How First-Time Expat and Gen Z Filers Tackle Their Taxes

Updated on March 31, 2026

Reviewed by a Greenback Expat Tax Accountant

Filing taxes is complicated enough domestically, but Americans living abroad face an additional layer of complexity that most aren’t prepared for. To understand how these groups approach tax season, Greenback surveyed 393 Americans living overseas who are likely first-time expat filers and 726 Gen Z Americans to explore their tax knowledge, concerns, and information sources.

The findings reveal significant gaps in tax literacy for both groups, with real consequences for compliance.

First-Time Filing Overseas

Filing taxes can be a daunting task, but even more so for Americans living abroad, especially if they’re first-time filers. Below, we explore how expats are approaching these challenges.

Nearly 1 in 3 American expats are unaware of their requirement to file U.S. taxes while living abroad.
Among those aware of their requirement to file, a small fraction (3%) feel they understand their tax responsibilities extremely well.
40% only feel somewhat well-informed, and 1 in 10 don’t understand their taxes at all.
The primary sources they use for tax information are tax advice websites and online resources, with 48% using platforms like IRS.gov and tax forums.
39% have sought professional tax advice, and 20% plan to. 1 in 10 use TikTok for information on U.S. expat taxes.
25% of American expats are unsure about filing and paying U.S. taxes, and the same percentage are unwilling to do so.

Additional Concerns of Filing U.S. Taxes as an Expat

The survey asked expats to identify their top concerns. The results reflect common pain points Greenback sees across its client base:

Concern	% of Respondents
Difficulty with U.S. tax laws while living abroad	62%
Potential double taxation	53%
Finding reliable tax advice or services	43%
Reporting foreign income and assets	42%
Complying with deadlines and filing extensions	25%

A Gen Z Perspective

As the youngest tax-paying Americans, Gen Z is confronting its own set of tax obstacles.

Nearly half of Gen Z taxpayers don’t know how to file taxes, and a significant portion (27%) has already gone through the process at least once.
A third of Gen Zers feel anxious or overwhelmed about the tax process, and more than a quarter feel unprepared for the upcoming tax season.
Gen Z is most likely to ask friends and family for help with tax filing.
Only 10% of Gen Z know the exact tax rate applicable to their income level, 42% have a general idea but are unsure of the precise rate, and 49% don’t know.

Gen Z’s Tax Terminology Gap

The survey tested Gen Z’s familiarity with common tax terms. The results show a substantial knowledge gap that extends well beyond niche concepts:

Tax Term	% Who Don’t Know the Meaning
Nontaxable income	66%
Child tax credit	65%
Tax credits	64%
Capital losses	63%
Adjusted gross income	63%
Tax deductions	56%
Write-off	53%
Filing status	48%
Tax brackets	46%
Deductible	40%
401(k) contributions	20%
W-2 form	19%

What This Means for Expats

These findings highlight a core problem: a significant share of Americans abroad don’t know they need to file, and among those who do, most don’t feel confident about the process.

The good news is that the U.S. tax system provides meaningful relief for Americans abroad. The Foreign Earned Income Exclusion allows you to exclude up to $130,000 of foreign earned income (2025 tax year) from U.S. federal tax. The Foreign Tax Credit can offset your U.S. liability dollar-for-dollar based on taxes paid to your host country. Two out of three expats owe $0 in U.S. taxes after applying these benefits.

For those who’ve fallen behind, the IRS offers the Streamlined Filing Compliance Procedures, a program that allows non-willful expats to catch up on three years of tax returns and six years of FBARs with no IRS penalties.

Whether you’re filing for the first time or catching up after years abroad, working with an expat tax professional removes the guesswork and ensures you claim every benefit available to you.

Methodology

We surveyed 393 Americans living overseas who are likely to be filing their taxes as expatriates for the first time, aiming to understand their perspectives and knowledge about the tax filing process in this new situation. We also surveyed 726 Gen Z Americans to explore their feelings about paying taxes and their familiarity with tax concepts. Note: Some percentages don’t add up exactly to 100 due to rounding.

About Greenback Expat Tax Services

Greenback Expat Tax Services is an American company founded in 2009 by U.S. expats for expats. We help Americans living abroad file their U.S. taxes correctly, with a team of CPAs and Enrolled Agents across 14 time zones. Over 23,000 expats have trusted Greenback with their taxes.

Fair Use Statement

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This article is for informational purposes only and should not be considered tax advice. Individual circumstances vary, and you should consult a qualified tax professional for advice specific to your situation.