2025 Tax Deadlines and Extensions for Americans Abroad

Why US Citizens Abroad Must File US Taxes

Although citizenship-based taxation is rare and most countries do not follow this type of taxation, it is the reality for US citizens. Any US citizen or Green Card holder living domestically or abroad will be required to file US taxes if their gross income exceeds a certain threshold. For example, single filers earning over Default String would be required to file US taxes in 2024.

April 15th: Payment Deadline for US Expats

Every American knows April 15th as the typical tax deadline date. With US expats, the April 15th deadline is more of a suggestion unless taxes are owed. If US taxes are owed, they must be paid by this deadline to avoid interest and penalties. The same rule applies to all US citizens – abroad or not.

Why would a US expat owe taxes? Here are a few reasons:

• Any US expat living in a country without a Totalization Treaty might need to pay social security tax on self-employment income (known as self-employment tax) in two countries. This would result in double taxation.
• Any US expats whose foreign earned income exceeds the exclusion amount of Default String could have to pay taxes because the local taxation rate is lower than the US tax rates.

Failure to pay by April 15th will result in interest and penalties. Therefore, paying taxes needs to be a top priority even before filing a US tax return.

June 15th: Automatic Expat Tax Filing Deadline

US expats who do not owe US taxes but still need to file will be granted an automatic two-month extension. This additional time ensures that all international documents are prepared for filing US taxes. Those who are not ready to file can request an additional extension, as described below. The June 15th deadline is not enough time; there is another extension for October 15th.

The June 15th deadline does not apply to US expats who owe taxes—if taxes are owed, they must pay by April 15th.

Please note that the June 15th deadline is only for federal tax returns for those living outside the US.

October 15th: Extended Deadline for Filing US Expat Taxes

If more time is needed, US expats can submit Form 4868 before June 15th to be granted an extension until October 15th. The October 15th expat tax deadline is recommended for all taxpayers with more complex tax situations, such as individuals with high net worth and multiple assets, but anyone can get this extension.

Please remember that these extensions are only for filing and not for paying owed taxes. Any outstanding taxes must be paid by April 15th.

FBAR Deadline: October 15th

While April 15th is the official deadline for the Foreign Bank Account Reports (FBAR), there is a 6-month automatic extension. That means October 15th is the effective deadline for filing FBAR. An FBAR must be filed if the maximum balance of all foreign financial accounts collectively exceeds $10,000 at any given time during the year. Even if they have exceeded $10,000 for only a few minutes, filing an FBAR will be required.

Please note that FBARs are separate from US tax returns. FBARs are not sent to the IRS, but to the FinCEN. Although, to simplify the process, use a US tax software like MyExpatTaxes. MyExpatTaxes, simplifies the process by filing both FBARs and tax returns from one platform!

November: IRS E-filing Shutdown

After the October 15th deadline, the IRS temporarily shuts down e-filing. This period generally spans from mid-November to mid-January, meaning US taxpayers cannot e-file during this time. The IRS shutdown is very inconvenient for all involved. However, the shutdown is necessary to maintain, update, and optimize the IRS e-filing platform.

In order to avoid long delays from having to paper file, make sure to file before mid-November. Otherwise, there are likely to be penalties with the interest. So, try to file as early as possible.

In 2024, the IRS Shutdown starts on November 30th at 11:59 pm EST

December 15th: Tax Filing Deadline for Expats

If filing before October 15th is not possible, another extension option exists. Unlike the October 15th expat tax deadline, the December 15th deadline is not automatic. The December 15th expat tax deadline is granted on a case-to-case basis. In order to be given these additional two months, a handwritten letter must be sent to the IRS detailing why more time is needed.

This extension is mostly for unusual or complex cases, such as unforeseen delays with gathering documents. If this case sounds familiar, it is best to mail an extension request before the October 15th deadline. Otherwise, there will likely be penalties!

For more information on how to do this, check out this blog about ‘US tax extensions.’

Avoiding Expat Tax Penalties

Failure to meet any US tax obligations will result in penalties. Here are some of the main ones to be aware of:

1. Failure to File: A 5% penalty on the taxes owed for every month the tax return is late, up to a maximum of 25%.
2. Failure to Pay: A 0.5% monthly penalty on unpaid taxes, also capped at 25%.
3. Interest on Due Taxes: Interest continues to accrue on any unpaid tax amounts.
4. Failure to File FBAR: Every unfiled FBAR could result in up to $5,000 for each violation

Streamlined Procedure: Didn’t Know to File From Abroad?

For individuals who had no idea they needed to file US taxes when moving abroad, there is a procedure known as the Streamlined Procedure. This allows US expats to catch up on overdue FBARs and tax returns – without penalties. By using the Streamlined Procedure, US expats can file three prior tax returns and up to six FBARs to become compliant once again. Although, there are additional eligibility requirements that must be met in order to qualify.

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State Taxes for Expats

In some states, US expats may still be subject to residency rules, meaning that even living abroad, they must file state income taxes. This is common for states like California, New York, Virginia, and a few others that are aggressive toward expat taxpayers. Depending on whether the expat has earned income in the US or has ties to the state, they may need to file state taxes by April 15th.

Since each state has its own expat tax deadlines and extensions, check the official state website to see what specific requirements apply.

Simplify US Expat Taxes with MyExpatTaxes

There are many aspects to consider when moving abroad, but an excellent start is staying informed about US expat tax filing deadlines. From FBARs to automatic filing, MyExpatTaxes is ready to help you stay compliant without additional stress. File today to ensure a timely US tax return!