Expat tax return

U.S. Citizens & Resident Aliens Abroad

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad.

Expats living abroad are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code.

Many Americans living abroad qualify for special tax benefits, such as the foreign earned income exclusion and foreign tax credit, but they can only obtain these benefits by filing a U.S. return.

"Owing taxes"

You may be relieved that many expats usually don’t owe taxes to the IRS when living abroad. This is often due to various tax benefits and exclusions that help prevent Americans from facing double taxation on foreign income and incurring unnecessary fees. For those in need of assistance, resources for tax preparation in Fall River, MA, can help ensure compliance with these regulations and provide guidance on the tax link for residents in Fall River, MA.

The Foreign Bank Account Report (FBAR) is a form that every US expat may need to file. If you have had at least $10,000 in savings across any foreign financial accounts at any one time during the tax year, you may still be required to file an FBAR, even if you do not need to submit a US tax return. Therefore, whether you possess a foreign bank account, such as a savings, checking, or investment account, you will need to file the FBAR. Additionally, if you have signatory authority over a foreign financial account—like a shared bank account with your spouse—you also need to file. For those seeking assistance, consider reaching out to tax preparation services in Fall River, MA, to ensure compliance with all requirements, including the FBAR, and other tax obligations like the tax link in Fall River, MA.

US citizens living abroad may have to file state taxes, so remember that you're not automatically excluded from paying state taxes if you're living abroad. Generally, Americans abroad only need to file a state tax return, along with their federal tax return, if: they are considered domiciled (having a permanent home) in that state, have lived in the state for a part of the tax year (January 1st-December 31st), or have earned money working in the state, even if temporarily. We will need to review your state’s filing requirements since all US states have their own laws. We will inform you if you need to file state taxes. For tax preparation in Fall River, MA, we file income tax returns in all 51 states, including Puerto Rico, ensuring that residents understand their tax link in Fall River, MA.

The 2025 tax filing deadline for expats is June 17th, 2025, with the final deadline being October 15th, 2025. For those seeking assistance, tax preparation in Fall River, MA, can help ensure compliance with these deadlines. 

If expats don’t meet the filing and tax payment deadlines, they may face penalties and fines, which can be avoided by using local tax link services in Fall River, MA. 

Common penalties include: 

- Failure to file: This occurs when you don’t file your tax return by the return due date, April 15th, or by the extended due date if an extension to file is requested and approved. 

- Failure to pay: This happens when you don’t pay the taxes reported on your return in full by the due date, April 15th. Remember, an extension to file doesn’t extend the time to pay. 

- Failure to pay properly estimated tax: This penalty applies if you don’t pay enough taxes due for the year with your quarterly estimated tax payments or through withholding when required.

As a self-employed expat, you need to file a 1040 tax return and pay a self-employment tax separately after calculating your net profit. Both Social Security taxes and Medicare taxes will be your responsibility. For those in need of assistance, our team of tax professionals in Fall River, MA, will help you with your self-employment tax calculations. The self-employment tax rate for 2025 is set at 15.3% on your net profit. We love tax time and are here to provide the best tax preparation in Fall River, MA.