US Expat Taxes: 10 Things You Need to Know Before Filing in 2025

For United States citizens living abroad, it is difficult to keep track of many of life’s constants, especially when it comes to taxes. Therefore, it is important to be aware of what they should consider. So, with the new fiscal year underway, there is data that should not be overlooked in order to avoid incurring faults or violations before the IRS.

It should be noted that by complying with tax returns, US citizens who reside in their home country or abroad obtain benefits in terms of public services, refund of credit balances and direct economic benefits or to support their family members, whether spouses or their own children attending basic education.

Important points to know before a tax return

It is important to know that the tax return is annual and without exception. Failure to file tax returns can result in penalties (which can add up quickly!) and delays in receiving your refund.

If you have missed a tax return, there are ways to get up to date with the IRS. Sometimes, those living outside the United States miss their returns out of ignorance or forgetfulness. However, over time, it will become a problem as the IRS begins to take note

Americans living abroad have until June 15 to file their return and can apply for even more time. For those living on US soil, April 15 is the tax filing deadline

Americans living abroad are often subject to double taxation, meaning they may pay tax on the same income earned twice. The IRS offers a number of credits and exclusions that can largely offset the suffering of paying taxes twice.

You may need to file an FBAR (Foreign Bank Account Report) and report your foreign bank accounts in order to combat tax evasion. Failure to report foreign bank accounts can result in severe penalties, including fines starting at $10,000

6. It is also necessary to file a Foreign Account Tax Compliance Act (FATCA) report, which relates more to assets such as pension stocks and other sources of income; again, this has been implemented to prevent tax evasion with a minimum of $300,000 for a single person living abroad or $600,000 for a married couple.

If you are thinking of renouncing your US citizenship, you need to catch up on your taxes so as not to generate conflicts with the IRS that in the long run will involve arrest warrants for tax evasion charges from the fifth year of renunciation onwards.

If you are thinking about retiring, you can still claim your Social Security benefits, but they may be subject to taxes, both in the U.S. and abroad. It is good to know that you will most likely be able to receive Social Security benefits if you retire abroad

9. Speaking of money, it may be cheaper than you think. While the costs involved in filing your taxes vary greatly depending on your circumstances, most reputable expat tax services, such as Greenback, offer a flat fee: everything is itemized with no hidden charges

If you haven’t filed your taxes in several years, you may still be able to claim the third and final stimulus check issued during the coronavirus pandemic. If you file your 2021 return before April 15, 2025, you could claim the third and final stimulus check issued during the coronavirus pandemic. This is the deadline to claim it for that year.