Do I have to file US taxes if I live abroad?
Published on October 08, 2021
Updated on April 11, 2025
Reviewed by
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
Do I have to file taxes when I live outside the United States?
If you’re a US citizen, dual citizen, or Green Card holder living abroad, you’re generally required to file a US federal tax return every year.
You’ll need to file a 2025 US tax return when your annual worldwide income exceeds any of these thresholds:
- If you’re single with a yearly income of over US$14,600.
- If you’re married to an American or a Green Card holder with a joint income of over US$29,200.
- If you’re married to a non-American and your total income is over US$5 (that’s not a typo).
- If you’re Head of Household (married or divorced with US dependents) with a total income over US$21,900.
- If you’re self-employed or have any freelance income during the year over US$400.
It is important to note that you need to convert your income into US dollars and compare it to the filing thresholds above.
What forms do I need to file when I live abroad?
Here are some of the specific forms that expatriates may need to file:
- Form 1040: Also called the US Individual Income Tax Return. This is the main part of your federal tax return along with many other forms.
- Form 8621 (PFIC): This is used to report certain investments you may hold outside of the US.
- Form 5471: If you own 10% or more of a non-US company, you may need to file this form. Form 5471 is the foreign corporation return.
- Foreign Bank Account Report (FBAR): If you have a non-US bank account with an aggregated value exceeding US$10,000 at any time during the calendar year reported, you need to file this.
- Form 8858: This is needed if you have any self-employed income or freelance income to report.
- Form 3520 & Form 3520-A: If you have certain transactions with foreign trusts, pensions, and retirement accounts, you’ll need to file this.
What about state tax returns?
Certain US states also require state tax returns from their citizens, which are separate from federal tax returns. You can check here if your state requires you to file.
There is a potential need for US citizens living abroad to file state taxes. Learning about your state tax obligations including how residency status affects it and strategies to avoid state taxes.
How do I file US taxes online from abroad?
- IRS free file: A program by the IRS in collaboration with several tax software providers to offer free federal tax filing. However, not all providers support US expats.
- Tax software: Specialized tax software for US expats to cater to their unique situations and additional requirements
- Online tax service: This is for Americans with a more complicated situation abroad or who don’t know where to start.
Can I prepare and file my own tax return?
With current technology, it is possible to prepare and file your own tax return from abroad. However, this is recommended for Americans with simple situations since the software will only rely on your information.
If you’re 100% sure you fully understand what information needs to be reported to the IRS, you can use specialist “expat” tax software such as Top Tax. Top Tax is self-filing US tax software designed for US citizens and Green Card holders living outside the US.
When do these forms need to be filed?
The deadline for filing your federal tax return, also known as Form 1040, is usually April 15th, but if you live abroad, you are automatically granted a two-month extension to June 15.
However, even if you apply for an extension, you still need to pay taxes by April 15. If you don’t, interest will apply from April 16 onward.
For FBARs, the form doesn’t go to the IRS, and it’s filed online directly with the US Treasury. It needs to be filed by April 15, but you will also get an automatic extension until October 15.
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.
Connect with over 10,000+ expats today!
Embarking on an international journey shouldn’t mean navigating the complex world of US taxation alone. If you’re living and working abroad, our friendly, supportive Expat Tax Online Help Facebook group is here to assist. We’ve designed a community that serves as a comprehensive guide and resource platform tailored for US expats.
How can I pay my taxes abroad?
You can use online platforms like the IRS Direct Pay platform or the Electronic Federal Tax Payment System (EFTPS).
Alternatively, pay by credit/debit card through IRS-approved third-party providers. If your foreign bank account supports US dollar payments, you can wire transfer payments directly to the IRS.
How do I get a Tax Identification Number (TIN), ITIN, or SSN?
Your TIN is the same as your Social Security Number (SSN). If you already have your SSN, that’s all you need to file your US tax return.
Many US citizens who haven’t lived in the United States or left when they were very young may not have a Social Security Number or are unaware they have one. You can contact the Social Security Office to check.
What tax credits and deductions are available for me?
Here are some credits and deductions you can claim to reduce your US tax liability:
- Foreign Tax Credit (FTC): You can claim a dollar-for-dollar credit for income taxes paid to your host government.
- Child Tax Credit: You can claim this to reduce your tax liability by up to US$2,000 per child.
- Foreign Earned Income Exclusion (FEIE): This allows you to exclude a portion of your foreign income from US taxable income for up to US$130,000.
- Foreign Housing Exclusion or Deduction: This lets you exclude or deduct certain housing expenses, such as rent and utilities, from your income.
Is it true that I can claim the Child Tax Credit Refund abroad?
Yes. There are criteria that you have to meet and it’s important to know that you can’t claim the CTC if you file Form 2555 – the Foreign Earned Income Exclusion. Still, thousands of American families living in another country get refunds yearly without paying a single cent of tax to the US.
For 2025, the Child Tax Credit Refund is up to US$1,700 per eligible child. You can also claim the last three years as long as you qualify for each.
Where can I check the status of my tax refund?
You can access the status of your tax refund through the IRS’s “Where’s My Refund?” tool online. Alternatively, you can call the IRS Refund Hotline at 1-800-829-1954.
Be prepared to provide your SSN or ITIN, filing status, and the exact refund amount on your tax return.
What if I’m many years behind on filing my US tax returns?
Don’t panic. The IRS offers a special tax amnesty program called Streamlined Offshore Filing Procedure. It’s designed specifically for US citizens and Green Card holders living abroad who genuinely didn’t know they had to file US tax returns.
The program makes it easy to catch up and become fully US tax compliant without the fear of fines and penalties. It was an honest mistake; the Streamlined Procedures are your best option to catch up penalty-free.
How long does it take the IRS to process a tax return?
If you file your tax return on time (by June 15) and everything is proper with no questions, it usually takes the IRS six to eight weeks to process a tax return and give any refunds from the date they receive it if you use the traditional paper document format.
How long should I keep my tax returns?
As a general guideline, you should aim to keep your tax returns for at least three years prior to your most recent filing or due date to file, whichever is later.
As part of the Statute of Limitations, the IRS may ask for proof of your returns for a period of three years following your last return, presuming there were no issues with your return.
What happens if I decide not to file?
There can be several severe consequences for not filing your US tax return. Here are a few:
- Penalties: The IRS imposes penalties for late filing and payment, starting at 5% per month and going up to 25%. Failing to file Foreign Bank Account Reports (FBAR) can also result in US$10,000 penalties per account.
- US passport: Your US passport can be revoked if the IRS claims you owe them more than US$62,000.
- Pensions and retirement account: If you have certain types of pensions or retirement accounts outside of the US that haven’t been reported on a tax return, you can be fined up to US$10,000 per account.
- Legal Consequences: In extreme cases, you could be filed with criminal charges, including fines and imprisonment, primarily if the IRS determines tax evasion or fraud involved.
Do I still have to file US taxes if I retire from abroad?
Unfortunately, it is a responsibility that will never leave you. Retired US citizens and green card holders abroad must still file a tax return annually. The US even taxes retirement income from foreign sources.
If you’ve already decided to permanently reside abroad, you have the choice to renounce your US citizenship so that you won’t have to file yearly returns and pay taxes in the US.
