Just like taxpayers living in the United States, expats living and working in another country as a U.S citizen are also required to file U.S tax returns and pay any taxes due.
2018 Tax Year Deadlines
If you’re living abroad, the rules for expat tax filing deadlines are a little different. If you have any concerns about these, please reach out for some expert advice.
|Filing deadline||15th April 2019|
|Filing deadline for expats||17th June 2019|
|Filing deadline by requesting extension||15th October 2019|
|Deadline to pay tax due||15th April 2019|
Federal Expatriate Extensions
As an expat, your necessary tax documents may arrive at different times to when you were accustomed to in the U.S. To accomodate for any delay, the IRS automatically extends your filing deadline by 2 months every year.
Irrespective of the extension, it is important to note that you must pay any taxes due by 15th April 2019, even if you’re an expat filing your return by 17th June 2019.
If you don’t pay your taxes by 15th April, the IRS will not assess a Failure to Pay Penalty provided you file and pay by June 17, 2019.
If you qualify for the 2-month extension but are unable to file your return by the automatic 2-month extension date, you can request an additional extension to 15th October by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, before the automatic 2-month extension date.
It is possible to request a further two month extension to file your Federal income tax return by writing to the IRS explaining why additional time is required. This extension is provided at the IRS discretion.
Understanding Expat Taxes
If you’re living outside the United States and usually owe U.S. taxes, you may need to make quarterly estimated tax payments to the IRS. An expat tax expert can help you figure those quarterly payments so you can avoid end-of-year penalties. For more information on this make sure to reach out to our team.
Your U.S. tax information is still reported on a calendar-year basis even if you are living in a country that taxes on a fiscal year rather than a calendar year basis (the United Kingdom and Australia, for example).
Requesting an extension can give you more time to gather information before the end of the tax year of the country where you live.
FBAR Filing Deadline
In addition to filing with the IRS, many American expats are required to file a foreign bank account report (referred to as an FBAR). The FBAR filing deadline coincides with the U.S. tax deadline of 15th April, but an automatic six-month extension is available.
The FBAR is required for any expat who has over $10,000 in foreign bank accounts at any point (even one day) during the year. Anything over $10,000 (and this figure applies to all foreign accounts combined) must be reported.
Many expats falsely assume that they do not need to file an FBAR. Note, a “foreign financial account” is not limited to standard current and savings accounts. You must also take into account your mutual funds, trusts, brokerage accounts, foreign pension plans and in some cases, business accounts.
Expat Tax Accountant
Contact an international tax expert if you are unsure of how to proceed with any element of your expat tax submission. Depending on your setup, filing can be complicated, so it’s important to make sure that you don’t put it off.
For help and advice from the tax experts, call Ingleton Partners today on +44 (0) 207 183 2251.
NOTE: Federal Tax Return Expat Tax Deadlines & Due Dates Only are Listed Above – States may have other filing deadlines. This only includes the most common filing dates and should not be relied on for all filing dates. These deadlines relate specifically to the Form 1040 Federal income tax return and FBAR deadlines. Other forms may be required with different deadlines (e.g. Form 3520-A).