Are You an American Living Abroad?

For most U.S. citizens and resident aliens living abroad, including those with dual citizenship, it’s time to mark your calendar: the deadline to file your 2024 U.S. tax return is June 16, 2025.

Living Abroad Qualifications

To qualify for the June 16 extension, you must be a U.S. citizen or resident alien, and on the regular due date of your return you meet the following criteria:

• You live outside the United States and Puerto Rico, and
• Your main place of business or post of duty is also outside the United States and Puerto Rico, or
• You are in military or naval service on duty outside the United States and Puerto Rico.

Reporting Income

U.S. citizens and resident aliens are required to file a U.S. tax return regardless of where they live or how much income they earn. Federal law mandates reporting of all worldwide income, including income from foreign trusts, banks or securities accounts.

Reporting Foreign Assets

If you own foreign financial assets at any point during the year, you may be required to file Form 8938, Statement of Specified Foreign Financial Assets, with your tax return. This applies if the total value of your foreign financial assets totals more than $50,000 on the last day of the tax year or more than $75,000 at any point during the tax year.

Reporting Foreign Financial Accounts

If the total value of your foreign financial accounts exceeded $10,000 at any time during 2024, you are required to file FinCEN Form 114 (FBAR), Report of Foreign Bank and Financial Accounts. This must be submitted directly to the Treasury’s Financial Crimes Enforcement Network (FinCEN), separate from your tax return.

If You Are an Expatriate

If you renounced U.S. citizenship or ceased being a lawful permanent resident during 2024, you must file a dual-status return and attach Form 8854, Initial and Annual Expatriation Statement, to certify compliance with expatriation tax requirements.

Extension Options

If you’re unable to file by June 16, you can request an automatic extension to file your return until Oct. 15, 2025, by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Keep in mind, this is an extension to file, not to pay. Any taxes owed must still be paid by June 16, 2025, to avoid penalties and interest.

Penalties for Not Filing

Failing to file your tax return can result in a penalty of 5 percent of the unpaid tax per month, up to a maximum of 25 percent. Additionally, failing to pay any taxes owed by the deadline results in a 0.5 percent monthly penalty, also capped at 25 percent of the unpaid tax.

If you need more information about filing your U.S. tax return for 2024 while living abroad, contact your Windham Brannon advisor today, or reach out to Brandi Samuel.