Taxpayers living and working abroad must file their 2024 federal income tax return and pay any tax due by June 16. The deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship.
Taxpayers can request an automatic extension to Oct. 15, if they can’t file by June 16, the IRS explains in a recent notice. However, an extension of time to file is not an extension to pay and interest will apply to any 2024 tax payments received after April 15.
Payments
The fastest and easiest way to make a tax payment is through an IRS Online Account, IRS Direct Pay and the Electronic Federal Tax Payment System (EFTPS).
Taxpayers living abroad who do not have a U.S. bank account are able to transfer money directly to the IRS. Visit Foreign electronic payments for more information.
Taxpayers can also pay with a debit card, a credit card or a digital wallet, although service providers may charge a fee for this option.
Extensions
Members of the military stationed abroad or in a combat zone during tax-filing season may qualify for automatic extensions.
"Taxpayers affected by the terrorist attacks in the State of Israel, who live or have a business in Israel, Gaza or the West Bank and certain other taxpayers" have until Sept. 30, to file and pay, the IRS states.
This includes most returns and taxes due from Oct. 7, 2023, through Sept. 30, 2025, including Form 1040 and 1120 series returns.
Taxpayers living outside the United States may be eligible for tax benefits by filing a U.S. return such as the foreign earned income exclusion and the Foreign Tax Credit, according to the agency.
FBAR Requirement
Foreign financial accounts, such as bank accounts or brokerage accounts, must be reported to the Treasury Department’s Financial Crimes Enforcement Network by electronically filing Form 114, Report of Foreign Bank and Financial Accounts (FBAR), according to the IRS notice.
"The FBAR requirement applies to anyone with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2024," the IRS states.
Taxpayers with foreign assets, "even relatively small ones, should check if this filing requirement applies to them," the IRS notice states.
To access the form, taxpayers must visit the Bank Secrecy Act E-Filing System.
The deadline for filing the annual FBAR was April 15. However, FinCEN grants those who missed the April deadline an automatic extension until Oct. 15.
Foreign Accounts and Assets
"U.S. citizens and resident aliens need to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts, as required by federal law," the IRS explains.
Many taxpayers may also need to complete and attach to their return Form 8938, Statement of Specified Foreign Financial Assets.
"For the most part, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. Taxpayers can consult the instructions for this form for more information," the IRS states.
Taxpayers who relinquished their U.S. citizenship or ceased to be lawful permanent residents of the United States during 2024 must file a dual-status tax return, the IRS said.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.