Resource hub

U.S. Expat Tax Center

U.S. citizens and green card holders are taxed on worldwide income wherever they live. This center explains filing requirements and deadlines abroad, the Foreign Earned Income Exclusion and the foreign tax credit, foreign account reporting, and the options available when past years were never filed.

Key questions

Does a U.S. citizen living abroad still have to file a U.S. tax return?Usually, yes: U.S. citizens abroad must file a federal income tax return when they meet the applicable income thresholds or another filing requirement. Citizenship generally means reporting worldwide income, regardless of where you live or receive payment. Foreign tax credits and exclusions may reduce tax, but they do not automatically eliminate filing obligations.
When are U.S. tax returns due for Americans living abroad?Usually, a qualifying U.S. citizen or resident alien abroad receives an automatic two-month extension to file a calendar-year federal income tax return, generally from April 15 to June 15. The overseas extension also allows payment during that period, but interest generally runs from the regular April due date on unpaid tax. Additional filing extensions do not generally extend the time to pay.
I am an American abroad who never filed U.S. taxes. What can I do?You may be able to catch up through an IRS compliance procedure, but the right approach depends on your filing history, residency, conduct and any IRS contact. Eligible taxpayers whose failures were nonwillful may qualify for the Streamlined Foreign Offshore Procedures. Do not assume that filing a few late returns by itself resolves all earlier tax and foreign reporting issues.
Do Americans living abroad pay U.S. self-employment tax?Usually, yes: U.S. citizens and resident aliens working for themselves abroad remain subject to U.S. self-employment tax. The Foreign Earned Income Exclusion does not remove that tax, even when it reduces income tax to zero. A social security totalization agreement may assign coverage to one country and provide an exception when its requirements are met.
How does the foreign tax credit work?Usually, the foreign tax credit reduces U.S. income tax for qualifying foreign income taxes paid or accrued, subject to limits. For individuals, Form 1116 generally calculates the credit separately by income category. It is not an automatic refund of every foreign tax payment, and tax on income excluded under the Foreign Earned Income Exclusion cannot also generate a credit.
Can unused foreign tax credits be carried back or forward?Usually, eligible unused foreign income taxes can be carried back one year and then carried forward ten years. They remain subject to the foreign tax credit limitation in the same income category for the year used. Important exceptions apply: for example, unused taxes in the category for section 951A inclusions cannot be carried back or forward.
Who qualifies for the Foreign Earned Income Exclusion?You generally qualify for the Foreign Earned Income Exclusion only if you have foreign earned income, a tax home in a foreign country and meet either the bona fide residence test or the physical presence test. Eligibility also depends on your U.S. citizenship or resident-alien status and the test you use. The exclusion is claimed on Form 2555, and its maximum is inflation-adjusted annually.
How does the 330-day physical presence test work?The physical presence test generally requires at least 330 full days physically present in one or more foreign countries during any consecutive twelve-month period. A full day is a continuous 24-hour period from midnight to midnight, and the 330 days do not have to be consecutive. Passing this test is only one part of qualifying for the Foreign Earned Income Exclusion; you also need a foreign tax home and qualifying foreign earned income.

Forms to know

Penalties and relief

Terms explained

In-depth articles

Tax cases

Country guides

How Chirino USA can help

Discuss your situation with Chirino USA

Every situation depends on its facts. If you would like a professional to review yours, message us on WhatsApp, email us, or request a consultation — in English or Spanish.

Message us on WhatsApp Request a consultation Email us