A first-timer's guide to filing your US taxes from overseas

Filing US taxes for the first time overseas can be challenging, as foreign income has some additional requirements. For instance, US expats with foreign financial accounts exceeding 10.000 US dollars may need to file an FBAR. To avoid double taxation, expats must use the Foreign Earned Income Exclusion or Foreign Tax Credit. For all first-time filers living overseas, here is an overview of what you should know before filing your US taxes.

Determining your filing threshold

Before even considering filing US taxes, first-time filers must determine whether they exceed the filing threshold. Find a list of the threshold amounts for your 2024 tax return below:

Deadlines for filing US taxes as an expat overseas

When filing US taxes abroad for the first time, it is essential to be mindful of these tax deadlines, or there will be penalties.

• April 15: The deadline for paying any owed US taxes
• June 16: Automatic two-month extension for filing US taxes overseas
• October 15: Additional extension deadline (submit Form 4868 by June 15) and the FBAR deadline
• December 15: Extension for special tax cases such as complex financial situations

These dates reflect the actual 2025 dates, taking holidays and weekends into account.

Avoid double taxation as a first-time filer

For expats filing US taxes for the first time, it is essential to understand which tax benefits can apply to your situation. The most common foreign tax benefits are the Foreign Earned Income Exclusion and the Foreign Tax Credit:

• The Foreign Earned Income Exclusion allows US expats to exclude up to 126.500 US dollars of foreign earned income from their 2024 tax return. To qualify, US expats must pass the Physical Presence Test or the Bona Fide Residency Test.
• The Foreign Tax Credit calculates the amount of foreign taxes paid and uses it as a credit on any US taxes owed.

Reporting foreign financial accounts

Here is when you need to report foreign financial accounts:

Foreign Bank Account Reporting (FBAR)

When it comes to foreign financial accounts collectively exceeding 10.000 US dollars at any during the year, you must file an FBAR. This form is important for preventing tax evasion and must be filed by October 15. Additionally, before submitting your FBAR, ensure it is being sent to the FinCEN (Financial Crimes Enforcement Network), as it should not be sent to the IRS.

FATCA compliance

Like the FBAR, the IRS has the Foreign Account Tax Compliance Act (FATCA), which requires foreign assets over a certain threshold to be reported on Form 8938. The threshold for FATCA Form 8938 depends on filing status, residency, and total asset value:

• If you’re filing as “single”, the threshold is 200.000 US dollars by the end of the year or over 300.000 US dollars at any given time.
• If you’re filing as “married filing jointly”, the threshold is 400.000 US dollars by the end of the year or over 600.000 US dollars at any given time.

Getting caught up with your US taxes from abroad

If it’s your first time filing US taxes after living overseas for many years, you may have to file multiple tax returns to become IRS compliant. US expats can use the Streamlined Procedure to catch up on three past tax returns and six FBARs with penalties! However, the IRS must not have contacted you regarding unfiled tax returns to be eligible for this procedure.