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The IRS recently reported the guidelines and instructions on when and how to file if you were living or working abroad. Here is an outline of what you need to know.
Qualifying for the June 17 Extension
Taxpayers living and working outside the U.S. have until Monday, June 17, 2024 to file their 2023 federal income tax returns. Taxpayers in Israel, Gaza and the West Bank have until Oct. 7, 2024, to file
If a taxpayer uses a calendar year, their regular due date is April 15, and their automatic extended due date is June 15, but their due date is delayed until the next business day, June 17.
File to Claim Benefits
Many taxpayers living outside the U.S. qualify for tax benefits, but they are available only if a U.S. return is filed. The IRS encourages families to check out expanded tax benefits and claim them if they qualify.
Reporting is Required for Foreign Accounts and Assets
Federal law requires U.S. citizens and resident aliens to report worldwide income, including income from foreign trusts and foreign bank and securities accounts. Some taxpayers may also have to report specified foreign financial assets on Form 8938.
Reporting Foreign Financial Accounts to Treasury
Foreign financial accounts must be reported by electronically filing Form 114 with the Treasury Department's Financial Crimes Enforcement Network (FinCEN). The deadline for filing the annual FBAR is April 15, 2024, but there is an automatic extension until Oct. 15, 2024.
Report in U.S. Dollars
The IRS accepts any posted exchange rate that is used consistently for Form 114 and Form 8938.
Making Tax Payments Abroad
Taxpayers can pay their U.S. tax obligation electronically via their IRS Online Account, IRS Direct Pay or the Electronic Federal Tax Payment System.
Reporting for Expatriates
Taxpayers who relinquish their U.S. citizenship must file a dual-status alien tax return and attach Form 8854, Initial and Annual Expatriation Statement, with the IRS by the due date.
Extensions Beyond June 17
Taxpayers who can't meet the June 17 due date can request an automatic extension to Oct. 15 by filing Form 4868. Businesses must file Form 7004.
Extensions for Military Personnel
Military members and their spouses may qualify for an additional extension of at least 180 days to file and pay taxes
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Frequently Asked Questions
What is the tax filing deadline for U.S. citizens living and working abroad in 2024?
U.S. taxpayers living and working outside the country have until Monday, June 17, 2024, to file their 2023 federal income tax returns. This date applies because the regular extended due date of June 15 falls on a weekend, pushing the deadline to the next business day. Taxpayers located in Israel, Gaza, and the West Bank have an even later deadline of October 7, 2024.
What form do U.S. citizens abroad need to file to report foreign bank accounts, and what is the deadline?
U.S. citizens and resident aliens with foreign financial accounts must report them by electronically filing Form 114 with the Treasury Department's Financial Crimes Enforcement Network (FinCEN). The standard annual FBAR deadline is April 15, 2024, but an automatic extension is available until October 15, 2024. Some taxpayers may also be required to report specified foreign financial assets on Form 8938.
How can U.S. taxpayers abroad request an extension beyond the June 17 deadline?
Taxpayers who cannot meet the June 17, 2024, deadline can request an automatic extension to October 15 by filing Form 4868. Businesses seeking the same extension must instead file Form 7004. It's important to note that an extension to file does not eliminate any tax payment obligations.
What currency must foreign income be reported in, and what exchange rate should be used?
All foreign income must be reported in U.S. dollars when filing with the IRS. The IRS accepts any posted exchange rate, provided it is used consistently across both Form 114 and Form 8938. Maintaining consistency in the exchange rate used is the key requirement.
Do U.S. taxpayers living abroad still need to file a return even if they believe they qualify for tax benefits?
Yes, many taxpayers living outside the U.S. qualify for expanded tax benefits, but those benefits are only available if a U.S. federal tax return is actually filed. The IRS encourages all eligible families abroad to review available tax benefits and claim them by submitting a return. Failing to file means forfeiting any credits or benefits the taxpayer might otherwise be entitled to receive.
About the Author
Tax Writer
Markos Banos is a tax professional at IRS.com with expertise in U.S. federal and state tax law. Their articles are written to help taxpayers understand complex tax topics in plain English.