What Should U.S. Americans Abroad Know About Taxes In 2018

Any U.S. citizen living and working abroad have to pay taxes.  There are a few important points we’d like to emphasize when it comes to things you should know about expat taxes for the 2019 tax year. Let’s take a look at them below:

Why do you file

Our below chart shows you whether you need to file according to the IRS or not:

If your filling status is..	You age at the end of the year 2018	File a return if your gross income  was at least..
Single	Under 65 65 or older	$12,000 $13,600
Marriage filling jointly	Under 65 (Both spouse) 65 or older  one spouse) 65 or older ( both spouses)	$24,000 $25,300 $26,600
Marriage filling separately	Any Age	$5
Head of household	Under 65 65 or older	$18,000 $19,600
Qualifying Widow (er)	Under 65 65 or older	$24,000 $25,300

Keep in mind that if you’re married to a non U.S. Citizen,  then you need to file under Married Filing Separately.

Tax Forms Are Required For 2018 Tax Filling:

The forms a U.S. American expat needs to fill out for the 2018 tax year, include:

Form 1040	The  U.S. Individual Income Tax Return + ·         Schedule 1 (For Foreign Earned Income Exclusion) ·         Schedule 2 & Schedule 3 (For Foreign Tax Credit) ·         Schedule 6 (To Report your Foreign Address)
Schedule A	Itemized Deductions
Schedule B	Interest and Ordinary Dividends
Schedule C	Self-Employment Income
Form 8965	Health Coverage Exemptions
Form 2555-EZ	Foreign Earned Income Exclusion or
Form 2555	Foreign Earned Income
Form 1116	Foreign Tax Credit
Form 8812	Additional Child Tax Credit
Form 8833	Treaty-Based Return Position Disclosure
Form 4868	Application for Automatic Extension of Time To File U.S. Individual Income Tax (If you need the extra time!)
(FBAR)	Report of Foreign Bank and Financial Accounts

Know The Deadlines

Normally, the deadline to file American Tax for US Residents Living Abroad is April 15th (if the 15th is a weekend or holiday, this can vary). But, if you are an American living abroad, then the income tax filing deadlines are extended until the 17th of June, 2019, for the 2018 tax year, and the 16th of June, 2020, for the 2019 tax year. If you need to, then you can apply for an additional extension on your expatriate tax return until Oct 15th by completing Form 4868.  Also, keep in mind that if you need to submit the form FinCEN 114 (“FBAR”) to the Treasury, then make sure that it is received by the end of June every year because there are no extensions for this.

Hire A Tax Professional

To avoid any U.S. tax obligation is to leave your citizenship, and that can come with many costs, including exit taxes, fees, and any penalties if you have not filed your FBAR properly. But if you want to retain your U.S. citizenship, then you’ll just have to put up with paying the taxes and it’s a great idea to consult with an expert to help you prepare and filling your return.

Read more: Tips on How to File US Taxes for Students And Other First-Time Filers