We’re nearly a quarter of the way through 2018, and that means now is the time to start filing your 2017 expatriate taxes. We’ve compiled the details to ensure you file your tax return on time and don’t send the IRS more money than necessary.
Federal Tax Returns
For the taxpayers living in the United States, Tax Day is Tuesday, April 17th, 2018 thanks to the 15th falling on a Sunday and Emancipation Day being observed on Monday, April 16th. If you are an expat living outside of the United States, the IRS grants you an automatic extension to June 15th. But that doesn’t mean you can ignore the April 17th deadline; if you expect to have any expatriate taxes due, the deadline for payment remains April 17th, 2018. If you make a payment after that date you will be responsible for interest on any amount owed until the IRS receives your payment. Also, if you fail to pay at least 90% of the tax due the IRS may also assess a late payment penalty in addition to interest.
If you do not think you can file by the June 15th deadline and you do owe tax, you may want to make an extension payment and file for an extension that would extend your tax return due date to Oct. 15th.
State Tax Returns
If you worked in your home state at any point during the year or own property in the state you may have to file a State Tax Return. Some states are less lenient than others to expats. For example, states where you are likely to have to file a state return include California, South Carolina, and New Mexico; these states see their taxpayers as assets and will leave the burden of proof on you to show that you are no longer a resident. Most state deadlines follow the federal deadline of April 17th but some have their own due date requirements.
Foreign Bank Account Reporting (FBAR)
Recently, the due date for the FBAR was changed. The FBAR is now due on April 17th in 2018, the same due date as the Federal Tax Return. If you are not ready to file the FBAR by April 17th you can extend to Oct. 15th. The FBAR is automatically extended to Oct. 15th as long as you file for an extension for your Federal Tax Return by April 17th.
Questions About Your Specific Expatriate Taxes?
The Greenback experts can help you meet the deadline and avoid paying interest! Get started with Greenback so you don’t overpay on your expatriate taxes.