Current Tax Filing Refresher
For US Citizens Abroad
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Knowing the 2023 expat income tax deadlines and extensions is an important step to getting US expat taxes right. With the upcoming tax year bringing in changes, we can honestly say that the filing deadlines and extensions are getting back to normal.
April 15th – US Tax Payment Deadline
Expats who owed US taxes should have paid by the April 15th, 2024.deadline, if you're past due we can help, give us a call.....
Most expats can ignore the April 15th date because they do not owe US taxes. This is due to tax credits like the Foreign Tax Credit, a dollar-for-dollar (or euro, pound, yen, etc.) credit from the income taxes paid to your host country against US tax liability.
Typically, US citizens abroad who owe do so because they are usually self-employed, high-income earners or live in a low-tax country.
June 17th 2024 – Normal US Tax Filing Deadline for Expats
American expats have a special automatic two-month extension to file their US expat taxes. This separates them from Americans stateside. This date allows expats more time to gather their documents and file their foreign taxes before they file their US taxes. Lucky for us, June 15th falls on a weekend in 2024, so it’s extended even further to June 17th, 2024.
October 15th – Expat Extended Tax Filing Deadline
Stuff happens... like forgetting, not knowing you have to file, or needing more time. That’s why there is an extended filing deadline.
Need your Form 4868 filed, give us a call, it's a free service, plus, even if you file an extension through us you will not be obligated to file the actual return through us but it does give you the opportunity to discuss your situation fully to make an informed decision when you do file.
October 15th – FBAR Deadline
All US citizens abroad that have a total of $10,000 deposited in financial accounts overseas must file an FBAR.
The FBAR is the Foreign Bank Account Report and is an additional annual filing requirement if expats exceed the $10,000 threshold. This comes from FinCEN the Financial Crimes Enforcement Network. It’s FinCEN Form 114 although not a complex form to file, it is imperative to fill it out if you qualify.
Expats receive an automatic six-month extension to file the FBAR, moving from April 15 to October 16...
December 16th – Last Day to File US Taxes for the Season
December 16th, 2024, will be the very last income tax deadline for US citizens abroad. However, there is no way to send an electronic message to the IRS requesting this extension it must be done manually.
You must mail a letter to the IRS. This letter should contain the specific documents you need to obtain.. Plus, a reason why the IRS should grant you the extension. Plan ahead and send this letter as soon as possible. Make sure there is enough time for the IRS to receive your letter and grant the extension before December 16th....
Keep in mind, though, you will receive no confirmation from the IRS that your extended time has been given. But you can have your letter tracked with a mandatory signature required, so you know it arrived on time.
Your Obligation as an American Abroad
Regardless of where you live as an expat, you must fulfill and meet the US tax filing requirements Knowing the IRS minimum income thresholds helps expats determine if they need to file US taxes. If you exceed one of these thresholds, you must file taxes if when your gross 2023 income was at least....
$13,850 for filing single
$5 for married filing separately
$27,700 for married filing jointly
$20,800 Head-of-household
$27,700 Qualifying Widower
$400 for self-employment income
The good thing about filing expat taxes is that Americans abroad can claim tax credits and exclusions to save money and prevent double taxation. For example, the Foreign Earned Income Exclusion, or FEIE, allows expats to exclude up to $120,000 of foreign-sourced income for the 2023 tax season (in 2024). Foreign sourced income is solely money you made outside the US.
We hope this tax deadlines and extensions post was helpful and kept you informed. There is also time to make up previous years of tax filings through our friendly and affordable "Streamlined Procedure" program. Save big and prevent penalties through this IRS tax amnesty feature today.
This article is provided courtesy of Abacus Financial Services Newark, Delaware offering highly personalized financial solutions.
Available to All US Citizens Nationwide and Abroad Since 1993....