Time flies when you’re having fun abroad! But, today’s the day for expats to file their US Federal Tax returns and, if applicable, their FBARs (Foreign Bank Account Reporting). Let’s dive into a few questions to make sure you’ve completely tackled this last tax deadline of the year, and if you’re not, find out how you can become compliant with the IRS.
What is the October 15th Deadline For?
As you probably know, April 17th was the regular deadline for American taxes, however, expats receive an automatic two-month extension through June 15th. If you filed for a tax extension using form 4868, then your taxes are due October 15th. This is the final tax deadline of the year. Keep in mind that interest accrues on any taxes owed beginning April 17th.
What Needs to be Filed?
If you have earned income, then you will need to file a Federal Tax Return no matter your country of residence. (The US along with Eritrea are the only two countries in the world with citizenship-based taxation.) Depending on which state you moved from, you may also need to file a state tax return. Additionally, you may need to file FBAR with the Treasury Department or FATCA Form 8938 depending on whether or not your foreign accounts meet the thresholds. Other forms may also be required depending on your financial situation – for example, if you’re self-employed, a Shareholder of a Passive Foreign Investment Company (PFIC), or an owner of any foreign trusts.
What if it’s Been a Few Years Since I’ve Filed?
If you’re several years behind on filing your expat taxes, not to worry! You could qualify for the Streamlined Filing Procedures, a program to help taxpayers get caught up on 3+ years of taxes without paying penalties. You may also be interested in joining this free webinar on late filing Tuesday, October 30th to learn more about the Streamlined program and better understand if you qualify.
What if I Missed the Deadline?
Get started today by reaching out to Greenback. Our Greenback Tax Companion makes the process hassle-free and our experienced team of tax accountants can help get you back on track.