Nathalie Goldstein, MyExpatTaxes‘ CEO, helps Americans stay tax-compliant while living abroad with her user-friendly US expat tax software.
For U.S. expats just beginning their new life abroad, it may be surprising to learn you must still file a tax return and report foreign-earned income no matter where you are in the world. On top of that, the IRS has different rules and deadlines that generally do not apply to taxpayers back home, some of which can be confusing to first-timers.
While most U.S. taxpayers are aware of the April 15 tax deadline, expats are granted an automatic filing extension of two months. Wondering how exactly this may affect you as a U.S. expat? Let’s take a look at everything you need to know to stay compliant with the IRS and avoid any penalties.
What is the June deadline?
For Americans living abroad, the IRS gives an automatic extension from April 15 until June 16 for the 2025 filing year. Typically, this extension is June 15, but this year the 15th falls on a Sunday, so the IRS grants expats an extra day to file.
The automatic extension is granted to any U.S. taxpayer living outside the United States and Puerto Rico on the regular due date of their return. This extension also applies to anyone whose main place of business is outside the United States and Puerto Rico, full-time expats permanently living abroad, those with overseas work assignments, digital nomads, and U.S military personnel stationed outside the country.
However, the June 16 deadline is strictly a filing deadline, not a payment deadline. If you owe U.S. taxes to the IRS for the previous year, any unpaid amount begins accruing interest after the April 15 deadline.
Expats do not need to file any forms to claim this automatic extension. If you qualify, this extension kicks in automatically.
What Expats Need To Do Before The Deadline
1. File your federal tax return: Include any required foreign income exclusions (e.g., Foreign Earned Income Exclusion via Form 2555 or foreign tax credits via Form 1116).
2. Report foreign bank accounts: If the total value of your foreign accounts exceeded $10,000 at any time during the year, even if it was only $1 over the threshold, you must file an FBAR (FinCEN Form 114) by April 15 (with an automatic extension to October 15).
3. File Form 8938 (FATCA): Under the FATCA law, you must fill out Form 8938 if the total value of all your specified foreign financial assets in which you have an interest exceeds the appropriate reporting threshold.
4. Pay any taxes due: Interest on unpaid tax balances started on April 15, so the sooner you pay, the less you’ll owe.
What if you need more time?
Depending on how complex your tax return is, you may find yourself needing even more time to get everything together, for instance, if you are still waiting for documents from a foreign bank account. The good news is that the IRS allows U.S. expats to request a further extension to October 15 by filing Form 4868.
Keep in mind that this formal extension is not automatic—you must request it. If you file your return after the June 16 deadline without requesting additional time, you could face penalties.
To avoid penalties:
• Submit Form 4868 before June 16.
• File your return by October 15.
• Just like the June 16 deadline, the October 15 deadline is simply an extension to file, not to pay. Interest will continue to accrue on any unpaid taxes, so settle your balance as soon as possible.
Conclusion
Living abroad as an American expat can be an exciting and rewarding experience, but it comes with its own set of unique challenges as well. As a U.S. citizen, filing a tax return on your worldwide income and foreign assets is just a fact of life that will follow you no matter where you decide to settle.
Fortunately, the IRS’s extended June 16 deadline gives you a little more time to prepare and file your return, along with any applicable foreign tax credits and exclusions, saving you from unnecessary stress, penalties or unwanted surprises down the line. Just remember that any unpaid taxes are still due by the regular April 15 deadline. After that, you focus on what truly matters—enjoying an enriching life abroad.
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