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If you’re living and working abroad and still need to file 2023 taxes, the deadline is only one week away.
While the regular tax deadline was April 15 for most taxpayers, there’s an automatic two-month extension to June 17 for those U.S. citizens and resident aliens, including dual citizens, who live outside the country.
There are two ways to qualify for the June 17 deadline, according to the IRS. You must live outside of the U.S. and Puerto Rico or serve in the military outside the country during the regular tax deadline.
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Although the two-month extension happens automatically, you must attach a statement to your return that explains which situation applies, according to the IRS.
Still, you’ll want to pay your balance due “as quickly as possible” because interest accrues after the original April 15 deadline, said Mike Wallace, CEO at Greenback Expat Tax Services.
The “fastest and easiest” ways to make payments are via an IRS Online Account, Direct Pay and the Electronic Federal Tax Payment System, according to the IRS. But there are additional payment options.
There’s still time to file for an extension
If you can’t meet the June 17 deadline, there’s still time to file for a tax extension, which provides an additional four months, said Rachel Martens, managing director at financial services firm CBIZ MHM.
You can request the four-month extension by filing Form 4868 by June 17, which bumps the filing due date to Oct. 15.
Other filing requirements for expats
In addition to income tax filings, some American expats face added reporting requirements. These requirements can be complicated and mistakes can be costly, experts say.
To that point, roughly 1 in 5 American expats don’t feel comfortable filing U.S. taxes while living abroad, according to a recent survey from Greenback Expat Tax Services.
For example, some expats also must report foreign bank accounts by filing the Report of Foreign Bank and Financial Accounts, or FBAR, if the combined account value exceeds $10,000 any time during the year.
Some expats may also need to complete and attach Form 8938, once certain foreign assets exceed yearly thresholds, Martens explained.
Failing to file the FBAR or Form 8938 can trigger penalties of up to $10,000 or higher, depending on the situation, according to the IRS.
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