Living abroad can and should be one of life’s great adventures, however for Americans federal tax requirements become more complex once you are living outside the US, and in some cases a lot more, depending on your particular situation.
Alongside US federal obligations, Americans who are residents in another country will also probably have parallel filing requirements in their new country of residence.
With proper preparation though, the extra tax requirements of living abroad should in no way become a burden that hinders your expat adventure.
The first step towards ensuring a smooth ride to compliance is understanding exactly what is required, and by when.
Federal tax filing dates for Americans living abroad are slightly different to those for Americans living in the US. This is due to the fact that the IRS recognizes that filing requirements for expats are more complex, and so offers an automatic extension, and a further extension can be applied for as well.
Here are the key tax filing dates that US expats should bear in mind throughout the year:
Tax Day is still Tax Day for expats, and any tax owed to the IRS must be paid by April 15th following the year the tax relates to.
Americans living abroad on April 15th get an automatic tax return filing extension until June 15th. If you have more than $50 thousand in foreign financial assets, you’ll also need to fill in and attach form 8938 to your return. This is required under the Foreign Account Tax Compliance Act, or FATCA.
From 2017, FinCEN form 116, otherwise known as the Foreign Bank Account Report, or FBAR, is due on the same day.
If you are struggling to file your return or FBAR by June 15th, you can request a further extension online to October 15th. This is the final filing date before you’ll start incurring penalties.
These are the key tax filing dates for Americans living abroad. If you require any assistance with regard to your return, don’t hesitate to get in touch with us. We are specialists in making the filing process quick, smooth, and stress free, all for a fixed flat fee.
With clients in over 150 countries, Tax Partners is a leading US expat tax services provider for the 9 million Americans living abroad. If you have any questions regarding your tax situation, don’t hesitate to get in touch for some advice.