10 things to know about filing your US taxes as an expat in 2025
5 min readNow is the time to ensure you’re ready to file your taxes for the coming year, giving you peace of mind.
In partnership with Greenback Expat Tax Services, here are ten things you’ll need to keep in mind.
1. Yes, you do need to file a tax return every year.
If you’re living and working overseas as an American citizen, your global income is very likely to meet the filing threshold for your particular status – whether you’re single, married or married living separately, for example.
Failure to file tax returns can result in fines (which can quickly accumulate!) and delays in receiving your refund.
2. If you haven’t filed for a few years, there’s a way to catch up.
Don’t panic! Many Americans go years living abroad without filing a tax return, either because they didn’t know, or it slipped their mind. After a while, however, it will become a problem, as the IRS begins to take notice.
Luckily, the Streamlined Filing Compliance Procedures has been developed to help you get up to date if you’ve fallen behind.
If you meet the criteria, you will be able to file up to three years of taxes without any penalties. However, you will need to declare that you will continue to file your taxes promptly and submit six years worth of FBAR forms.
3. Americans living abroad have until June 15th to file, and can ask for even more time
You may remember April 15 as being ‘Tax Day’ – the deadline for Americans across the country to file their taxes.
However, if you’re living abroad, you are automatically granted an extension of two months. In 2025, that will be June 16th.
You can also request a further extension to October 15 if you need to gather more information, such as documents from a foreign employer.
This can be done either by filing a Form 4868 before June 16 yourself or using a tax service such as Greenback
4. You can take the pain out of double taxation with deductions and credits
Americans living abroad are often subject to double taxation – that is to say, they can be taxed on the same earned income twice.
Unfair? Probably. However, the IRS offers a number of credits and exclusions that can offset a lot of the pain of being taxed twice.
These include the Foreign Earned Income Exclusion, the Foreign Tax Credit and the Foreign Housing Exclusion.
Working with a professional expat tax service such as Greenback will help you understand exactly which you can use, and claim them in your return, thereby saving you potentially thousands of dollars.
5, You may need to file an FBAR (Foreign Bank Account Report) and declare your foreign bank accounts
Designed to combat tax evasion, a Foreign Bank Account Report (FBAR) needs to be filed each year by those Americans with combined foreign bank accounts exceeding $10,000 in balances at any point during the year.
Failure to report foreign bank accounts can result in steep penalties, including fines starting at $10,000 – so it’s a very, very good idea to remain compliant.
While it may seem complicated, expat tax services are pros at preparing these forms and ensuring that the IRS doesn’t come after you.
6. You might need to file a FATCA report too!
While the FBAR relates to foreign bank accounts, a Foreign Account Tax Compliance Act (FATCA) report relates more to assets such as pensions shares and other income sources – once again, this has been implemented to prevent tax evasion.
If these assets total more than $300,000 for a single individual living abroad or $600,000 for a married couple, at any point during the year, they must be reported. Failure to do so can result in severe penalties, similar to those for failure to file an FBAR.
Life’s too short to worry about tax returns. Use an expat tax professional like Greenback and spend time enjoying Europe! Photo: Chris Bahr / Unsplash
7 If you’re thinking of giving up your American citizenship, you need to be caught up with your taxes
If you’re considering renouncing your American citizenship, for whatever reason, you will first need to make sure that you are in good standing with the IRS – that is to say, you will need to have filed your taxes for the last five years.
There may also be an ‘exit tax’ to pay, depending on your income and assets – so you must know exactly how you stand with the IRS.
Filing consistently with an expat tax service will ensure that you remain informed, and can plan ahead.
8. If you’re thinking of retiring, you can still claim your Social Security benefits – but they can be taxed, both in the US and abroad
It’s nice to know that you are very likely to be able to receive social security benefits if you retire abroad.
However, depending on your citizenship status, where the country you’re living in has a taxation treaty with the United States and a number of other factors, there may be taxes applied to your payments.
This can have several implications. To maximise your chances of the lowest possible taxation on the income derived from social security, you must understand what you can claim or deduct. This is where a professional can save time and money.
9. Speaking of money, it may be cheaper than you think
While the costs involved with filing your taxes will vary greatly depending on your circumstances, most reputable expat tax services, such as Greenback, offer a flat rate – everything laid out with no hidden charges.
Greenback even offers a Tax Pricing Calculator, letting you know exactly how much you’ll pay ahead of making your decision.
10. Need a nudge? You may still be able to claim the third stimulus check!
If you’ve gone a few years without filing a tax return, here’s something to sweeten the deal – if you file your 2021 return before April 15 2025, you may be able to claim the third and last of the stimulus checks issued during the coronavirus pandemic. This is the final deadline to claim for that year.
This payment can total $1,400 for an adult, with more for those with dependents. It simply makes sense to catch up on your taxes and receive the money that you are entitled to.
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