U.S. citizens and green card holders living abroad must file U.S. tax returns regardless of where they live or how much they earn. This is due to the United States' unique citizenship-based taxation system, which taxes worldwide income for all U.S. citizens—even if you haven't set foot in the U.S. for years.

This comprehensive guide covers all U.S. expat tax filing requirements for 2025, including deadlines, required forms, extensions, penalties for non-compliance, and step-by-step instructions to stay compliant while minimizing your tax burden.

Who Must File U.S. Tax Returns from Abroad?

You must file a U.S. tax return if you are:

A U.S. citizen living anywhere in the world
A green card holder (permanent resident)
Meeting the filing threshold for income

2025 Filing Thresholds

Filing Status	Under 65	65 or Older
Single	$13,850	$15,700
Married Filing Jointly	$27,700	$30,700 (both spouses 65+)
Married Filing Separately	$5	$5
Head of Household	$20,800	$22,650

Important: If you're self-employed and earned more than $400, you must file regardless of the income thresholds above.

Expat Tax Filing Deadlines for 2025

Automatic 2-Month Extension

If you're living abroad on the regular tax deadline, you automatically receive a 2-month extension to June 15, 2025 (for 2024 tax returns) without filing any extension form.

Important: While you have until June 15 to file, any taxes owed are still due by April 15. Interest accrues on unpaid balances starting April 15.

Additional Extensions

October 15 extension: File Form 4868 by June 15 to extend to October 15
December 15 extension: If you need more time to qualify for FEIE (330-day test), write to the IRS requesting an extension to December 15

Required Forms for U.S. Expats (2025)

1. Form 1040 (U.S. Individual Income Tax Return)

Who needs it: Everyone filing a tax return

What it is: Your main tax return reporting worldwide income, deductions, and tax liability

Where to report foreign address: Line 1 of Form 1040 (enter your foreign address)

2. Form 2555 (Foreign Earned Income Exclusion)

Who needs it: Expats claiming the Foreign Earned Income Exclusion (FEIE)

What it is: Allows you to exclude up to $126,500 of foreign earned income from U.S. taxation (2025 limit)

When to use: If you meet either the Physical Presence Test (330 days abroad) or Bona Fide Residence Test

3. Form 1116 (Foreign Tax Credit)

Who needs it: Expats claiming the Foreign Tax Credit (FTC)

What it is: Allows you to claim a dollar-for-dollar credit for foreign income taxes paid to another country

When to use: If you paid income tax to a foreign country and want to offset your U.S. tax liability

4. FinCEN Form 114 (FBAR - Foreign Bank Account Report)

Who needs it: Anyone with foreign financial accounts exceeding $10,000 aggregate at any point during the year

What it is: Reports all foreign bank accounts, investment accounts, and certain foreign financial accounts

Deadline: April 15, 2025 (automatic extension to October 15 if you miss it)

Filed separately: NOT filed with your tax return; filed electronically through FinCEN

Penalties: Up to $10,000 per violation for non-willful failure; up to $100,000 or 50% of account balance for willful failure

5. Form 8938 (FATCA - Foreign Account Tax Compliance Act)

Who needs it: Expats with foreign financial assets exceeding:

$200,000 on the last day of the year OR $300,000 at any time (single filers living abroad)
$400,000 on the last day of the year OR $600,000 at any time (married filing jointly, living abroad)

What it is: Reports foreign financial assets (accounts, stocks, bonds, etc.)

Filed with: Your tax return (Form 1040)

Overlaps with FBAR: Some accounts must be reported on both FBAR and Form 8938

6. Schedule C (Profit or Loss from Business)

Who needs it: Self-employed expats, freelancers, consultants, online business owners

What it is: Reports self-employment income and expenses

7. Schedule SE (Self-Employment Tax)

Who needs it: Self-employed individuals with net earnings of $400+

What it is: Calculates self-employment tax (Social Security + Medicare = ~15.3%)

Note: FEIE and FTC do NOT eliminate self-employment tax

Step-by-Step: How to File as an Expat

Step 1: Gather Documentation

W-2s or 1099s (if you have U.S. income)
Foreign income statements (employment contract, payslips)
Foreign tax returns and payment receipts (for FTC)
Foreign bank account statements (for FBAR/FATCA)
Travel records (dates of entry/exit from the U.S. for FEIE)
Rental/lease agreements (if claiming foreign housing)

Step 2: Calculate Your Foreign Earned Income

Convert foreign currency to USD using the IRS yearly average exchange rate
Report all income (wages, self-employment, investment income)

Step 3: Determine if You Qualify for FEIE or FTC

FEIE: Did you meet the 330-day Physical Presence Test or Bona Fide Residence Test?
FTC: Did you pay income tax to a foreign country?
Choose the option that minimizes your U.S. tax (or use both on different income)

Step 4: File Form 1040

Report worldwide income
Claim deductions and credits
Attach Form 2555 (FEIE) and/or Form 1116 (FTC)

Step 5: File FBAR (FinCEN Form 114)

If foreign accounts exceeded $10,000 at any time
File electronically at FinCEN's BSA E-Filing System
Deadline: April 15 (automatic extension to October 15)

Step 6: File Form 8938 (FATCA) if Required

If foreign assets exceeded thresholds
File with your Form 1040

Step 7: Pay Any Taxes Owed

Even if you file by June 15, taxes are due April 15 (interest accrues on late payments)
Pay via IRS.gov/payments

State Tax Considerations for Expats

FEIE and FTC only apply to federal taxes. If you're still domiciled in a state with income tax (California, New York, etc.), you may owe state taxes on your worldwide income.

Solution: Establish domicile in a zero-tax state like Florida, Texas, or Nevada before moving abroad. See Do Expats Pay State Taxes.

Penalties for Not Filing

Failure to File Penalty

5% per month of unpaid taxes (max 25%)
If you're more than 60 days late: minimum $485 penalty or 100% of tax owed (whichever is less)

Failure to Pay Penalty

0.5% per month of unpaid taxes (max 25%)

FBAR Penalties

Non-willful: Up to $10,000 per violation
Willful: Greater of $100,000 or 50% of account balance per violation

FATCA (Form 8938) Penalties

$10,000 for failure to file
Additional $10,000 per month (up to $50,000) for continued failure after IRS notice

Streamlined Filing Compliance Procedures (SFCP)

If you've failed to file in previous years, the Streamlined Filing Compliance Procedures allow you to catch up without penalties if your failure was non-willful.

Requirements:

File last 3 years of tax returns
File last 6 years of FBARs
Certify that your failure to file was non-willful
Pay any taxes owed plus interest (no penalties)

See IRS: Streamlined Filing Compliance Procedures.

Frequently Asked Questions (FAQ)

Do I have to file if I don't owe any taxes?

Yes, if your income exceeds the filing threshold. Even if you exclude all income with FEIE, you must file Form 1040 and Form 2555.

Can I file an extension?

Yes. Expats automatically get until June 15. You can extend further to October 15 with Form 4868.

What if I'm paid in a foreign currency?

Convert to USD using the IRS yearly average exchange rate for that currency.

Do I need to file state taxes?

Depends on your domicile state. If domiciled in a zero-tax state, no. If domiciled in CA or NY, yes. See Do Expats Pay State Taxes.

What if I missed previous years?

Use the Streamlined Filing Compliance Procedures to catch up without penalties (if non-willful).

Can I e-file from abroad?

Yes, most tax software allows e-filing. If you can't e-file, mail to: Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215 USA.

Do I report foreign retirement accounts?

Depends on the account type. Some must be reported on FBAR/FATCA. Consult a tax professional.

Final Thoughts

U.S. expat tax compliance is complex but manageable with proper planning. By understanding filing requirements, deadlines, and available tax benefits like FEIE and FTC, you can stay compliant while minimizing your tax burden.

Key takeaways:

File by June 15 (automatic extension for expats)
Claim FEIE or FTC to reduce/eliminate U.S. tax
File FBAR if foreign accounts > $10,000
File Form 8938 (FATCA) if foreign assets exceed thresholds
Establish zero-tax state domicile to eliminate state taxes
Use Streamlined Procedures to catch up if behind

Need help establishing a U.S. address for tax purposes? Your Tax Base provides Florida residential addresses with lease documentation, utility bills, and mail forwarding for expats. Plans start at $14.99/month. Contact us today.

US Expat Tax Filing Requirements 2025: Complete Checklist