Don’t miss this key June tax deadline: What the IRS wants you to know and who is affected

For the more than 8 million US citizens and green card holders, tax day comes a little later.

The IRS requires that a return be filed, even when residing or traveling abroad, and only around 500,000 people do so.

This year, the deadline for US citizens living abroad is 16 June, meaning that there are only a few weeks left to submit your return on time. The IRS can offer support to citizens living abroad who are required to submit a return, and they can be reached at 1-267-941-1000.

Who falls under this category of taxpayer?

The IRS uses the ‘physical presence test’ to decide if someone was living in a foreign country or countries for a long enough period to be considered a US taxpayer abroad. This test is flexible because it doesn’t require the 330 days to be in a row; the tax authority is just looking for people who spent that much time outside the country over a year.

The ASK a CPA YouTube channel offers support to taxpayers abroad by answering common questions that individuals in this situation often have.

Will passing the test hurt me in the future?

No. The test is not meant to keep tabs on taxpayers abroad, and it “doesn’t depend on the kind of residence you establish, your intentions about returning, or the nature and purpose of your stay abroad,” reports the IRS.

Automatic extensions have been granted

Contrary to a common belief among US residents living abroad, they are not exempt from filing with the IRS. Failure to do so can result in penalties and other legal consequences.

The IRS offers this group an automatic two-month extension each year. This year, the filing deadline was extended to 16 June, 2025 leaving under a month.

However, unlike taxpayers living in the US, an extension through 15 October 2024 can still be requested by submitting this Form to the IRS. “If you are a US citizen or resident living or traveling outside the United States, you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States,” warns the IRS.

Can foreign income be deducted from the US tax bill?

Earnings in other countries often follow different regulations from those in the United States. For example, many individuals living abroad may have foreign-earned income, which means they are not tied to a US employer. The IRS provides a tax exemption for this type of income up to a specific limit. For the tax year 2024, the IRS would tax up to $126,500 ($253,000 for married couples who file jointly, and both would report foreign-earned income) from their income

If your foreign-earned income falls below this threshold, you may not owe US taxes. However, it’s essential to remember that you still need to report this income to the IRS. Failing to comply could result in penalties and other legal complications, making it essential to understand and adhere to these reporting requirements.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.