve already filed your US tax returns.
What about getting my Social Security if I move overseas?
If you have worked in the US for at least 10 years and contributed to the Social Security system, you should still qualify for your Social Security benefits when you retire, regardless of where you live. The Social Security Administration (ssa.gov) can provide details on your entitlements.
Should I get a Social Security Number for my child born outside the US?
Yes, it is advisable to register your child as an American and get their SSN. This can provide benefits and is necessary for filing tax returns as well as claiming the Additional Child Tax Credit refund. It’s best to do this early to avoid complications later.
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