What You Need To Know About American Taxes While Living Abroad

November 16, 2022
Photo by Kelly Sikkema on Unsplash

If you are living abroad, you are probably already aware that you will have to pay expat taxes unless you are a citizen of the country that you have moved to. This can be a really intimidating process, especially during the first year that you are abroad, but don’t worry! There are some tips that you can use to make sure that you are not making errors when you file your expat taxes for your time living outside your home country.

For those who are US citizens, there are some things to keep in mind when you are filing taxes while you are living abroad. Be sure that you do not wait until the very last minute to file, and be sure that you use all the right resources to make the process of filing your expat taxes simple and straightforward.

Things to Know About Filing US Taxes While Living Abroad

1. There Are Tools That Can Help

US Expat Tax can be complex to file, and you might not want to go it alone. Thankfully, just like when you file your taxes at home, there are tools that can help you to get your taxes done online with ease. Using a tool such as Expatfile.tax: The #1 US Expat Tax Filing Software will give you the support that you need to file your taxes, even if there are complex considerations that need to be attended to and addendum forms that you need to fill out.

Sometimes having a software tool to give you guidance is all that you need to get your US expat taxes taken care of in a timely fashion each tax season.

2. Know When Your Taxes Are Due

Your expat taxes are due on April 15th of each calendar year. You will want to make sure that you have your filing completed and postmarked no later than the 15th, or it will not be considered to have been filed timely. There are some exemptions for this if a holiday falls on the 15th, but overall, getting your taxes in before the last day possible is always a good idea.

You will need to be sure that you also look into the rules and requirements for those who are military service people and those who have been living in Puerto Rico if either of these conditions applies to you for the tax year in question.

3. You Will Have to Pay Balances Due

If you have filed your taxes and you are shown as owing a balance, you cannot ignore this balance that is due until next tax season. Don’t worry though, there are many options for payment to the IRS, even if you are living abroad. You can pay online, or you can reach out to the IRS to get assistance with your payment process if you need help. Balances owed must be paid as soon as possible to avoid fines, fees, and legal processes that you will not want to have to attend to.

4. There Are Online Resources to Help You

If you are still not sure about how to file your US taxes while living as an expat, the IRS has many guides that can help you to understand the process and to take care of your filing without issues. You can check out videos as well as interactive tools that will help you to understand everything about the filing process for expats who are living abroad. Online resources can make a big impact on the way that you file your taxes, and they can help you to be sure that you have not missed any important steps along the way.

5. You Will File Different Forms if You Are Not a Green Card Holder

Make sure that you know about the forms that you need to file if you are not a green card holder. Those who have had their green card taken or who have surrendered their green card will have to file for nonresident alien tax, while green card holders will not have to file this form. These kinds of considerations can have a big impact on your filing process and can make it much more complicated to file if you are not aware of the process for each situation.

6. You Can Still Use Deductions

Just because you are living abroad as an expat does not mean that you cannot take advantage of deductions that US residents can access. You will need to check into all the details of each of these deductions, but often you can claim things like foreign tax credits and other income-based deductions. Your unique tax situation can impact deductions that you can claim, just like when you file your taxes at home in the US.

Filing Taxes as an Expat is Actually Relatively Straightforward

If you have been worried about filing your taxes while living abroad, the tips in this guide will help you to make sense of the process. You should make sure to use all of the various tools and different tip sheets that are offered by the IRS, and make sure as well that you take advantage of software that is used specifically for those filing taxes while living abroad. There is no reason to make the process of filing your taxes any harder than it has to be, and these tips and tricks can make sure that you don’t miss a single step.

Always remember that you will need to pay any balance that is owed as soon as possible and that you must file by April 15th of each tax year. Getting your taxes in early can help you to stay ahead of any items that have been missed or need to be adjusted as well. You do not want to be scrambling to get more forms filled out the day that taxes are due!

Taking care of filing your expat taxes can be simple when you use the tools and advice in this guide and the right tax filing software for your specific tax needs.

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