It’s April, and you know what that means: it’s tax time! At least for Americans anyway. If you’re reading this, you probably live outside of the United States. If that’s the case, you can take a sigh of relief. As an American living abroad, you have until June 15, 2022, to file your US tax return - that’s an extra two months compared to your friends and family members at home in the US.
Anyone who lives outside the US receives this extension automatically, so don’t say the IRS never gave you anything! There is nothing you need to do to get this extension.
In which circumstances should you file before April 15?
Of course, you can file earlier than that - before April 15, if you so wish - if the idea of filing late gives you anxiety.
Some expats in particular should file by the April deadline. This is you if you expect to owe any US taxes this year. The reason for this is that any tax you owe will start to accrue interest from April 18, 2022. While expats get an automatic extension on filing, they don’t get an extension on paying their US taxes. This means that if you pay after April 18, you could end up paying back more.
Even if you think you may not owe US taxes, you might be surprised. Thanks to Advanced Child Tax Credits, lots of people will wind up owing the taxman money this year, even if they don’t typically owe anything. You should have received Letter 6419 from the IRS. This letter will help let you know if you need to pay back any overpayment you may have received in Child Tax Credits.
Extending your US tax return deadline to June 15
If this doesn't apply to you and you don't owe any US taxs, then you can wait until June 15 to get your tax return sorted and not risk paying any penalties. You don’t need to do anything to get this extension - it’s applied automatically if you reside outside of the US on April 18.
Just be sure to submit your US tax return before June 15, 2022!
Can I get more time to complete?
If you need more than two months to collect all of your income statements and relevant information, there are two other extensions available to Americans living abroad. However, you need to request them.
One is slightly easier to apply for than the other, because one is shorter than the other. You can either apply to have your deadline extended until October, or until December. Let’s take a look at the process of applying for each.
Pushing your tax return deadline to October
You might need more time to get your affairs in order. After all, the Dutch tax deadline doesn't line up with the American one, so you might be kept waiting on certain documents. If that's the case, you can apply to have more time.
To apply for an extension until October, you need to submit a request to the IRS. You can either fill out Form 4868 and mail it, or make an extension payment directly with the IRS. A tax software can also help you file an extension.
You need to submit an extension request before June 15, 2022 - but it’s best to do it as soon as possible, lest you forget! If your request is successful, you’ll have until October 17 to submit your return. That’s an extra six months compared to your compatriots living in the US.
Expats can even extend their deadline to December
If you want even more time, you can even apply to extend your deadline to December. But this takes a little bit of extra effort, because you need to start by getting out a pen and paper. Yup! You need to write a letter. I suppose you could print your letter, but you’ll still need to sign it by hand.
In your letter, explain your circumstances to the IRS. Again, it’s not unusual for expats to be waiting on documents from foreign employers, foreign banks, transfers, and so on. You especially might need more time if you’re self-employed or a business owner.
Write a convincing letter, and you’ll get until December 15 to file your tax return. As long as you have a valid reason and remember to send your letter before the June 15 deadline, you shouldn’t have any problems. Of course, remember to include your name and social security number as written on your US SSN card. Otherwise, how will the IRS know it’s you?
No one knows your specific tax issues like an expat. Expats built
MyExpatTaxes for expats. You don't need to wait until you have every document to start your taxes. The sooner you start, the sooner you'll know if you need to file an extension.