TAX SEASON 2024
Can you file your taxes if you are living abroad?
If your gross income exceeds the filing threshold you are obligated to file a tax return, even if you are living outside the United States.
Yes, if you are a United States citizen or resident alien living abroad, you are still required to file US federal income tax returns. The US taxes its citizens and residents on their worldwide income, regardless of where they live.
The IRS gives Americans living abroad an extra two months to file without requiring an etension, meaning the deadline is 15 June instead of April 15. While it is possible to file by mail, living abroad means this is particularly difficult so it is recommended to file electronically.
Filing US taxes while living abroad
The Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit can significantly influence your tax liability.
Who qualifies for the FEIE?
You must be:
- A US citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
- A US resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
- A US citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
If you qualify, the FEIE allows you to exclude a specific amount of foreign-earned income from taxation, which for this year’s tax season is $120,000. File Form 2555 to claim this exclusion, providing details about your foreign residence and income.
If you paid income taxes to a foreign country, you may be eligible for the Foreign Tax Credit. File Form 1116 to claim this credit, helping prevent double taxation on the same income.